What is an Enterprise Zone?

Enterprise Zones were created in California in the 1980’s to stimulate business investment in areas traditionally slow in obtaining their share of private investment dollars and to increase jobs opportunities in areas of high unemployment. The legislative purpose of the Enterprise Zone Program is to “stimulate business and industrial growth in the depressed areas of the State.” Additionally, the program was established to help attract business and industry to the state, to help retain and expand existing state business and industry, and to create increased job opportunities for all Californians. San Diego is home to one of 42 Enterprise Zones statewide.

What are the Enterprise Zone Incentives?

  • California income tax credits for hiring workers that work in an Enterprise Zone and live in Target Employment Areas. Each qualified employee can equate to approximately a $37,000 tax savings over 5 years for your business.
  • A tax credit against the purchase of new manufacturing, assembly, data processing or communications equipment equivalent to the amount of sales or use tax paid on the purchase.
  • Accelerated depreciation on equipment that you use in your business.

How can Considine & Considine help?

  • Identification of qualified businesses and employees
  • Vouchering
  • Credit calculations
  • Tax return preparation
  • Outsourced EZ services for CPA firms, attorneys, and real estate professionals

 

incentives chart