Delta Area Development, Inc.

Developing a stronger economy for Delta County.
Tax Benefits

Tax Benefit Analysis for Investment in Delta Area Development, Inc. EXAMPLE WORKSHEET

 

Contribution With EZ Tax Benefits

Contribution Without EZ Tax Benefits

Cash Contribution to

$2,500

 $2,500

State Taxable Income

($2,500)

($2,500)

State Tax at 5%

($125)

($125)

State Tax Credit at

($625)

($ 0)

Total State Tax

($750)

($125)

 

Federal Tax

($2,500)

($2,500)

State Tax Refund increase

 

 

Federal Taxable

 $750

$125

Net Reduction to Taxable Income

($1,750)

($2,375)

 

Total Federal Tax at 35%

($613)

($831)

 

Summary:

 

 

Cash Contribution

 $2,500

 $2,500

State Tax Benefit

($625)

($125)

Federal Tax Benefit

($613)

($831)

Net Cost of Contribution

$1,262

$1,544

 

% Savings on Investment

50%

38%

% Increase in Savings

32%

0%

Assumptions:

Investor is a corporation (may be any tax paying entity without restriction to however, federal tax reduction may be

  1. Federal corporate tax rate = State tax rate = 5%
  2. Contribution qualifies as ordinary and necessary business
  3. Tax benefit analysis based upon a $2,500 cash investment to support Enterprise Zone
  4. Benefit analysis reflects 25% State income tax credit for a cash contribution to DADI in name of the Delta County Enterprise Zone using accrual accounting
  5. Benefits will vary depending on the circumstances of the individual taxpayer. Please consult your tax counsel before making contributions. Thank you

For Investments to DADI - please make checks payable to “Delta Area Development”
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