Richmond offers businesses a great opportunity to operate and if you have a company inside this region, there may be sizable tax breaks for you through the enterprise zone tax credits. The following is a summary of the five main tax incentives within the Enterprise Zone Program:

Hiring Credit

Hiring Credit for 50% of first year wages paid to qualified new employees; over a five-year period, this credit can exceed $26,000 per new hire.

Sales and Use Tax Credit

Sales and Use Tax Credit for sales and use tax paid on qualified equipment purchased for use within the zone – up to a $1 million of machinery cost on individual claims; up to $20 million a year on corporate claims.

Business Expense Deduction

Business Expense Deduction for the costs of certain tangible, depreciable property up to a range between $20,000 and $40,000 in the first year placed in service.

Net Operating Loss Carryover

Net Operating Loss Carryover to future tax years to reduce the amount of taxable zone income.

Net Interest Deduction for Lenders

Net Interest Deduction for Lenders making loans in the zone; lenders can deduct net interest income made on loans to trade or business located in the enterprise zone including business loans, mortgages and loans from non commercial sources.

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This entry was posted on Wednesday, December 3rd, 2008 at 5:16 am and is filed under Enterprise Zones, Featured Zone. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.