Anaheim Enterprise Zone Credits

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On February 1, 2012, the State of California designated the City of Anaheim as eligible to receive Enterprise Zone Credits.

These credits provide tax incentives to businesses that are located in the specified Enterprise Zones.  There are currently 42  zones located in the State of California.  This program was established in 1984 to stimulate the economy in several depressed areas.

Anaheim will receive the designation for 15 years (through January 31, 2027).

There are several ways to receive the tax incentives.

1. Hiring Tax Credits – Businesses located within the Enterprise Zone that hire qualified individuals can earn up to $37,440 in state credits for each qualified employee hired.  These credits can be used to directly offset state income tax and can be carried over until used up.

2.  Sales Tax Credit – Companies can earn sales tax credits on the purchase of machinery and equipment.  The business will receive a state tax credit equal to the sales or use tax paid on up to $20 million per year of equipment purchased.

3. Interest Deduction – Lenders that loan money to businesses located in the Enterprise Zone are not taxed on the net interest income earned on the loan.  This can save of thousands of dollars in tax each year.

To find out if your business is located in the Anaheim Enterprise Zone, please click the following link.

www.anaheimchamber.org/anaheimez/boundaries.asp

If you would like more information about Enterprise Zone credits or to find out if your business is located in one of the 42 zones, please contact our office at (714) 836-8300.

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