EXCISE TAX REFUND
Stanislaus County Enterprise Zone
The Stanislaus Enterprise Zone encompasses an area of approximately 67,000 acres and includes parts of Modesto, Ceres, and Turlock, as well as tracts of unincorporated areas in Stanislaus.
Goals of Stanislaus Enterprise Zone
• Business retention and expansion in geographic areas of Stanislaus County where economic conditions are not optimal.
• Business attraction to these same geographic areas.
• Help for low-income and disadvantaged residents in finding and retaining jobs; including the unemployed, victims of layoffs, and public assistance recipients.
Stanislaus Enterprise Zone Benefits
The State offers several tax credits, deductions, and incentives that reduce the cost of hiring new employees and investing in equipment within the EZ. These credits, deductions, and incentives apply during the fifteen-year life of the EZ. The Stanislaus County Economic Development and Workforce Alliance provides assistance to business and job seekers in targeted employment areas.
Credits, Deductions, and Incentives
State Tax Credits
• Hiring Tax Credit
• Sales and Use Tax Credit
• Business Expense Deduction
• 15 Year Net Operating Loss
• Net interest deduction
Modesto-only Incentives
• Local Incentive Zone rebates
• CFF Deferral Program
Alliance Assistance
• Business Assistance
• Job Placement Assistance
• Eligibility Screening
• Fast Track Permitting
Eligibility
All tax-paying businesses located within the Zone automatically qualify for California Enterprise Zone benefits; whether they are proprietorships, partnerships or corporations.
Vouchering (Hiring Tax Credit)
Vouchering is the process of screening and documenting new hires to determine if the employee qualifies a business for the Hiring Tax Credit. The Hiring Tax Credit is the only credit that requires a signed voucher by the requires a signed voucher by the If an employer hire new employees or is planning an expansion, this tax credit can save the employer thousands of dollars. By hiring “qualified” employees, employers can claim up to 50% of the employee’s wages in the first year of employment. The credit percentage decreases by 10% annually, phasing out after 5 years.
The credit applies to new hires and replacements due to turnover or expansion. It is based on the lesser of the following:
• The actual hourly rate paid to the employee; or
• 150% of the California minimum wage.
The California Housing and Community Development Department has a $10 filing fee per voucher. In addition, there is a $40 local processing fee per person referred for eligibility and vouchering.
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