EXCISE TAX REFUND
Featured California Enterprise Zone: Pasadena
The new Pasadena Enterprise Zone is significantly larger and covers both commercial and industrial zoned land within the City of Pasadena. In addition, the City of Pasadena offers local benefits to businesses located within the Enterprise Zone boundaries. Both the state and local benefits apply during the life of the Pasadena Enterprise Zone from April 10, 2007 until April 10, 2022. If you’re in the Pasadena area, contact us to see what tax credits you can take advantage of.
Find Out if you Are in the Zone
Step One: Are you located in the 1992 Designation, 2007 Designation or both?
Copy of overlay map
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If your business is only located in the 1992 Street Ranges, you can utilize the State Tax Credits from April 10, 1992 to April 9, 2007. If your business is only located within the expansion area, you can utilize the State Tax Credits from September 13, 1999 to April 9, 2007.
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If your business is only located in the 2007 Street Ranges, you can utilize the State Tax Credits from April 10, 2007 to April 10, 2022. If your business is only located within the expansion area, you can utilize the State Tax Credits from March 6, 2008 to April 10, 2022.
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If you are located within both the 1992 and 2007 Street Ranges, you can utilize the State Tax Credits from April 10, 1992 to April 10, 2022. Please note: you must file two separate Franchise Tax Board (FTB) 3805Z forms for your 2007 tax filing year.
Step Two: Does your business qualify for the local benefits offered through the City of Pasadena?
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If your business is located within the Enterprise Zone Business Development Area (EZBDA), your business qualifies for Building and Planning permit fee waivers. In addition, if you own a business, the City will waive your business license fee. Although fee waivers are permitted for businesses located within the EZBDA, business are still required to obtain required building and planning permits and business licenses from the City of Pasadena. Nonresidential property owners are excluded from receiving the business license fee waiver.
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If your business is located within the Enterprise Zone Technology Development Area (EZTDA) and if the land use is primarily used for scientific research (Research & Development Business) then your business qualifies for the Building and Planning permit fee waivers, as well as the business license fee waiver. To take advantage of this benefit, Research and Development businesses must obtain a letter from the Enterprise Zone Office first before applying for the fee waivers. Nonresidential property owners are excluded from receiving the business license fee waiver.
Business Incentives
Hiring Credit Program
This five year state tax credit, potentially up to $37,000 per qualified employee, for full-time or part-time employees that meet one of the twelve qualifying criteria under the Hiring Credit Program. Potential criteria includes but not limited to: previously laid off due to plant closure or downsizing, military veteran, public assistance recipient, and resident of a targeted employment area. Enterprise Zone business must obtain a Hiring Credit Voucher from the Pasadena Enterprise Zone Office.
- Targeted Employment Area Ranges for 2007 Designation
- 2007 Targeted Employment Area Map
- State Income Limits 2008 to 2000
Sales and Use Tax Credit
Allows Enterprise Zone businesses to claim a state tax credit equal to the sales and use tax paid on the purchase of qualified equipment. Qualified equipment includes assets such as manufacturing, data processing, office, audio/video, and computer equipment.
Business Expense Deduction
Enterprise Zone businesses may deduct up to 40% of the cost of qualified property purchased for exclusive use in an Enterprise Zone during the first year it’s placed in service.
Net Operating Loss
Enterprise Zone businesses may elect to carry forward 100% of their net operating loss for 15 years.
Net Interest Deduction for Lenders
Lenders can earn a deduction from income on the amount of net interest earned on loans made to Enterprise Zone businesses. Businesses looking for an edge in applying for a loan should bring this credit up with your lender.
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