Enterprise Zone Tax Credits:

We at Gonzalez CPA focus in keeping up to date with government assistance programs aim to provide value to our clients. A viable measure can be shown through Enterprise Zone Tax Credits which encourages and stimulates growth, development, and investment within certain pockets of our community. Taxpayers who invest, operate, or locate a trade or business within an Enterprise Zone may be eligible for special tax incentives.

Incentives: There are 5 tax incentives available to taxpayers that invest or operate a trade or business located within an Enterprise Zone:

Hiring Credit: A qualified business may reduce its state income tax by $37,440 (Santa Ana, CA) over a 5-year period per qualified employee. The credits may be carried over until they are exhausted. *

Sales or use tax credit: California income or franchise tax may be reduced by the amount of sales or use tax paid on certain machinery, machinery parts, and equipment purchased for exclusive use in an Enterprise Zone. *

Business Expense deduction:   Part of the cost of certain property purchased for exclusive use in the Enterprise Zone may be deducted as a business expense in the first year it is placed in service. (Amount of deduction changes annually, call for current value.) *

Net interest deduction:  A deduction from income is allowed on the amount of "net interest" earned on loans made to a trade or business located exclusively in the Enterprise Zone. *

Net operating loss (NOL) deduction:   Up to 100% Net Operating Loss (NOL) for individuals or corporations doing business in the Enterprise Zone may be carried over for up to 15 years to reduce the amount of taxable income generated within the Enterprise Zone for those years. *

Net operating loss (NOL) deduction:   Up to 100% Net Operating Loss (NOL) for individuals or corporations doing business in the Enterprise Zone may be carried over for up to 15 years to reduce the amount of taxable income generated within the Enterprise Zone for those years. *

* Note: Laws governing Enterprise Zone Tax Credits change frequently, please contact one of our advisors to get up to date information. Click on the link below to send us a message. Gonzalez CPA has allocated a dedicated Enterprise Zone team that will assist you with every need from beginning to end. Please contact us via email or phone so that we may qualify your firm or employees for this valuable program.