Some businesses on the Gulf Coast will have more time to take advantage of a special tax incentive. This week, Congress passed the Tax Relief and Health Care Act of 2006. The act extends the deadline to December 2010. The incentive is part of the Gulf Opportunity Zone Act or Go Zone. It's a piece of legislation leaders say is essential for economic growth.
Barbara Stewart is a commercial real estate broker. She believes Go Zone is a great idea to help the Gulf Coast rebuild. The only bad idea was the original deadline.
"Your projects had to be in service before the time they had given us and 2008 started to be a little unrealistic," says Stewart.
Attorney John Harral agrees. He says with the old deadline, businesses were moving out instead of moving in.
"We were seeing new developments that really were not going to be able to do their due diligence and get build in time to take advantage of the Accelerated Appreciation incentive. Because they couldn't, they were leaving the area," says Harral.
Now with the new deadline set at December 31, 2010, developers are coming back to the Gulf Coast.
From condos to industrial businesses, many builders will benefits from the act. Benefits that will put southern Mississippi back in business.
President Bush still has to sign the extension for Go Zone's bonus depreciation tax.