What is an Enterprise Zone and why is the state offering these incentives?
Enterprise Zones were established to stimulate development in economically challenged areas. These incentives not only help prevent businesses from relocating outside of California, they allow them to grow. These special state and local incentives encourage business investment and promote the creation of new jobs. The program provides tax incentives to businesses that allow private sector market forces to revive the local economy.
How long does this process take?
It takes 1 - 2 hours onsite, to go through the necessary paperwork, with the rest of the work completed at our office - everything from filling out the necessary forms to submitting them to the state. In total the whole project can generally be completed within 6-8 weeks.
I wouldn’t be able to take advantage of the hiring tax credit program because I don’t have any employees with criminal records?
There are 12 other criteria in which an employee may qualify. As long as you have employees, pay taxes and run a profitable business, odds are that there are useable tax credits available.
How long can I claim credits for one qualified employee?
For a qualified employee that continues to be employed, you can claim credits on a declining scale for 5 years.
What if I don’t need any tax credits right now?
The tax credit may not be needed presently, but these credits can carry forward into future years and it is always in your best interest to stay on top of this program even if it doesn’t apply today.