What Is Enterprise Zone Credit?

January 31, 2020

If you run a business in California, you may be wondering about Enterprise Zone Credits. These tax credits are special opportunities offered through the Enterprise Zone Program. Created in 1984, this program can be a lucrative draw for businesses. However, taking full advantage can be challenging. If you are running a business in Encino, California, for example, you may need to find an Encino tax consultants office to help you.

What Does the Program Do?

The program lets businesses get tax credits for certain business activities within designated zones. These credits can include the following:

• Hiring tax credit
• Accelerated depreciation deduction
• Sales and use tax credit on qualified purchases

All these credits help businesses in the enterprise zones to keep more money. Lenders can also deduct net interest, helping them offer more competitive loans to businesses in the zones. The goal of this is to help boost business growth in areas of the state that need an extra push. With the help of those Encino tax advisors, your business may be able to save a lot of money on the tax bill.

Are You Eligible?

There are 42 Enterprise Zones within California. Zones may be a part of a major city, multiple cities or unincorporated territory. The expiration dates of zones vary, and the boundaries have changed multiple times. The best way to determine if you qualify is to contact your tax accountant. They will be able to give you specific information for your location, business and timing.

Learn More

Speaking with a tax consultant can help you take full advantage of Enterprise Zone Credits and other tax advantages that may be available to you. Whether you need San Francisco, Sacramento or Los Angeles tax preparation services, it is a good idea to get some professional help so that you can make the most of Enterprise Zone Credits. It could make a huge difference for your business’ bottom line.