Enterprise Zone Benefits Group

Enterprise Zone Program Purpose

The Enterprise Zone Program targets economically distressed areas throughout California. The purpose of the program is to provide tax incentives to businesses and allow the private sector to revive the local economy. Special state and local incentives encourage business investment and promote the creation of new jobs.

Eligibility

There are 42 Enterprise Zones located throughout California. Businesses located within the boundaries of the Enterprise Zone are eligible to take advantage of the benefits.

For a list of street addresses or to learn more about the Enterprise Zone program you can visit the California Department of Housing and Community Development’s web site.

Enterprise Zone Program Benefits

Firms can earn $37,440 in hiring credits for each qualified employee hired.
Enterprise Zone businesses can reduce taxes by the amount of sales or use tax paid on machinery, computers, fax machines, copy machines and telephone equipment.
A deduction from income is allowed on the amount of net interest earned on loans made to businesses located within the Enterprise Zone.
Other incentives include a business expense deduction and a 100% NOL carryover.

Hiring Credit Calculation

Wages paid to qualified employees can be claimed over a five year period. The hourly wage cannot exceed 150% of minimum wage.

First year: 50% of wages paid
Second year: 40% of wages paid
Third year: 30% of wages paid
Fourth year: 20% of wages paid
Fifth year: 10% of wages paid

What are the criteria that will qualify an employee?

An employee may qualify based on where they live. In addition an employee may qualify if they have military experience, are Native American, disabled, have received government aid, ex-felon or were economically disadvantaged prior to their hire date. There are other criteria as well. Our firm will determine which employees qualify and obtain vouchers for each of these employees.