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.

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.

Long Beach is a large city located in southern California, USA, on the Pacific coast. It is situated in Los Angeles County, about 20 miles (30 km) south of downtown Los Angeles. Long Beach borders Orange County on its southeast edge.

Long Beach is the 34th-largest city in the nation and the fifth-largest in California. As of 2008, its estimated population was 492,642. In addition, Long Beach is its county’s 2nd largest city after Los Angeles, and also the largest city nationwide that is not a county seat.

The Port of Long Beach is one of the world’s largest shipping ports. The city also has a large oil industry; oil is found both underground and offshore. Manufacturers include aircraft, automobile parts, electronic and audiovisual equipment, and home furnishings. It is also home to headquarters for corporations such as Epson America, Molina Healthcare, and Scan Health Plan. Long Beach has grown with the development of high-technology and aerospace industries in the area.

On November 3rd 2006, California Governor Arnold Schwarzenegger announced that the City of Compton was one of 23 communities to receive a State Enterprise Zone Program. The state awarded the Enterprise Zone designations on a competitive basis. Compton’s application ranked 8th of the 25 applications approved for a California Enterprise Zone.

Compton invested thousands of hours of staff time, creative energy and knowledge, and paid out thousands of dollars for consulting support and environmental studies to prepare the EZ application. When completed the City’s application consisted literally two telephone books of documents, tables, GIS maps and other documentations required by the state for the City to have a responsive application. The City believes that the investment in securing the designation and developing a Compton Enterprise Zone Program will generate significant returns in the form of:

1. Business and industrial expansion and growth,
2. New businesses and industry cluster attraction,
3. Jobs and job opportunities for Compton residents ,and an
4. Infusion of new private sector equity capital and financing for Compton businesses.

The City of Palmdale received designation from the State of California for the Antelope Valley Enterprise Zone in February 1997. Whether your company is a small, family-run business or a large corporation, you may 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.

• Hiring Tax Credit
  
• Sales & Use Tax Credit
  
• Business Expense Deduction
  
• Net Operating Loss Carryover
  
• Interest Deduction for Lenders

The San Francisco Enterprise Zone Tax Credit is a credit against the San Francisco Payroll Expense Tax for new jobs created on or after January 1, 1992, pursuant to the San Francisco Payroll Expense Tax Ordinance, Section 906A, of the Business and Tax Regulations Code. It encourages business investment and provides an incentive for the creation of new jobs for targeted groups in economically distressed locations, known as the Enterprise Zone areas.

Who is eligible for the Enterprise Zone Tax Credit?
Any business or employer, as defined under Section 6.2-5 of the San Francisco Common Administrative Provisions, Business and Tax Regulations Code, shall be allowed a credit against the Payroll Expense Tax for creating new jobs and hiring qualified employees working in designated Enterprise Zone areas.

How much is the amount of the Enterprise Zone Tax Credit?
The tax credit, for each qualified employee, shall be a varying percentage of the additional tax that would be incurred as a result of additional wages paid for work performed within the Enterprise Zone areas. The dollar amount of such tax credit shall depend both upon the duration of employment (see below) and eligible wages.

Duration of Employment Tax Credit
First 24 months 100%
Second 24 months 50%
Third 24 months 25%
Fourth 24 months 15%
Fifth 24 months 10%

In no event shall the tax credit reduce a business’ tax liability to less than zero. For an example of how the Enterprise Zone Tax Credit is calculated, read the instructions for Column F on page 3 of the attached “Instructions For Completing the 2004 Enterprise Zone Tax Credit Worksheet.”