subject: The California Enterprise Zone And Your Business [print this page] Author: Wayne Hemrick
In recent years, the State of California in attempts to encourage economic development in target communities, has identified forty-two areas in which companies can qualify for enterprise zone credits. Unfortunately, many small business owners and entrepreneurs don't realize that their companies is located in a California enterprise zone and therefore eligible for an enterprise zone tax credit.
There are numerous ways in which your small business could benefit from being located in a California enterprise zone.
What Is A "California Enterprise Zone" ?
In order to qualify for a California tax zone credit, a business operation must be located in a community that Sacramento has identified as economically disadvantaged. The idea behind these "enterprise zones" is to encourage economic development by the private sector in these areas, providing jobs for local residents and promote greater economic activity.
When your company is located in such an area, it can qualify for enterprise zone credits in many ways, such as giving hiring preference to certain groups who normally have a difficult time obtaining employment. For example, your business may qualify for a California enterprise zone tax credit if you hire:
military veterans
disabled persons
qualifying ex-felons
members of ethnic minority groups
young people
May may not realize it, but by locating your business in a California enterprise zone and hiring from among such groups, each employee can be worth up to $13,000 to you in the form of an enterprise zone tax credit.
I've Been Doing That For Years!
If you were not aware of the California enterprise zone tax credit and failed to take advantage of it, you can still benefit by filing amended tax returns for the past three years.
There are additional ways by which your business can qualify for an enterprise tax credit. For example, businesses located in a California enterprise zone can receive a tax credit of up to $4000 for every $10,000 spent on "green" technology. This may include any of the following:
geothermal heat pumps
wind generators
solar panels
solar water heaters
energy-efficient vehicles
In addition to promoting economic development, the State of California is also committed to reducing consumption and pollution levels, which is why lawmakers have made these tax credits available.
In order to find out if your business is located in a California enterprise zone and to learn more about how your company can benefit from these changes in the tax code, contact a qualified local Certified Public Accountant today.About the Author:
