|Enterprise Zone Tax Credits|
California's 42 Enterprise Zones.
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.