Enterprise Zone Programs
Established in 1986, the California Enterprise Zone program rewards businesses that help stimulate the economy and create job opportunities for Californians. Businesses, workers, communities and the state all benefit from these programs. American Tax-Credits Group specializes in working with businesses of all sizes and industries to take full advantage of the Enterprise Zone program. If your business operates within one of these zones then you may be eligible for the state and local incentive programs. These incentives can supplement the location, expansion and retention of your business and may include:
- Tax credit of $37,500 or more over five years for each qualified employee hired
- Sales tax credits on purchases of up to $20 million per year of qualified machinery and parts
- Up to 100 percent net operating loss deduction and a 15-year carryforward
- Accelerated expensing of some depreciable property
- Net interest deduction for lenders to zone businesses
- Streamlined development process
- One-stop permitting
- Same-day inspections
- Employee training programs
- Deferred, reduced or waived fees
- Below-market site and/or leases
- Development liaison
- Business consultant services grants
- Micro enterprise programs
- Local financing
- Retroactive, we can go back 4 years to claim your tax refunds!
Contact us today for further information and details regarding your eligibility for incentives in your zone. We will fully analyze your individual situation and help you receive the maximum incentives and refunds that you are eligible for, today and in the future. We will also be happy to answer any questions you may have so feel free to email or give us a call.
Targeted Tax Areas
Targeted Tax Area (TTA) incentives are available to companies located within the TTA boundaries and engaged in a trade or business within the following Standard Industrial Codes:
- 2000-2099 Food Processing
- 2200-3999 Certain Other Manufacturers
- 4200-4299 Trucking and Warehousing
- 4500-4599 Air Transportation
- 4700-5199 Transportation Services, Communications and Wholesale Trade
State incentives include:
- Tax credits for sales and use taxes paid on certain machinery, machinery parts, and equipment.
- Tax credits for hiring qualified employees.
- Fifteen year net operating loss carry-forward.
- Accelerated expense deductions.
LAMBRAs
If your business is located in a fully-designated local agency military base recovery area (LAMBRA), then you may be eligible for the following program incentives.
- Up to 100% Net Operating Loss (NOL) carry-forward; may be carried forward for 15 years.
- State tax credits for each qualified employee hired up to $2 million per year with a few provisions.
- Corporations can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts.
- Upfront expensing of certain depreciable property, up to $40,000 annually.
- Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment.
In addition to these California tax credits, many LAMBRA communities also offer local incentives as a part of their business attraction package. These can include base properties and buildings and the use of machinery, tools, or office equipment left behind by the military.
American Tax-Credits Group can help you determine your eligibility and assist you in receiving the maximum incentives and benefits.
To date, three of the eight LAMBRA zones have been awarded a final LAMBRA designation. These fully designated LAMBRAs are operational and can offer businesses a wide range of incentives. They are Castle Air Force Base in Merced, George Air Force Base in Victorville, and Mare Island Naval Shipyard in Vallejo.
Alameda Naval Air Station in Alameda, the Tustin Marine Corps Air Station in Tustin, Norton Air Force Base in San Bernardino, and Mather Field and McClellan Air Force Bases (single designation for both bases) have been awarded conditional designation.
All three former bases will be finally designated after the Environmental Impact Statement/Environmental Impact Report are completed and submitted to the Agency. Final designation entitles businesses locating in a LAMBRA to claim the tax credits.
Manufacturing Enhancement Areas
Manufacturing businesses classified under SIC 2011 to 3999 that are located in a Manufacturing Enhancement Area may be eligible for these program benefits.
- Streamlined local regulatory controls.
- Reduced local permitting fees.
- Eligibility for state tax credits for each qualified employee hired.
Net Interest Deduction
A deduction from income is allowed for the amount of “net interest” received from loans made to a trade or business located in the Enterprise Zone. The lender is not required to be located within the Zone.
Some Requirements:
- Funds must be loaned after the Enterprise Zone was designated.
- Loan must be made to a business located solely within the Enterprise Zone.
- Loan proceeds must be used only for the trade or business activities within an Enterprise Zone.
- Lender may not have any type of ownership interest in the business.
Federal Work Opportunity Tax Credit
WOTC is a Federal tax credit that provides you with a dollar for dollar tax credit of:
- $2,400 for each new adult hire;
- $1,200 for each new summer youth hire,
- $4,800 for each new disabled veteran hire, and
- $9,000 for each new long-term family assistance recipient hired over a two-year period.
Employees can qualify based on any one of nine target groups.
There is a time sensitive application process for the WOTC, once a certain amount of days pass from the employees’ date of hire, the employee no longer qualifies. ATG will ensure you that the application process runs smoothly and accurately so no savings are lost.
These are just a few of the many tax credit programs mentioned above. There are currently over 90 different tax credits available to eligible business owners. American Tax-Credits Group can help you determine your eligibility and assist you in receiving the maximum incentives and benefits. Contact us today for a free consultation.