THE CALIFORNIA ENTERPRISE ZONE TAX CREDIT

 What is the Credit?

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

Credit can be taken for up to five years per qualifying hire

Enterprise Zone (EZ) businesses that hire eligible employees may claim a 5-year credit equal to 50% of first year wages, then reduced by 10% each year for the remaining four years of the credit (see table below)

One person alone can generate a $31,605 credit

A person earning $12.00 an hour that works 40 hours per week will generate the maximum credit available under this program if retained five years.

We provide on-site screening of new employees for the California Enterprise Zone (EZ) program.  A vouchering coordinator works closely with the hiring managers and the EZ administrators to maximize the tax credit benefits available to businesses with locations in the EZ. We have has found this process to result in increased numbers of certified employees with minimal involvement required of company management.

To qualify, eligible employee only needs to be a member of one of several different groups:

• Work Opportunity Tax Credit Certified or eligible

• Targeted Employment Area resident

• Native American

• Ex-Offender

• Disabled

• Eligible for or receiving Food Stamps, Supplemental Security Income, state or local County Adult Assistance Program (CAAP)

• Service-connected disabled veteran, veteran of the Vietnam era or Veteran separated from military service within the last 48 months

• Dislocated worker

• CalWORKs eligible or enrolled

• Workforce Investment Act (WIA) job training program eligible or enrolled