C & I is a group of tax consultants who assist with managing and supplying guidance regarding the California Enterprise Zone Tax Credits. This is a niche area of accounting that saves clients tremendous amounts of taxes. C & I deals directly with clients and subcontract with many accountants to do the Enterprise Zone credits for their clients.
Every year, the state of California gives out hundreds of millions of dollars in enterprise zone tax credits. C & I, the tax credit experts, can help you get these credits.
Below is the full letter from Mayor Newsom, discussing his new JOBS NOW! program.
October 27, 2009
Dear San Francisco Business,
I’m writing to tell you about JOBS NOW! – a powerful economic incentive program for all San Francisco businesses, regardless of industry, size or location. Funded through federal stimulus money secured by the City, JOBS NOW! offers your company a 100% wage subsidy for newly hired qualified employees through September 30, 2010.
Employers are required only to pay for payroll taxes, any fringe benefits that employees typically receive, and supervision of participants. To qualify for the JOBS NOW! wage subsidy, employees must be San Francisco residents with a minor child and have a family income of less than 200% of the federal poverty level in the last 30 days. Someone who was fully employed but recently lost their job more than a month ago is eligible.
The City has already identified hundreds of eligible job candidates who qualify for this program and could bring to your company a 100% wage subsidy for each candidate hired. Your firm can also recruit individuals you would like to hire and send them to the City to see if they are eligible for the wage subsidy. JOBS NOW! has no cap on the number of employees a business can receive a subsidy for and many of these hires may also qualify your firm for valuable state and local Enterprise Zone tax credits.
This is a once in a lifetime opportunity for San Francisco businesses to hire new employees and the City will reimburse you for 100% of their wages paid until September 2010. Many San Francisco businesses are already taking advantage of this program and I encourage you to do the same. Additional information on JOBS NOW! is attached.
If you want to want to learn more or take the next step, call the Office of Economic and Workforce Development at 415-554-6969 and ask about the JOBS NOW! program.
Sincerely,
Gavin Newsom
Mayor
City and County of San Francisco
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JOBS NOW! Subsidized Employment Program
Offering San Francisco Employers a Once in a Lifetime Business Incentive
Overview
All San Francisco businesses, regardless of industry, size or location, are eligible for the JOBS NOW! program – a 100% subsidy of qualified employees’ wages through September 30, 2010. JOBS NOW! is a subsidized employment program funded by stimulus dollars and administered by the San Francisco Human Services Agency (HSA). HSA will reimburse the cost of 100% of the wages paid to a newly hired JOBS NOW! qualified employee through September 30, 2010. Employers are required only to pay for payroll taxes, any fringe benefits that employees typically receive, and supervision of participants. Employers can hire qualified employees they’ve found themselves or leverage a pool of hundreds of JOBS NOW! pre-qualified eligible candidates from HSA.
Eligibility
All San Francisco employers, regardless of industry, size or location, are eligible so long as they hire JOBS NOW! eligible employees.
To qualify for the JOBS NOW! wage subsidy employees must be San Francisco residents with a minor child and a family income of less than 200% of the federal poverty level in the last 30 days. The level varies by household size but is about $3,000 per month for a family of three.
Someone who was fully employed but recently lost their job more than a month ago is eligible.
Someone who is currently employed but working less than 25 hours/week and under 200% federal poverty level is eligible.
Requirements
JOBS NOW! employees must be paid at least the local minimum wage and compensated at the same rate as other employees performing similar job functions.
Employers must comply with labor laws, contribute regular payroll taxes and comply with the City’s existing Health Care Security Ordinance.
Employers must be current on business and payroll taxes.
Employers are required to document and cover the cost of payroll taxes, fringe benefits, and supervision of JOBS NOW! employees.
Employer Reimbursement Process
Employer submits monthly documentation to HSA of all costs incurred related to the employment of a JOBS NOW! participant
HSA reimburses 100% of the wage costs
Reimbursement typically takes 2-3 weeks initially and 7-10 days thereafter
Remaining non-wage costs (payroll taxes, benefits, supervision) are the employer’s responsibility and cannot be paid for with federal funds or funds used to match federal funds
Next Step
If you want to want to learn more call the Office of Economic and Workforce Development at 415-554-6969 and ask about the JOBS NOW! program.
Santa Clarita wins top honors for cities with populations greater than 50,000, while Vernon wins for cities with less than 50,000 residents.
The Los Angeles County Economic Development Corporation (LAEDC) today announced the cities of Santa Clarita and Vernon as the winners of its annual “Most Business-Friendly City in Los Angeles County” competition at its 13th Annual Eddy Awards on November 17, 2008. The Eddy Awards are attended by more than 700 leaders from the business, government, and education communities.
The City of Santa Clarita emerged as the most business-friendly city in LA County for the cities with more than 50,000 residents. Santa Clarita does not assess a utility user tax, allowing businesses to save up to five percent or more on their electric, telephone, water, and gas bills, and it has recently been designated as a State of California Enterprise Zone. Santa Clarita offers its businesses and residents a highly educated workforce, available land for development, site selection assistance, and expedited plan reviews and permit processing.
This is a geographic area within the City of Santa Clarita that provides tax incentives to business to revive the local economy! Santa Clarita is located just 20 minutes north of Los Angeles. The Santa Clarita Enterprise Zone covers 97% of all commercial, business, and industrial zoned land within the City of Santa Clarita.
Merced County Supervisor, Deidre F. Kelsey, has responded to Dan Walter’s opinion of California’s Enterprise Zone program. The full text of his response is below:
Contrary to Dan Walters’ column (“It’s time for a hard look at California tax dodges,” Nov. 9) enterprise zones create jobs.
Proof is in the numbers: Since the designation of the Merced County Enterprise Zone in December 2006, 577 new jobs have been created.
These jobs are a lifeline for residents in Merced, many of whom face barriers to employment.
Merced County and its cities have typically struggled to attract new businesses and is an area that has been hard hit by the economic downturn. In September of this year, Merced County had a 15.7 percent unemployment rate, which is down from 20.2 percent in March 2009.
Our state desperately needs concrete economic development tools in order to remain competitive
We cannot afford to be short-sighted; we should not cut back programs that will fundamentally help us grow our economy and recover from the recession. Merced has seen first-hand the benefits of the enterprise zone designation.
Recent research has shown that enterprise zones increase employment, increase wage, salary and income levels, and decrease poverty rates. These are measurable benefits that are eagerly welcomed in our county.
The enterprise zone program represents an important investment in the future of Merced, and in the health of our state. We can no longer take for granted that businesses will locate in California and grow into a healthy and sustainable tax base.
We need to show that our cities and county are open for business, and the enterprise zone helps deliver that critical message.
Deidre F. Kelsey is chairwoman of the Merced County Board of Supervisors.
The State of California create the Enterprise Zone initiative in order to assist cities attract businesses, and one of the cities that have championed this opportunity was the City of Palmdale who received designation from the State for the Antelope Valley Enterprise Zone in February 1997. They encourage businesses both small and large to take advantage of a number of tax incentives through the Antelope Valley Enterprise Zone. Any company located within the boundaries of the 61-square-mile Enterprise Zone may reduce its state business income tax through five tax incentives.
This particular area is experiencing tremendous growth due to its proximity to Los Angeles combined with the low cost of living. And with the following five tax incentives, this particular enterprise zone is sure to see continued economic growth for years to come:
Hiring Tax Credit: Firms may earn up to $31,574 in state tax credits for each qualified employee hired over a five-year period.
Sales & Use Tax Credit: Corporations may earn sales tax credits on purchases of up to $20 million per year on qualified machinery or machinery parts used in the Zone. Partnerships and individuals may annually claim a credit on the first $1 million of qualifying purchases.
Business Expense Deduction: You may deduct up to $20,000 of the cost of qualifying business equipment, furniture and fixtures or other depreciable personal property.
Net Operating Loss Carryover: Up to 100 percent of Net Operating Loss may be carried forward for 15 years.
Interest Deduction for Lenders: Lenders to Zone businesses may deduct direct expenses incurred in making the loan from the interest income. This may mean more favorable rates or terms for the borrower.
So if you have a business or you’re a tax professional who has clients that run their companies in the Antelope Valley Enterprise Zone, contact us and let us help you take advantage of the tax credits available.
Dan Walters’ Nov. 9 column, “It’s high time for hard look at tax dodges,” questions the effectiveness of “enterprise zones,” yet evidence to the contrary points to the continued success of the program. Business owners large and small face the challenges of the cost of doing business, meeting payroll and ensuring a return on investment in a state with the highest state sales tax, the second highest state income tax and the second highest workers compensation rates in the nation. Simply put, the enterprise zone program is an investment in our state’s future.
A 2006 report to the Department of Housing and Community Development revealed that poverty decreased 7.35 percent more in enterprise zones, unemployment rates fell by 1.2 percent, household incomes grew 7.1 percent faster, and the wages and salary levels grew 3.5 percent more than the rest of the state. Hardly the signs of a “tax dodge” designed to give employers an incentive to do business in California.
Looking beyond the numbers, there are countless stories of businesses that have remained or expanded their California operations because of the enterprise zone program. Most recently, the Bayer manufacturing facility in Berkeley was on its way to the East Coast, but the expansion of the Oakland enterprise zone to include Berkeley persuaded Bayer to keep its operations and its 1,300 employees in the East Bay. Bayer now will invest more than $100 million in plant upgrades to manufacture a new drug to treat hemophilia.
The value of enterprise zones is clearly understood by local governments – there were 15 applications submitted to the Department of Housing and Community Development for four openings in the most recent round of designations. Rather than being viewed as a drain on local budgets, cities and counties compete through a rigorous and costly application process for an enterprise zone designation that will bring measurable economic development benefits to their communities.
Enterprise zones encourage economic growth and job creation, resulting in higher revenues for state and local budgets. The program puts people to work who face the greatest barriers to employment, reducing the strain on overburdened social service programs.
In the face of deep spending cuts, it is short-sighted to suggest elimination of the enterprise zone program. It is the cornerstone of our state’s economic recovery strategy and will lead the way to economic growth and expanded business activity in California.
At the FTB Advisory Board October meeting, we presented David Doerr, Chief Tax Consultant for the California Taxpayer’s Association, with a certificate of appreciation recognizing his 50 years of service to California taxpayers. / more+
540X Easy Reply Amended Return Pilot Program
We will soon begin a pilot program giving certain taxpayers the option of quickly concluding an audit when first contacted by us, if the taxpayer agrees with the proposed adjustments to their return. / more+
Useful Information Found on MyFTB Account – Tell your clients
MyFTB Account is a resource that’s available for your clients to access useful tax information 24/7. / more+
Documents, Second Mortgages, Tax Reporting – How to Handle a Foreclosed Home for Tax Purposes
In our July 2009, Foreclosure and Short Sales, and October 2009, Business Foreclosures or Short Sales, issues of Tax News, we addressed some of the questions we received related to a foreclosure. / more+
FTB/CSEA Liaison Meeting a Success
On September 25, we attended the California Society of Enrolled Agents (CSEA) annual Liaison meeting. / more+
540NR Booklet Mass Mailing Discontinued
We decided to discontinue the mass mailing of our Nonresident or Part-Year Resident Income Tax Booklet California 540NR directly to taxpayers. / more+
Small Business
Announcing the California Child Support Guide for Business
DCSS announces the California Child Support – A Guide for Business — a complete step-by-step web-based guide designed to help employers meet child support requirements in California. / more+
Ask the Advocate
Taxpayers’ Rights Advocate Role
As the Taxpayers’ Rights Advocate, I continue to be pro-active, visible, and accessible to taxpayers. / more+
Inside FTB
Take a look at the changes happening here at FTB. / more+
Criminal Corner
Our monthly summary on bringing tax criminals to justice, and closing the tax gap one case at a time. / more+
Businessowners:This free workshop will help local businesses to use the enterprise zone program to save money and jobs
WHAT:Senator Gloria Negrete McLeod, 32nd Senate District, in partnership with the San Bernardino Valley Enterprise Zone, will host a workshop to assist local business owners about the enterprise zone program.
The workshop will provide information about the tax credits and incentives available to businesses in the enterprise zone and share how they can encourage business growth and development.
Topics to be covered include:
Hiring credit
Sales and use tax credit
Business expense deduction
Net interest deduction for lenders
Net operating loss carryover
Senator Gloria Negrete McLeod chairs the Senate Business, Professions and Economic Development Committee.
“Part of my job as chair of the committee is to ensure that economic development programs that support small business are working effectively,” stated Senator Negrete McLeod.
The enterprise zone program is one of the only remaining programs in California that continues to support business growth in the state. By offering businesses cost reductions through tax credits and business incentives, the program helps companies save thousands of dollars annually, which allows them to maintain their ability to employ more people and keep much needed capital in the local economy.
WHEN:November 12, 2009
8:30 a.m. to 10 a.m.
WHERE:City of Colton, Gonzales Center
670 Colton Ave., Colton, CA 92324
For reservations and more information contact Wendy Clements at (909) 382.4100 (ext. 230), or
info@sbvez.com.
SPONSORS: The event is sponsored by the City of Colton, City of San Bernardino Economic Development Agency, County of San Bernardino Economic Development Agency and Inland Valley Development Agency. A continental breakfast will be provided.
San Joaquin County has been hit hard by the recession, however the city and many local businesses finally have a reason a celebrate this week. The reason for the celebration is the news that the State of California has approved the requested Enterprise Zone boundary expansion that the region has been requesting for the past year.
Considering that the county has been battling an unemployment rate of 15%, this Enterprise Zone expansion should help to bring jobs to the area due to the numerous tax breaks businesses can partake in by hiring local employees.
The Enterprise Zone offers many perks to spur growth and give residents jobs. Local businesses can earn more than $37,000 in state tax credits for each local employee they hire.
EXCISE TAX REFUND
