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Enterprise zone is a specially designated area within which businesses are granted numerous advantages. Enterprise zone is commonly associated with such business incentives as income tax credits, equipment tax refunds, and property tax credits. At its core, the enterprise zone is a means to targeting a specific geographic area for economic revitalization. Creating an enterprise zone encourages investment and promotes economic growth. Thus, an enterprise zone can be generally found in distressed and derelict areas, such as urban, inner city districts with significant employment declines. In the United States enterprise zone programs operate at both state and federal levels. Almost every state has some form of an enterprise zone plan, each with its own agendas and incentives to offer. Enterprise zone designations are based on criteria that include population, poverty rates, and economic distress.
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