Services
If you operate a business in one of California's many Enterprise Zones, you may be eligible for more tax benefits than you are currently receiving. CTG specializes in assisting California businesses, of all sizes, to received the maximum allowable benefit from the Enterprise Zone program. We will analyze your current tax situation, and examine returns of previous years, to ensure you get the maximum refunds to which you are entitled now and in future years. We handle all the researching and filing and only receive a fee when you receive a refund.
Enterprise Zone Hiring Tax Credits
Enterprise Zone Sales and Use Tax Credits
Federal Renewal Community Credits
Federal Empowerment Zone Credits
Research & Development Credits
Government Contract Opportunities
Net Interest Deduction for Lenders
Local Agency Military Base Recovery Areas Credits
ENTERPRISE ZONE HIRING TAX CREDITS
Firms can earn over $37,000 in state tax credits for each qualified employee. To qualify, employees only need to fit one of thirteen criteria, which include: residents of designated areas, veterans, Native Americans, government assistance recipients, ex-offenders, etc. Unused tax credits can be applied to future tax years.
ENTERPRISE ZONE SALES AND USE TAX CREDITS
Enterprise Zone companies may receive a sales tax and use tax credit for manufacturing or processing machinery, data processing and communications equipment and motion picture manufacturing equipment central to production and post production, to be used in the Zone. Individuals can claim a credit on the first $1,000,000 of qualifying purchases, while corporations can claim credit on the first $20,000,000 per year
FEDERAL RENEWAL COMMUNITY CREDITS
The Renewal Community employer wage tax credit enables Renewal Community businesses to hire employees who reside in the Renewal Community and work for that Renewal Community business. A 15% wage credit may be used for the first $10,000 in wages paid to a Renewal Community employee who performs substantially all of his or her services within the Renewal Community and for a Renewal Community business (at minimum, 85%). This amounts to $1,500 annually. Both full- and part-time employees may qualify.
FEDERAL EMPOWERMENT ZONE CREDITS
The Empowerment Zone employer wage credit provides an incentive to hire individuals who both live in the Empowerment Zone and work for an Empowerment Zone business. The wage tax credit is 20% of the first $15,000 in wages paid to an individual who resides in the Empowerment Zone and works for an Empowerment Zone business, or up to $3,000 yearly.
RESEARCH & DEVELOMENT CREDITS
Firms conducting experimental research may be eligible to claim credits on related expenses for both state and federal refunds.
NET INTEREST DEDUCTION FOR LENDERS
Interest earned on a commercial loan to a business located in the Enterprise Zone is California income tax exempt. A deduction from income is allowed on the amount of net interest earned on loans made to a business in the enterprise zone. Net interest refers to the full amount of the interest, less any direct expenses incurred in making the loan. Qualifying loans include business loans, mortgages and loans from noncommercial sources.
GOVERNMENT CONTRACT OPPORTUNITIES
Enterprise Zone companies can earn preference points on state contracts through filing the correct documentation.
NET INTEREST DEDUCTION FOR LENDERS
Interest earned on a commercial loan to a business located in the Enterprise Zone is California income tax exempt. A deduction from income is allowed on the amount of net interest earned on loans made to a business in the enterprise zone. Net interest refers to the full amount of the interest, less any direct expenses incurred in making the loan. Qualifying loans include business loans, mortgages and loans from noncommercial sources.
LOCAL AGENCY MILITARY BASE
RECOVERY AREAS CREDITS
Up to 100% Net Operating Loss (NOL) carry-forward. NOL may be carried forward 15 years. Firms can earn $31,544 or more in state tax credits for each qualified employee hired up to $2 million per year with a few provisions. Corporations can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts. Up-front expensing of certain depreciable property, up to $40,000 annually. Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment.
Los Angeles Office:
Tel. 213.746.2841
San Diego Office:
Tel. 858.412.6078
Visit our contact page
