Tax Breaks For Renewal

How would you like to pay no capital gains when you sell your business? Thanks to Congress, it's not out of the question--provided your business is in the right neighborhood.

The House of Representatives voted on July 25 to create 40 "renewal zones" in poor communities across the country that would be eligible for a number of incentives and tax breaks, including the exemption from capital-gains taxes on the sale of a business held for at least five years. Businesses in the zones also would receive tax breaks to help offset environmental cleanup costs.

Unlike this season's other tax-reform packages, it's likely that this legislation will become law. The White House backs it, and the measure, which passed the House by a vote of 394-27, has the strong support of Democratic leaders in the Senate.

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