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What is the Enterprise Zone-Hiring Tax Credit?
The California Enterprise Zone-Hiring Tax Credit is a state income tax credit for tax-paying employers in any one of the 42 Enterprise Zones. A single qualified employee can provide savings of $37,000 or more during the first five years of employment. Simply stated, your company may be eligible to receive a significant tax credit and, in some cases, refunds for operating in the Enterprise Zone. This is a dollar-for-dollar tax savings. Companies even have the ability to carry forward unused credits into future years.
 How does an employee qualify?
You'd be surprised who qualifies for this program - the criterion is very diverse and not exclusive to any specific type of workforce. For eligibility, an employee must fall under one of 13 criteria, which have been defined by the state.
Below is a sample calculation of the hiring credit one employee can earn, using various rates of pay:
|
Hourly Pay / Salary
|
|
Year
|
Credit
|
$8/hr
|
$9/hr
|
$10/hr
|
$12/hr
|
$75,000/year
|
|
1
|
50%
|
$8,320
|
$9,360
|
$9,745
|
$12,480
|
$12,480
|
|
2
|
40%
|
$6,656
|
$7,488
|
$8,320
|
$9,984
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$9,984
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|
3
|
30%
|
$4,992
|
$5,616
|
$6,240
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$7,488
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$7,488
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4
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20%
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$3,328
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$3,744
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$4,160
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$4,992
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$4,992
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|
5
|
10%
|
$1,664
|
$1,872
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$2,080
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$2,496
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$2,496
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Total
|
|
$24,960
|
$28,080
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$30,545
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$37,440
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$37,440
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How long does this process take?
It will take anywhere from one to two hours for The Enterprise Zone Company to go through the necessary paperwork at your site. The rest of the work is done at our office, where we fill out the necessary forms to submit to the state. The whole project can range from two to four weeks.
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