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.

City of Delano Enterprise Zone: The City of Delano Enterprise Zone was first established in 1991. In November 2006, Delano received conditional approval for a new, expanded Enterprise Zone that now includes all businesses within the City limits and some County unincorporated areas.

The major benefits of the Enterprise Zone program are the tax savings on California business income tax. These include:

• Sales or Use Tax Credit: A tax credit against the purchase of new manufacturing, assembly, data processing or communications equipment equivalent to the amount of sales or use tax, or up to $1.35 million annually.
  
• Hiring Tax Credit: A tax credit on up to 50 percent of the wages to qualified new employees over a five-year period (up to 50 percent in the first year, 40 percent in the second year, etc.). Effective January 1, 2008 the maximum credit will be over $37,000 per employee.
  
• Accelerated Depreciation Deduction: The option to accelerate depreciation on business property. A business may treat 40 percent of the cost of qualified property as a business expense in the first year it is placed into service for a maximum deduction of $20,000 per year, whichever is smaller.
  
• Loss Carry Forward: All net operating losses may be carried forward as a deduction for fifteen years.
  
• Net Interest Deduction for Lenders: Allows lenders a deduction on the net interest earned from loans made to Enterprise Zone businesses.
  
• Qualified loans include business loans, mortgages and loans from noncommercial sources.
  
• Preference on State Contracts: Enterprise Zone businesses receive special points when bidding on State contracts.
  

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.

Bakersfield is a large city at the southern end of the San Joaquin Valley in Kern County, California, United States. It is one of the fastest-growing large-population cities in the USA, and is located roughly equidistant between Los Angeles and Fresno, 110 miles (180 km) to the south and north respectively. As of 2008, the population was estimated at 328,692 within the city limits, making it the 11th largest city in California and the 58th largest city in the United States according to U.S. Census estimates.

The Bakersfield Metropolitan Statistical Area (MSA) has a population of 780,711, making it the 65th largest metropolitan area in the country. It is California’s third largest inland city, after Fresno and Sacramento. The city’s economy relies on agriculture, petroleum extraction and refining, and manufacturing. Bakersfield is also the 11th fastest growing city in the United States with a population of over 100,000, and the fastest growing city in the United States with a population of over 250,000.

If you have a business in Kern, please click here to contact us and see what tax credits you can take advantage of.

As of the census of 2000, there were 12,956 people, 3,010 households, and 2,645 families residing in Arvin, CA. The population density was 2,695.9 people per square mile (1,040.0/km²). There were 3,145 housing units at an average density of 654.4/sq mi (252.5/km²). The racial makeup of the city was 45.04% White, 1.08% Black or African American, 1.46% Native American, 1.10% Asian, 0.12% Pacific Islander, 46.55% from other races, and 4.65% from two or more races. 87.53% of the population were Hispanic or Latino of any race.

There were 3,010 households out of which 63.2% had children under the age of 18 living with them, 67.7% were married couples living together, 13.7% had a female householder with no husband present, and 12.1% were non-families. 9.5% of all households were made up of individuals and 5.4% had someone living alone who was 65 years of age or older. The average household size was 4.28 and the average family size was 4.51.

In the city the population was spread out with 40.0% under the age of 18, 12.8% from 18 to 24, 28.8% from 25 to 44, 12.5% from 45 to 64, and 5.8% who were 65 years of age or older. The median age was 23 years. For every 100 females there were 111.0 males. For every 100 females age 18 and over, there were 108.3 males.

The median income for a household in the city was $23,674, and the median income for a family was $24,816. Males had a median income of $20,506 versus $17,684 for females. The per capita income for the city was $7,408. About 30.9% of families and 32.6% of the population were below the poverty line, including 37.6% of those under age 18 and 23.1% of those age 65 or over.

The State designated Agua Mansa Enterprise Zone is located at the center of one of Southern California’s transportation hubs- served by Interstate 10 and 215, as well as the 91 and 60 freeways. The Zone is also conveniently located near three international airports, class-1 railroads, major trucking terminals and within close proximity to the ports of Long Beach and Los Angeles.

The Agua Mansa Enterprise Zone offers expanding or relocating businesses State tax credits and various local government incentives.

Enterprise Zone advantages and incentives include:

• 100% Net Operating Loss (NOL) carry-forward for up to 15 years.
• Firms can earn $26,894 or more in State credits for each qualified employee hired.
• Corporations can earn sales tax credits on purchases of up to $20 million per year for qualified machinery and machinery parts.
• Up-front expensing of certain depreciable property.
• Lenders to Zone businesses may receive a net interest deduction.
• Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment.
• Enterprise Zone companies can earn preference points on State contracts.

WOTC is a Federal credit that provides you with a dollar for dollar tax credit of:

• $2,400 for each new adult hire;
• $1,200 for each new summer youth hire,
• $4,800 for each new disabled veteran hire, and
• $9,000 for each new long-term family assistance recipient hired over a two-year period.

Employees can qualify based on any one of nine target groups.

There are strict requirements for submitting paperwork to qualify employees for the credit. Contact C&I now to sign up for this valuable credit.

San Diego County lies just north of the Mexican border—sharing a border with Tijuana—and lies south of Orange County. It is home to miles of beaches, a mild Mediterranean climate and 16 military facilities hosting the United States Navy, the United States Coast Guard and the United States Marine Corps.

San Diego’s economy is largely composed of agriculture, biotechnology/biosciences, computer sciences, electronics manufacturing, defense-related manufacturing, financial and business services, ship-repair and construction, software development, telecommunications, and tourism. The presence of the University of California, San Diego (UCSD) with the affiliated UCSD Medical Center promotes research in biotechnology.

If you have a business in the San Diego area, contact us for a free consultation on how you can take advantage of the California State Enterprise Zones.

Here’s to a Happy and Prosperous 2009 from the entire team here at C & I Tax!

Wilmington, California is a neighborhood of Los Angeles, with industry as its primary economic activity. It lies adjacent to the Port of Los Angeles, San Pedro, and Harbor City. Wilmington is the site of Banning House and Drum Barracks, or Camp Drum, the only major American Civil War landmark in California.

This beautiful city is also home to a California State Enterprise Zone, so if you have a business operating in this area, contact us to see if you qualify for corporate tax credits.

In September 2006, the cities of South Gate and Lynwood, applied to the State of California for an Enterprise Zone designation. This is a competitive process and on November 3, 2006, the cities of South Gate and Lynwood were awarded conditional designation. The City of South Gate was also authorized to receive and process applications from eligible businesses located within the Enterprise Zone area.

WHO IS ELIGIBLE?
Any individual or company operating a trade or business within the Enterprise Zone is eligible to participate in the program.

WHAT ARE THE BENEFITS?
The Enterprise Zone program may provide substantial tax savings for your business. There are five incentives available to taxpayers that invest in or operate a trade or business located within the Enterprise Zone. For additional information about each incentive, refer to the State of California Franchise Tax Board Publication: FTB 3805Z Enterprise Zone Business Booklet 2006 or call the Voucher Coordinator in either the City of South Gate or City of Lynwood.

The incentives are:

1) Hiring Tax Credit

2) Sales and Use Tax Credit

3) Business Expense Deduction

4) Net Operating Loss Carryover

5) Net Interest Deduction for Lenders and Bankers

WHAT ARE STATE HIRING CREDITS?

• A business within the Enterprise Zone boundary may reduce its State income tax by a percentage of the amount of wages paid to one or more qualified employee(s).
• A business/firm can claim up to 50% of an employee’s wages in the first year of employment. The credit percentage decreases by 10% annually, phasing out after five years.
• Approximately $31, 570 or more in State tax credits is potentially available per qualifying employee hired over a five-year period.