The thriving City of Long Beach offers an urban Enterprise Zone of over 41.4 square miles, encompassing thousands of businesses. If you have a company operating in this area contact us because it does not matter if your business is manufacturing or retail; large or small, the Enterprise Zone provides State tax credits that can enhance your business.

• Purpose: To provide targeted areas with a means to stimulate business and employment growth.
• Duration: 15 years, January 8, 2007 – January 7, 2022
• Area: Includes most of the City’s commercial and retail corridors and manufacturing centers.
• Eligibility: Any individual or company operating a trade or business within the Enterprise Zone is eligible for the program.
• Benefits: Companies located within the Enterprise Zone can save thousands of dollars on their business’s California income taxes.

So what are the incentives to operating a business in Long Beach?

Business Expense Deduction
Part of the cost of certain equipment, furniture and fixtures purchased for exclusive use in the Enterprise Zone may be deducted as a business expense as opposed to a capital expense.

Net Operating Loss Carryover
Up to 100% of a Net Operating Loss generated in an Enterprise Zone can be carried forward for up to 15 years. (Suspended for tax years 2002 and 2003)

Net Interest Deduction for Lenders
Lenders can deduct from net income the interest earned on a loan made to any business located solely in the Enterprise Zone.

Hiring Credit
Your company can receive over $37,400 in state tax credits over a five-year period, for each eligible employee. It is easy to find employees who meet the eligibility criteria if your company takes advantage of the Long Beach Career Transition Center employment services.

Sales and Use Tax Credit
Your business can claim a state tax credit equal to the sales or use tax paid on the cost of any of the following equipment purchased for exclusive use in the Enterprise Zone.

• Equipment used to manufacture, process, combine, assemble or fabricate a product.
• Data processing and communications equipment including computers, telephone systems, fax machines and copiers.
• Equipment used in motion picture production and post-production.
• Air and water pollution control devices.
• Equipment used to produce renewable energy resources.

Centrally located, Fresno is the financial, industrial, trade, and commercial capital in the Central San Joaquin Valley. This dynamic city is the hub of a region rich in heritage, resources, and people. The home for a diverse mixture of industries, businesses, agencies and institutions, Fresno offers an ideal location and the tools you need to build a successful business.

Businesses in the zone – from large manufacturing companies to small neighborhood restaurants – can significantly reduce their state income taxes by taking advantage of special California Enterprise Zone tax benefits.

Located within the Fresno Enterprise Zone borders are affordable manufacturing and commercial sites, as well as unique retail locations.  The zone is within immediate access of two freeways, two state highways, the Fresno Yosemite International Airport and the Downtown Chandler Airport.  It is also in close proximity to a wide range of educational facilities, housing and other amenities.  These assets add up to an increasingly powerful ability to assist current businesses and attract new companies, jobs and investments.

A business located within the Enterprise Zone can receive tax credits each time it hires an eligible employee or purchases qualified new machinery, equipment or pollution control devices.  Incentives are also available to many employees who work in the zone and lenders who make loans to qualified businesses.  Most businesses in the Enterprise Zone are automatically eligible for benefits.  There is no certification process.

Delano is a culturally diverse community and has long been regarded as an international community. Though the population is drawn from multiple origins, the citizens still have many things in common, including a strong sense of community and work ethic. Delano is strategically located along Highway 99, one of California’s primary north/south arteries.

Delano has been a California Enterprise Zone and has become a great destination for business owners looking to take advantage of the California EZ program.  If you have a company operating in this city, please contact us today to see what tax credits you are eligible for.

The City of Barstow is located in the Inland Empire North region of San Bernardino County, midway between Los Angeles and Las Vegas.  With Interstates 15 and 40, and highways 58 and 247 all converging in Barstow, the city is a major transportation corridor with more than 60 million people in 19 million vehicles traveling through Barstow each year. The city is home to an Amtrak depot at its Historic Harvey House.

Catering to the tourists is Barstow Outlet and Tanger Outlet Center which together boasts more than 100 outlet stores. Barstow offers all the major conveniences of small town living with the resources of major metropolitan areas only a short drive away.

If you have a company in Barstow, click here for a free consultation and tips on how to take advantage of the Enterprise Zone tax credits available to you.

Shafter is designated as a State Enterprise Zone, which makes a company investing in Shafter eligible for tax credits against their California corporate income tax liability. The two most important credits include a hiring tax credit on qualified employees which can amount to over $31,000 per employee over a five-year period; a sales/use tax credit on the first $20 million of new or used manufacturing equipment purchased each year.

Some equipment within certain warehouse/distribution centers may qualify for the sales tax credit. The specific details of the client’s operation will need to be reviewed with the Franchise Tax Board and they will need to make a determination on eligibility.

Other Benefits
15-year carryover of up to 100 percent of the net operating losses;
Expensing up to $15,000 of certain depreciable property;
Lender interest income deductions for loans made to zone businesses;
Preference points on state contracts.

Enterprise Zone Tax Credits
As a state designated enterprise zone, new and existing businesses may qualify for State tax credits, including:

Sales Tax Credit – California income or franchise tax may be reduced by the amount of sales and use tax paid on certain machinery purchased for use in the enterprise zone. The equipment must be used to manufacture, process combine or fabricate a product. The sales and use tax credit may be carried over to offset tax imposed in subsequent years.

Hiring Credit – A business may reduce taxes paid by up to 50% of the amount of wages paid to one or more qualified employees. These state credits are in addition to any federal tax credits. A qualified employee is a new hire that are participants in a qualified job development or training program. Business may earn credits of up to $24,000 per employee over a five year period.

Business Expense Deduction – Part of the cost of certain property purchased for exclusive use in an enterprise zone may be deducted as a business expense in the first year it is placed into service. The type of property qualifying for the credit is tangible personal property (not real estate) which is used for business purposes and is eligible for depreciation.

Net Operating Loss Carryover – Net operating losses (NOL) of individuals and corporations doing business in the enterprise zone may be carried over to future years to reduce the amount of taxable income generated in the enterprise zone and is determined by computing the business loss which results from business activity in the enterprise zone.

Manufacturers’ Investment Credit – The Manufacturer’s Investment Credit provides manufacturers a State Income Tax Credit of 6% of the purchase price of qualified property. The Credit may be carried over for up to 7 years from the date of purchase.

Areas of Modesto have been designated as an Enterprise Zone (EZ) by the Governor of California through The Housing & Community Development Department.  Being in the EZ provides businesses with tax incentives offered by the State to aid economic growth and enhance the community.

Who Qualifies?

• Existing and expanding businesses within the zone
• New businesses locating within the zone

What are the incentives?

Hiring Tax Credits
EZ businesses can earn up to $31,574 in State tax credits for each qualified or voucher employee hired over a five-year period.  Refer to The Alliance for information about eligibility criteria to determine whether an employee qualifies for this credit.

Sales & Use Tax Credits
EZ businesses may receive the sales or use tax credit for the purchase of manufacturing or processing machinery, data processing and other equipment used in the EZ.  Individuals, partnerships, subchapter S corporations, and limited liability companies can claim a credit on the first $1,000,000 of qualifying purchases per year, while corporations can claim credit on the first $20,000,000 of purchases per year.

Business Expense Deduction
Up front expensing of certain depreciable property can be claimed.

Preference Points
EZ businesses can earn preference points on state contracts.

Operating Loss Carryover
Up to 100% of the Net Operating Loss may be carried forward for up to 15 years.

Net Interest Deduction
Lenders to EZ businesses may receive a net interest deduction.

Unused Tax Creditss
Unused tax credits can be applied to reduce future tax liability.

In addition to the incentives offered from the State of California, Modesto offers the following incentives:

Local Incentive Zone
Expanding businesses zoned for manufacturing or business park uses may be eligible for rebates.  For more information refer to

CFF Deferral
Businesses constructing new facilities may be eligible for a deferral of the CFF fee and contract for a payment schedule over a 10 year period.  For more information refer to CFF Deferrals.

Porterville has the distinction of being one of California’s first Enterprise Zones.  Established in 1986, the Enterprise Zone allows for special state and local incentives to encourage business investment and promote the creation of new jobs.  The Enterprise Zone boundaries are roughly described as Highway 65 east to Plano Street, from Olive Avenue south to Gibbons Avenue. Companies located in the Enterprise Zone are eligible to receive the following tax credits and benefits:

• Hiring Credits
• Sales or Use Tax Credit
• Business Expense Deduction
• Net Operating Loss Carryover (NOL)
• Net Interest Deduction for Lenders
• Preference Points on State Contracts
• Preference Points on Industrial Development Bonds
• Expeditious processing of plans and permits
• 10 year, 0% payment plan for permits and development fees

This blog is dedicated to discussing the California Enterprise Zone program in detail, so we’re obviously bias on the benefits that these zones gives to businesses.  However this past week a new study by several leading USC professors reveal that the California Enterprise Zones are truly a bright spot for the State and can aid in re-building local economies.  This study took into account decades of economic data in the state and proves the program not only works, but also will continue to help the state and its citizens.

“If you’re going to eradicate a program, you need to evaluate it on the number of outcomes and we found these programs had a positive impact,” said Swenson, a professor at the USC Marshall School of Business and Leventhal research fellow, who is an expert on state taxation. “It’s the only program we have that gives tax breaks and in a time of economic downturn. The last thing you’d want to do is cut a program that increases jobs and decreases poverty.”

They’ve discovered statistical data illustrating that enterprise zone programs aid local economic sectors by creating jobs and increasing incomes, as well as reducing poverty and unemployment rates.

“For California, we found that enterprise zones increased employment by 2.2 percent and increased the fraction of houses with wage and salary income by 2.1 percent,” said Swenson, adding that the programs have had a positive effect for all categories in all states that have them.

Atwater is a progressive community when it comes to assisting and cultivating business. The City’s growing residential development is spurring commercial investment, construction, and services. Additionally the City has an established history of food processing, farming, and light manufacturing companies.

The City of Atwater has several programs to assist local businesses in being more prosperous, including:

• State of California Enterprise Zone Designation
• Foreign Trade Zone Designation
• Local Revolving Loan Fund
• Entrepreneur Training Program
• Access to business counseling and customer service training programs
• Recycling Market Development Zone Designation

If you have a business in the city of Atwater, contact us directly for a free Enterprise Zone consultation.

Located in California’s Central Valley, (Madera Population year 2000: 43,207. Estimated population in July 2006: 54,959) offers affordable small-town living on the periphery of a large metropolitan area (Fresno is 18 miles south). It’s a place where families can afford spacious houses and their kids can join 4-H or play sports a few blocks from home.

Madera is the home of Valley Children’s Hospital, one of the largest children’s hospitals in the U.S. Educational needs are served by the Madera Unified School District, featuring 20 schools; among them is a California Distinguished Elementary School. College courses and training are available through State Center Community College and CSU, Fresno.

If you have a business that operates in Madera, click here to contact us for a free consultation.