Capitalizing on a Community's Resources
Northwest Business Park is pleased to be located within the State of California's Enterprise Zone. The California Trade & Commerce Agency established the Enterprise Zones as a means to stimulate growth and development for businesses located in targeted areas within California. The California Enterprise Zone Act provides businesses located in any of the state’s 42 enterprise zones significant tax savings. These credits and incentives allow businesses an opportunity to contribute to economic revitalization by offering them related credits and incentives. purpose of these benefits is to stimulate business investment and job creation for qualified disadvantaged individuals in state-designated economically distressed areas. Enterprise Zone companies are eligible for substantial tax credits and benefits including:
Hiring Tax Credit
Firms can earn up to $37,440 or more in state tax credits for each qualified employee hired.
Business Expense Deduction
Depreciable tangible personal property may be deducted as a business expense in the first year it is placed in service for exclusive use in the Enterprise Zone.
Sales Use or Tax Credit
Corporations can earn sales tax credits on purchases of qualified machinery and machinery parts.
Net Interest Deduction for Lenders
Up front expensing of certain depreciable property. Lenders to zone businesses may receive a net interest deduction.
Net Operating Loss Carryover
Up to 100% Net Operating Loss (NOL) carry-forward may be carried forward 15 years.
Research and Development Credit
Specific tax credits may be available to qualifying R & D based business.
Enterprise Zone companies can earn preference points on state contracts.
For more detailed information and to see if your business qualifies for this tax incentive program, please visit the following links: