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Home My WebLink About22- Public Comment _ rteS1 + t#, k .tDi)�ht R��i . V woad �, a 10 to kA Hawaiioln ` Yip pA Gard . 1 "+ent t � r os Mali "., JGTC�N 103 ,;cgs 1r *< 1�r U p ri t Y9.PYC , a 7TH ST I ^1 _ C ... .' 22 -- 1 �t. Z7 '_ : .: WESTIb11NSTER AVM pac Beac _. �� SEAL BEACH Long Beach NAVAL WEAPONS & Seal Beach STATION Entertainment 1 C V O Cen#er N California's Enterprise Zone Pro ram y Nic Waldenmayer alifornias Enterprise Zone Pro- to Enterprise Zone businesses may be non- that employs a"qualified employee"within gram is a fantastic opportunity for taxable subject to special reductions. a designated Enterprise Zone.The hiring businesses to earn huge credits credit amount is$37,440 per employee gen- that offset California income and/or fran- Working in an Enterprise Zone erated over a five-year period.The credit chise taxes dollar for dollar.The Enterprise There are also potential tax planning op- calculation is limited to the lower of 150 Zone Program is authorized by the state portunities to consider when hiring em- percent of the state minimum hourly wage legislature to designate economically de- ployees and purchasing equipment.Your or the employee's actual wage. pressed areas of California as Enterprise offices or facilities don't have to be in an A"qualified employee'need not live in Zones.Anaheim,Santa Ana and Long Enterprise Zone,you need only have your an Enterprise Zone.An employee will Beach are all Enterprise Zones. employees work and/or your equipment qualify for the hiring credit if at the time of The program offers California tax cred- operate in an Enterprise Zone. hire the employee was: its and special incentives to encourage Construction contractors should get an Economically disadvantaged business investment,economic growth, analysis identifying job locations.Accord- Receiving Supplemental Security In- and the creation of new jobs.California ing to Article 2 of Chapter 17 of Part 11 of come(SSI) taxpayers who invest,operate,or locate a the California Revenue and Taxation Code, Receiving food stamps trade or business within an Enterprise if a business operates both inside and out- Receiving State/Local General Assistance Zone may be eligible for significant special side an Enterprise Zone,the business must Receiving refugee cash assistance tax credits or incentives. apportion its income to the Enterprise Native American,American Samoan, The benefits of the program include: Zones in which it operates to determine Native Hawaiian Hiring Credits—$37,440 or more in tax the amount of credits available. Enrolled in a Workforce Investment Act credits for each qualified employee hired The apportionment is based on two fac- (WIA)training program Sales Tax Credits—Corporations can tors,property and payroll both within and Physically challenged earn sales tax credits on purchases of up to outside the Enterprise Zone.If the business An ex-offender(recent conviction) $20 million per year of qualified machinery operates entirely within the Enterprise Receiving public assistance(Welfare) or equipment Zone,it can offset its entire California tax A Targeted Employment Area(TEA) Indefinite Carry Forward—Unused En- liability with Enterprise Zone tax credits. resident terprise Zone tax credits can be applied to A vocational rehabilitation client future tax years Qualifying for the hiring credit A Vietnam Veteran(8/5/64 to 5/7/75) Net Interest Deduction—Interest income The California Revenue&Taxation Code A recently separated veteran(within 48 received by lenders(including individuals) provides a state hiring credit for a business months of employment date) SCCA MAGAZINE SEPTEMBER-OCTOBER 2011 1 SCCAWEB.ORG IS A service-connected disabled veteran eligible for unemployment insurance,and is s A person who was laid off or received a unlikely to return to previous occupation layoff notice due to a permanent plant clo- Long-term unemployed(at least 15 of sure or substantial layoff(50 or more peo- the past 26 weeks)and facing significant ple affected within a one-month period) employment barriers. Formerly self-employed person,now To claim a Hiring Credit on your tax re- unemployed due to general economic con- turn,you must first apply to the local Enter- ditions or natural disaster prise Zone coordinator's office for a voucher Person who was terminated or laid off,is certificate for each employee.The applica- tion must include documentation specified What Can Pavement in the regulations that supports the claim that the employee meets one of the criteria. Recycling Do for You? Your tax preparer can submit the voucher certificate application on your behalf. • Pulverize your Existing Pavement for Spec.Base or Fill • Stabilize your Subgrade with Cement,Lime or Asphalt Emulsion Sales or use tax credit • Recycle your Existing Pavement On-site to Replace a Significant If you pay or incur Sales or Use Tax on cer- Portion of your New Pavement Needs tain qualified property used in an Enterpris • Value Engineer a Cost Saving Alternative that will Get You the Job Zone you may be eligible for a tax credit. All of these processes help you get for your project The property must be machinery or machin Save you time and money ery parts used for any of the following: Call us for a free site analysis and cost estimate 800.966.7774 or Fabricating,processing,assembling,or www.pavementrecycling.com manufacturing a product Producing renewable energy resources Controlling air or water pollution Data processing and communications equipment,including but not limited to computers,computer-automated drafting - systems,copy machines,telephone sys- tems,and fax machines For corporations,this credit is limited to the sales or use tax paid or incurred on " up to$20 million of qualified property I placed in service in the tax year.For all other entities,the limitation drops to$1 million of qualified property. Net interest deduction Interest earned on loans to a business lo- cated solely within an Enterprise Zone is J free from California tax.The money loaned must be used strictly for business activities fbY , within the Enterprise Zone.Net interest refers to the full amount of the interest,less any direct expenses in making the loan. I{ Nic Waidenmayer,CPA,MBA,MBT,is a Tax Manager with Glenn M.Gelman&Assoc ates,Certified Public Accountants and Busi- THE 1 TO SMART SOLUTIONS tress Consultants.He can be reached at(714' 667-2600 or www.gmgcpa.com. 16 SCCAWEB.ORG SCCA MAGAZINE SEPTEMBER-OCTOBER 2011