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.
  

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This entry was posted on Friday, January 30th, 2009 at 4:55 am and is filed under Featured Zone. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.