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Enterprise Zone Tax Credits

What is an Enterprise Zone?

California Enterprise Zones are designed to promote local job growth as well as retain and attract new business in economically distressed areas of California.  Currently, there are 42 Enterprise Zones in the State of California. Companies doing business in an Enterprise Zone are entitled to many profitable tax incentives including a hiring tax credit worth up to $37,440 per qualified employee.

Who Qualifies?

Any business located in one of California's 42 Enterprise Zones.

What Credits are Available?

Businesses located within a California Enterprise Zone are eligible to take advantage of the following credits:

Hiring Tax Credit:

The hiring tax credit allows an employer to take credits of up to $37,440 per qualified employee, over a five year period. Past and Current employees qualify in many ways.

Sales and Use Tax Credit:

Sales tax paid on qualified Manufacturing Equipment, Technology Investments, Cinematic Production and Telecommunication Equipment may also be claimed as credit.

Business Expense Deduction:

Businesses may deduct the cost of qualifying items of business equipment, furniture and fixtures (or other depreciable personal property) as a business expense in the year it is placed into service. The maximum deduction is $20,000.

Net Interest Deduction for Lenders:

Net interest earned can be excluded on loans made to a business located solely in an Enterprise Zone.

Net Operating Loss Carryover:

Net Operating Loss deductions may be carried forward for up to 15 years.

 

Our Mission

To help our clients realize their full Enterprise Zone benefit potential as efficiently as possible.

Get Started!

Get started with your free evaluation today!  Give us a call and within minutes we can help you determine your benefit amounts.