www.hcd.ca.gov/fa/cdbg/ez/EZ_Directory.pdf
www.hcd.ca.gov/fa/cdbg/ez
Designated Enterprise Zones provide tax incentives to businesses and allow private-sector market forces to revive local economies.
Enterprise Zone Credits for Qualified Hires
The largest tax incentive in the enterprise zone (EZ) program is the hiring credit offered to businesses that hire qualified individuals to work within the boundaries of the zone. There are a total of 14 categories of qualified employees. The value of the incentive for the hiring credit totals 50% of an employee's wages in the first year, 40% in the second year, and declines by 10% increments through the fifth year. The maximum value per qualified employee hired is approximately $34,000 over the five-year term. Although workers can be paid more, the maximum value upon which an employer can claim a credit is 150% of minimum wage. www.hcd.ca.gov/fa/cdbg/ez/tax_pub_links
Enterprise Zone Income Tax Credit for Sales Tax Paid
A business operating in an enterprise zone is eligible to receive an income tax credit equal to the sales and use tax paid up to the first $1 million of machinery or parts purchased for use within the enterprise zone.www.hcd.ca.gov/fa/cdbg/ez/tax_pub_links
Accelerated Write-off of Certain Machinery and Equipment Cost
A business may expense up to 40% of the costs of certain property (personal property, equipment, and furnishings) acquired for use exclusively in an EZ business.www.hcd.ca.gov/fa/cdbg/ez/tax_pub_links
Enterprise Zone Act Bid Preference
A 5% state contract bid preference for commodities and services is awarded on contracts valued at more than $100,000, if the business is located in a designated EZ, and 50% of the labor on commodities contracts or 90% of the labor on services contracts is performed at the EZ worksite. An additional 1% to 4% preference is awarded for utilizing specified percentages of people from an EZ. www.pd.dgs.ca.gov/edip/eza.htm
