California Enterprise Zone tax credit services.
The State of California has established 42 business incentive zones spanning from the Bay Area to the Mexico border. The purpose of these “Enterprise Zones” is to encourage economic growth, reduce unemployment and serve as an attraction and retention tool for cities. Businesses operating in one or more of the 42 Enterprise Zones are eligible for California income tax credits based on qualified hires, investments in equipment and lending. Of the tens of thousands of companies located in state Enterprise Zones, only about 10-15% are actually taking advantage of the substantial tax breaks. This general lack of participation can be attributed to the complex nature of the program and a lack of awareness.
The Hughes Marino tax credit services team has been working hard to bridge the gap. We have created a risk-free opportunity for companies to evaluate potential savings and refunds available, we work in collaboration (not competition) with your current accounting representative and offer complimentary audit support and amended tax returns. The result has been over $50 million in savings generated to date.
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California Enterprise Zones
What exactly is a California Enterprise Zone? It is a geographically-designated business community in which a company like yours may be eligible for substantial state income tax refunds and savings based on jobs created and investments made in capital equipment including hardware and software. Of the 42 Enterprise Zones, here are some of the most recognizable:
- San Diego Enterprise Zone. San Diego is home to one of California’s largest and most unique Enterprise Zones. Established in October 2006, the San Diego Enterprise Zone includes business communities throughout the region including; Downtown, North and South Park, University and City Heights, Barrio Logan, National City, Chula Vista, San Ysidro, Otay Mesa and others. As of September 4, 2012, the State officially approved San Diego’s application to expand the zone North of the 8 Freeway into business communities such as; Rancho Bernardo, Mira Mesa, Kearny Mesa, Mission Gorge, Linda Vista, Bay Park, and North Bay. Begin taking advantage of the San Diego Enterprise Zone.
- Anaheim Enterprise Zone. The newest of California’s 42 Enterprise Zones—making it a wealth of development opportunity—is The Anaheim Enterprise Zone. A central Orange County city and a hub of both industry and tourism, the zone in the City of Anaheim includes large regions on both sides of Interstate 5, the City’s main corridor. Businesses can also receive tax credits within Anaheim’s industrial triangle, bordered by CA-57 on the west, Orangethorpe Avenue on the north, and CA-91 on the south. Begin taking advantage of the Anaheim Enterprise Zone.
- Long Beach Enterprise Zone. Formed in January 2007, the Long Beach Enterprise Zone covers over 41 square miles, and includes the majority of the City’s commercial and manufacturing districts. Begin taking advantage of the Long Beach Enterprise Zone.
- Los Angeles Enterprise Zone. The City of Los Angeles is home to two paramount Enterprise Zones: Hollywood and East Los Angeles. The Hollywood Zone includes business communities within Central City, Wilshire, and Hollywood. In 2010, an expansion led to the inclusion of portions of Van Nuys, Woodland Hills, Chatsworth, Northridge, and the areas surrounding LAX, creating unparalleled business opportunities. Nearby, Central City North, Boyle Heights, and Northeast Los Angeles make up the East Los Angeles Enterprise Zone. Begin taking advantage of the Los Angeles Enterprise Zone.
- Pasadena Enterprise Zone. Established in 2007, the Pasadena Enterprise Zone is an economic development program incorporating 90% of the commercially and industrially zoned parts of Pasadena, and the majority of business communities within the City. Begin taking advantage of the Pasadena Enterprise Zone.
- San Francisco Enterprise Zone. Rapidly growing since its inception in May 2007, The San Francisco Enterprise Zone creates opportunities and tax credits for businesses operating in a number of world-famous districts in California’s landmark city. Business communities in San Fransisco include the heartbeat of the City—Downtown and the Financial District—as well as Fisherman’s Wharf, the Embarcadero, Central Waterfront, and The Mission. Begin taking advantage of the San Francisco Enterprise Zone.
- Santa Ana Enterprise Zone. Covering over sixteen square miles of commercial and industrial-zoned land (nearly 60% of the City), the Santa Ana Enterprise Zone is one of California’s largest. Begin taking advantage of the Santa Ana Enterprise Zone.
More California Enterprise Zones
Download maps for the other California Enterprise Zones below:
- Calexico Enterprise Zone
- Compton Enterprise Zone
- Fresno Enterprise Zone
- Imperial Valley Enterprise Zone
- Los Angeles-East Enterprise Zone
- Los Angeles-Hollywood Enterprise Zone
- Oakland Enterprise Zone
- Sacramento Enterprise Zone
- San Bernadino Enterprise Zone
- San Jose Enterprise Zone
- Santa Clarita Enterprise Zone
- Stanislaus County Enterprise Zone
Tax Credit Programs
How can Hughes Marino work for you? Here’s some of the tax credit programs we’ll help you navigate:
- California Enterprise Zone Program – The California Enterprise Zone Program offers state income tax credits to companies operating in one or more of the 42 zones statewide for qualified job creation and capital asset expenditures. On the hiring side, Enterprise Zone based businesses can obtain up to $37,000 in state income tax credits over a five year period for each qualified hire. In addition, for qualified asset purchases or leases, companies in the Enterprise Zone can obtain state income tax credits equivalent to the sales tax paid on those purchases. Lenders can also obtain a net interest deduction benefit for lending to business operations within Enterprise Zones.
- Federal Work Opportunity Tax Credit (WOTC) Program. When you hire qualified new employees, there’s tax credit savings there, too. Via the WOTC Program, offering Federal income tax credits for these new hires, you’ll receive credits calculated as a percentage of qualified wages earned in the first year of your employee’s tenure. Your credit is up to 40% of the first $6,000 in wages earned by a qualified employee. There is constant screening required, complex requirements, and time constraints (HUD requires all applications to be filed within 28 days of employment, and retro-active filings are not accepted), but we’ll be with you every step of the way. That’s our job.
- Federal Empowerment Zone Program. The Federal Empowerment Zone Program offers companies in designated areas up to $3,000 in federal income tax credits per year per qualified hire. There are 22 Empowerment Zones in the United States, including four in California.
- LAMBRA Credits. Lesser known but no less rich in incentives, The Local Military Base Recovery Act allowed many former military bases (since converted to commercial business centers, such as San Diego’s Liberty Station) to become tax incentive zones. This is powerful not only for the community, but for your business. When you operate in a LAMBRA Zone, you can earn income tax credits for qualified hires and sales. You can use credits for equipment purchases, and up-front expensing of certain depreciable property.
Why work with Hughes Marino Tax Credit Services?
- Our Tax Credit Services team operates on a performance-based contingency model. Simply put, there is no cost or risk to you. If we cannot refund your taxes from past years or save you taxes now and in the future, you have no financial obligation towards us. We help you get tax credits, period.
- We do not compete with accounting representatives or CPAs. Our tax credit studies are conducted in a way that is complimentary to your current accounting representation. We are a valuable resource for many accounting firms and tax preparers.
- Hughes Marino Tax Credit Services defends all associated FTB and IRS tax credit audits free of charge for our clients with our Audit Protection Guarantee.
- We’ve saved clients—like you—over $50 million since 2006. Be one of them. Our expertise in this niche field and our extensive real estate and location-based tax credit experience allows us to offer you pack-leading advice and knowledge. We offer complimentary site selection analysis service, based around The California Enterprise Zone, that is unpaired in the industry.
- Your information remains 100% confidential. We are committed to the privacy, confidentiality, and security of information for our clients. We provide confidentiality and non-disclosure agreements to all of our clients. Your business belongs to you, not the world.
Ready to get started with California Enterprize Zone tax credits? Contact us today!