The City of Colton, incorporated in 1887, is an “American Classic” with a very colorful past and proud history. Strategically located in the heart of Southern California, Colton is at the crossroads of the Inland Empire. It boasts affordable housing, low business taxes, a wide range of community programs for all ages and a very responsive city government. Colton is a full service City with its own Police and Fire Protection, Water and Wastewater Facilities, as well as its own Electric Utility—the second oldest in the State.

If you have a business in Colton, please contact us to see if you qualify for several key California Enterprise Zone credits.

Strategically located in the heart of the fastest-growing region in the United States, California’s Inland Empire, the City of Colton encompasses approximately 18 square miles of fertile valley nestled against the scenic San Gorgonio Mountains. A comprehensive transportation network, a skilled, ready-to-work labor pool and a viable partnership between business and City Government contribute vitality to established commerce. Available sites and a “can-do” attitude toward economic development make Colton attractive for successful relocation and new enterprise. As we move forward, we continue to build on a solid foundation rich in history and long-standing community values. We’re a city moving ahead – with Confidence.

Colton has a well balanced and diversified economy and is home to a variety of manufacturing, service, retail and distribution companies including Con-Agra Milling; McNeilus Truck; Williams Furnace; Telco Food Products; Al’s Garden Art; U.S. Express; Jon-Lin, Inc.; Ashley Furniture; the new state of the art medical facility, Arrowhead Regional Medical Center; along with the largest group of RV Dealers west of the Mississippi River.

If you operate a business in the city of Indio, CA, you most likely have access to a wide variety of tax credits to California’s State Enterprise Zone legislation.  See below for a full list of tax credits, and contact us directly for assistance on how to take advantage of this program.

EMPLOYER HIRING CREDIT
Business may reduce State of California Income Tax for a portion of the wages paid to qualified employees. The savings cover a five year period and can add up to $27,000 per employee. If the employee lives in the Targeted Employment Area (TEA) qualification is automatic and requires only a single form.

NOT OPERATING LOSS CARRYOVER
Losses incurred by Enterprise Zone Business may be carried over to years in which taxable income is earned.

SALES AND USE TAX CREDIT
A sales tax credit for new machinery and parts purchased by a Zone business is available.

NET INTEREST DEDUCTION FOR LENDERS
Net interest earned on loans to businesses located in the Enterprise Zone is eligible for the credits on the California Tax Return.

BUSINESS EXPENSE DEDUCTION
Certain property purchased for use in the Enterprise Zone may be deducted as a business expense in the first year it is placed in service.

BIDDER’S PREFERENCE
Enterprise Zone Business can receive a Bidder’s Preference of 5% when bidding on State of California contracts.

MANUFACTURER’S INVESTMENT CREDIT
To encourage investment in manufacturing equipment, the State of California offers a tax credit to taxpayers operating in the following SIC codes: 2000-3999.

CHILD CARE AND RIDESHARE TAX CREDITS
The State of California allows tax credits for employers who participate in child care rideshare programs.

Riverside County is a strategic location for business because of the many incentive zones throughout the county, the diverse and accessible transportation network and the high quality of life.

Coachella Valley  Enterprise Zone
The state-designated zone is a 56 square mile, 36,000+ acre area covering the cities of Indio and Coachella, along with the unincorporated communities of Thousand Palms, Thermal and Mecca. Numerous state tax incentives are available to businesses located within the zone

Recycling Market Development Zones
The Recycling Market Development Zones strive to attract businesses using recycled materials in their manufacturing process. The state has established a low-interest rate revolving loan fund which may be used for land acquisition, leasehold improvements, equipment purchases, and working capital for up to 75 percent of the project cost to a maximum of $2 million.

Redevelopment Project Areas
Riverside County has six redevelopment project areas including 37 sub-areas that encompass 61,016 acres throughout the county. The Redevelopment Agency utilizes tax increment and bond proceeds to finance public improvements, business assistance and housing in accordance with California Redevelopment Law. Businesses located within the project areas may qualify for construction of public improvements, tax rebates and fee assistance. In addition, the Agency provides assistance to improve, preserve and increase the supply of housing that is affordable to low- and moderate-income persons in all unincorporated areas of the county.

The redevelopment project areas offer a variety of opportunities for industrial, commercial, aviation and residential development, as follows:

• 1-1986
• I-215 Corridor
• Desert Communities
• Jurupa Valley Project Area
• Mid-County Project Area

March Air Reserve Joint Powers Authority
The joint use of March Air Reserve Base is opening up new opportunities for business development. The March Joint Powers Authority, comprised of representatives from the local jurisdictions of the cities of Riverside, Moreno Valley, and Perris and the County of Riverside, is planning reuse and joint use at March Air Reserve Base in western Riverside County. The March Joint Powers Authority is finalizing its redevelopment plans which will include new business development.

The Enterprise Zone Program targets economically distressed areas throughout California. Special state and local incentives encourage business investment and promote the creation of new jobs. The purpose of the program is to provide tax incentives to businesses and allow private sector market forces to revive the local economy.  Oroville is one of the few communities in the State that holds a designation for both a Recycling Zone and Enterprise Zone.

Enterprise Zones are state-designated economic development areas created to stimulate growth and create jobs and stimulate investments in local communities. Through tax incentives, hiring incentives, financial incentives, etcetera, the Enterprise Zone is designed to add to a business’s bottom line.

Oroville Enterprise Zone Hire Tax Credit
A qualified business may reduce state income taxes by the amount of wages paid to one or more qualified employees. The local Private Industry Council coordinates the eligibility verification for employers.

During the first year of employment, up to 50% of a qualified employee’s wages may be claimed against your California income tax liability. The credit percentage decreases by 10% annually. The employer’s deduction for wages must be reduced by the amount of the credit claimed.

The hiring tax credit calculation is based on the lesser of:

• The actual hourly wage paid; or
• 150% of the California minimum hourly wage, i.e. $8.00 x 1.50 – $12.00.

Employees must spend at least 90% of their work time on activities directly related to the conduct of business in the enterprise zone and perform at least 50% of the work within the zone boundaries.

Oroville Enterprise Zone Sales and Use Tax Credit
Businesses located in the Enterprise Zone may reduce state income taxes by the amount of sales or use tax paid on certain machinery purchased for exclusive use within the Enterprise Zone.

To qualify for the credit, the machinery must be used to manufacture, process, combine or otherwise fabricate a product; produce renewable energy resources; or control air or water pollution. Data processing and communication equipment are also qualified property.

Individuals and Partnerships may claim a credit equal to the tax paid on the first $1 million of machinery costs.

Corporations may claim a credit equal to the tax paid on the first $20 million of machinery costs. Special rules apply for S-Corporation shareholders.

Oroville Enterprise Zone Business Expense Deduction
Businesses operating within the Enterprise Zone may elect to treat 40% of the cost of qualified property as a business expense. The maximum deduction in the Oroville Enterprise Zone is $20,000. Therefore, this particular provision is only of benefit to C-Corporations.

Oroville Enterprise Zone Net Operating Loss Carryover
If a net operating loss is generated by a business that operates within the Enterprise Zone, 100% of the loss may be carried forward for up to 15 years.

Oroville Enterprise Zone Net Interest Reduction for Lenders
Lenders who loan money to an Enterprise Zone business can take a deduction for the net interest earned (interest earned less direct expenses) on the loan.

The types of loans that qualify for this deduction include: business loans, mortgages, and loans from non-commercial sources.

To Qualify for the Loan Interest Earned Deduction:

• The loan must be made to a trade or business located solely within the boundaries of the Enterprise Zone.
• The Loan proceeds must be used strictly for the business activities within the boundaries of the Enterprise Zone.
• The lender cannot have an equity or other ownership interest in the business.

Santa Clarita is the fourth largest city in Los Angeles County. The California Department of Finance estimated the city population as of January 1, 2008 at 177,045. Including unincorporated areas of the Santa Clarita Valley, the population is estimated at over 275,000. It is located about 35 miles northwest of downtown Los Angeles, and occupies most of the Santa Clarita Valley. It is a notable example of a U.S. edge city or boomburb. The FBI rates it as the sixth safest city in the United States with at least 100,000 inhabitants. (Nearby Simi Valley and Thousand Oaks, in Ventura County, traditionally alternate between the first and second spots on the list.) Santa Clarita is ranked as one of the top 100 places to live by Money.

Santa Clarita’s most notable attractions are the Six Flags Magic Mountain amusement park located just outside the city limits in unincorporated Los Angeles County, and the California Institute of the Arts (CalArts), located in Valencia.

If you have a company in this area, you may qualify for the State’s Enterprise Zone tax credits.  To see if you qualify, click here.

Santa Ana, CA, has a rich commerce heritage. One of Santa Ana’s most notable businesses is the Rickenbacker musical instrument company, whose electric guitars and bass guitars earned fame in the hands of many rock and roll legends. Santa Ana is also the home of the First American Corporation and Ingram Micro, and the original Glenn L. Martin aviation company, which later merged with the Lockheed Corporation to form the largest aircraft and weapons manufacturing corporation on the planet, Lockheed Martin.

If you are joining the ranks of these prestigious companies in Santa Ana and want to see what types of tax benefits you can take advantage of, please contact us for a free consultation.

The Los Angeles Mid-Alameda Corridor Enterprise Zone encompasses the entire City of Huntington Park. On the October 15, 1986 the City of Huntington Park was designated as an Enterprise Zone by the State of California.  Businesses already in the Zone can qualify for benefits, as can new businesses relocating or expanding into the Huntington Park area.

Incentives

Incentives of the Enterprise Zone program include:

• Sales and Use Tax Credit:
  California income or franchise tax may be reduced by the amount of Sales or Use Tax paid on certain machinery purchased (for exclusive use in an Enterprise Zone).
  $1.45 million or more per year in tax credits is available for qualifying machinery.
• Hiring Credit:
  A qualified business may reduce its state income tax by the amount of wages paid to one or more qualified employee(s) over a five-year period. $23,400 or more in tax credits is available per qualified employee. Some of these employees may also qualify an employer for a Federal tax credit, Worker Opportunity Tax Credit (WOTC), of up to $2,100.
• Business Expense Deduction:
  Part of the cost of the certain property purchased for exclusive use in the Enterprise Zone may be deducted as a business expense in the first year it is placed in service. (Amount of deduction changes annually; call for current value).
• Net Operating Loss Carryover:
  Up to 100% Net Operating Loss (NOL) Carryover for individuals or corporations doing business in the Enterprise Zone may be carried over for up to 15 years to reduce the amount of taxable income generated within the Enterprise Zone for those years.
• Net Interest Deduction for Lenders:
  A deduction from income is allowed on the amount of “net interest” earned on loans made to a trade or business located exclusively in the Enterprise Zone.

This is a great city to do business in, and on the October 15, 1986 the City of Huntington Park was designated as an Enterprise Zone by the State of California.  Businesses already in the Zone can qualify for benefits, as can new businesses relocating or expanding into the Huntington Park area.

What specific Incentives for businesses operating in this zone?

Incentives of the Enterprise Zone program include:

• Sales and Use Tax Credit:
  California income or franchise tax may be reduced by the amount of Sales or Use Tax paid on certain machinery purchased (for exclusive use in an Enterprise Zone). $1.45 million or more per year in tax credits is available for qualifying machinery.
• Hiring Credit:
  A qualified business may reduce its state income tax by the amount of wages paid to one or more qualified employee(s) over a five-year period. $23,400 or more in tax credits is available per qualified employee. Some of these employees may also qualify an employer for a Federal tax credit, Worker Opportunity Tax Credit (WOTC), of up to $2,100.
• Business Expense Deduction:
  Part of the cost of the certain property purchased for exclusive use in the Enterprise Zone may be deducted as a business expense in the first year it is placed in service. (Amount of deduction changes annually; call for current value).
• Net Operating Loss Carryover:
  Up to 100% Net Operating Loss (NOL) Carryover for individuals or corporations doing business in the Enterprise Zone may be carried over for up to 15 years to reduce the amount of taxable income generated within the Enterprise Zone for those years.
• Net Interest Deduction for Lenders:
  A deduction from income is allowed on the amount of “net interest” earned on loans made to a trade or business located exclusively in the Enterprise Zone.

The City of Brawley is in the heart of the Imperial County, which is located in the s­outh­eastern part of the State of California. It is situated approximately 210 miles southeast of Los Angeles, 126 miles east of San Diego, and 30 miles north of Mexicali, Mexico. Brawley is a general law city incorporated in 1908 and has a Council Manager form of government. The 20­07 population is estimated to be 25,694 as reported by the State Department of Finance.

The city of Brawley has a wide range of business credits, if you have a company in the city, please contact us to see which credits you qualify for.

San Jose is the 3rd largest city in California, and the 10th largest in the US. It is the county seat of Santa Clara County. San Jose is located in Santa Clara Valley, at the southern end of the Bay Area, a region referred to as Silicon Valley. Once a small farming city, San Jose became a magnet for suburban newcomers in new housing developments between the 1960s and 1990s, and is now the largest city in Northern California. The United States Census Bureau population estimates the city’s population for 2007 as 939,899.

Companies located within the City of San Jose Enterprise Zone may be eligible to receive a tax credit for hiring individuals meeting certain qualifications. If you meet any of the following eligibility criteria you may qualify for the Enterprise Zone hiring credit.

If you want to explore the available tax credits you are entitled to, contact us directly for a free consultation.