California Enterprise Zone Program is Ending 12/31/13
The California Enterprise Zone Program will end December 31, 2013. This program was established in 1984 to stimulate business investment in depressed areas of the State and create job opportunities for Californians. It provides state tax credits to businesses in targeted areas if they purchase qualified equipment and/or hire qualified employees.
On July 11, 2013, SB 90 and AB 93 were signed into law (Governor Brown’s new three-part Economic Development Initiative), and will phase out and replace California’s 28-year old Enterprise Zone Program. This current year, 2013, will be the last tax year for businesses to engage in qualified purchasing and/or hiring; although qualified employees will continue to generate tax credits, and excess credits will be permitted to carry forward for up to ten years.
If you have previously filed taxes with Enterprise Zone status, be aware that 2013 will be your last year to take advantage of these tax credits.
If you have not filed before as a business located in an Enterprise Zone, and believe you may be eligible, contact us immediately at 559-924-1225. Most businesses in the Lemoore area are in the zone. We will verify if you are in a zone or not, evaluate your equipment and employee hiring, and give you some idea if your are eligible, and what credits you would be entitled to. If you are eligible, your tax returns for the past 3 years (2010 – 2012) should be amended and refilled giving you added state tax credits, and your 2013 tax returns should be filed with your Enterprise Zone status. Any unused credits can be applied to future state tax returns for up to 10 years!
