I was recently quoted in the September issue of the EnVision Newsletter, written by BoNiha Lee, The article made some excellent points and I wanted to share them with you.  Portions of the article and my quotes are below:

“The primary benefit associated with enterprise zones are tax credits for hiring eligible employees, said Steven Dotan, president and CEO of C&I Tax Consultants of Los Angeles. Dotan and his company work as consultants for both businesses and accountants throughout California.

“It’s a dollar-for-dollar tax credit for every qualified employee they hire,” Dotan said. “Not all employees qualify, but enough of them will. You’re talking about a fair enough money for any company.”

The credit is based on a percentage of the employee’s wages over the first five years of their employment. In the first year of employment, 50 percent of an employee’s wages can be claimed. The amount decreases by 10 percent every year after that for five years.

Another great incentive is the sales or use tax that helps businesses get the sales tax back on purchases of machinery. The credit can be used on items such as computers and telephones.

“It’s a good tool, because it can knock off your taxes,” Dotan said. “You’re still gathering credits and offsetting your income and offsetting costs.”

Many businesses do not take advantage of the credits because they either don’t understand how it works, do not have an accountant who knows enough about it to help, or think there is too much work associated with it to see a benefit, according to Dotan and economic development offices.”