Enterprise Zone Tax Credits
The Enterprise Zone tax credit program offers businesses located in enterprise zone areas the opportunity to reduce their state income tax through a variety of tax incentives. These benefits can have a dramatic impact on the profitability of your business.
Hiring Credit
If your business qualifies, you can reduce your businesses’ state income tax by $37,440 per qualified employee over a 5-year period. You can carry these credits over from year to year until you use them all.
The following is an example of hiring tax credits years 1 to 5 (per employee):
| $24,960 = $12.00 hour x 2080 hours | ||
| Year 1 credits | $24,960 x 50% | $12,480 |
| Year 2 credits | $24,960 x 40% | $9,984 |
| Year 3 credits | $24,960 x 30% | $7,488 |
| Year 4 credits | $24,960 x 20% | $4,992 |
| Year 5 credits | $24,960 x 10% | $2,496 |
| Total 5 Year Per Employee | $37,440 | |
ELLS’ is committed to working with your business to identify, qualify, and capture all Enterprise Zone tax credits available to you. The professionals at ELLS are recognized experts in identifying and capturing Enterprise Zone incentives for our clients. ELLS was named Advocate of the Year in 1997 for the Santa Ana Enterprise Zone, in recognition of the many hours we spent promoting the zone and training zone businesses to identify and use EZ credits. We were further recognized for Outstanding Achievement and named Zone Advocate of the Year for the State of California by the California Trade and Commerce Commission. Call us today to learn more about how we can help you identify and obtain all of the Enterprise Zone tax credits available to you.
Other Enterprise Zone Tax Credits include:
- Net Operating Loss Carryover (NOL)
- Net Interest Deduction for Lenders
- Sales and Use Tax Credit
- Business Expense Deduction