Empowerment Zone Employment Credit
Response to the following problem:
During 2013, Tango, Inc. (a calendar year taxpayer) paid $18,000 of qualified wages to Reba, of which $13,000 were paid in 2013 and the rest were paid in 2014. Reba works at Tango's factory located in the empowerment zone where she also lives.
In which tax year(s) would Tango be entitled to claim the empowerment zone employment credit, and compute the amount of the credit.