Enterprise Zone Tax Credits
Unparalleled Experience Handling Enterprise
Zone Tax Credits
KUHLER'S understanding of the Enterprise Zone (EZ) Tax Credit program is unmatched in the industry. We've earned the respect of the Franchise Tax Board as one of the most respected EZ specialists in the state of California. This gives our clients valuable financial results from frequently changing policies – results that are more easily defensible.
The Stakes
Enterprise Zone Tax Incentives are critically important to bolstering hiring and investment in areas of the state hit hardest by the economic downturn. These incentives also represent substantial tax benefits to companies of any size operating within the ever-changing EZ boundaries. Most companies "in the zone" can realize very meaningful state income tax credits in the form of new revenue that can go straight to the bottom line, or be used to a company's strategic advantage.
Enterprise Zone Tax Credits Overview
The Enterprise Zone tax credits are known as location based tax credits as provided by the state of California, and currently there are 42 zones located throughout the state. The tax credits are on a declining scale of benefits over a five year period up to 37 thousand dollars if the employee stays employed for that period of time. The calculation is different if employment ceases earlier. There is also an available sales and use tax credit for businesses on qualified purchases of specific equipment. The value of the hiring/sales tax credit is that the tax incentives and credits are a dollar for dollar offset against the state income taxes paid by both the corporation and in some cases the business owner.
KUHLER can recover paid in taxes from the state statute period of four years, and constantly maintains the tax credit flow to future tax year liability through their proprietary tax credit software calculation system. KUHLER also constantly monitors every available hiring/sales tax credit dollar available to our clients that are placed on future tax returns by working with your accountants and CPAs to ensure maximum usage.
