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Office of the City Manager

  • Enterprise Zone

  • State Incentives

    The state offers five tax credit incentives that reduce the cost of hiring new employees and investing in equipment in the Pasadena Enterprise Zone:  

    • Hiring Credit Program.  This five year state tax credit, potentially up to $37,000 per qualified employee, for full-time or part-time employees that meet one of the twelve qualifying criteria under the Hiring Credit Program. Potential criteria includes but not limited to: previously laid off due to plant closure or downsizing, military veteran, public assistance recipient, and resident of a targeted employment area. Enterprise Zone business must obtain a Hiring Credit Voucher from the Pasadena Enterprise Zone Office.
    • Sales and Use Tax Credit.  Allows Enterprise Zone businesses to claim a state tax credit equal to the sales and use tax paid on the purchase of qualified equipment. Qualified equipment includes assets such as manufacturing, data processing, office, audio/video, and computer equipment.
    • Business Expense Deduction.  Enterprise Zone businesses may deduct up to 40% of the cost of qualified property purchased for exclusive use in an Enterprise Zone during the first year it’s placed in service.
    • Net Operating Loss.  Enterprise Zone businesses may elect to carry forward 100% of their net operating loss for 15 years.
    • Net Interest Deduction for Lenders.  Lenders can earn a deduction from income on the amount of net interest earned on loans made to Enterprise Zone businesses. Businesses looking for an edge in applying for a loan should bring this credit up with your lender. 

    For additional information, click on Franchise Tax Board 1158 Publication

    Hiring Credit Application Process

    Pasadena Enterprise Zone business have until December 31, 2014 to submit any voucher applications for employees hired on or prior to December 31, 2013 for both the 1992 and 2007 Designations.
    Completed application consists of the following:

    • Enterprise Zone Hiring Tax Credit Voucher Application
    • Income Verification Form – only if submitting under Economic Disadvantaged category
    • Supporting Documentation
    • Copy of Targeted Employment Area Street Range page – only if submitting under Targeted Employment Area category

    Pasadena processing fee is $102 per application.  Please endorse check to “City of Pasadena” and mail to:

    City of Pasadena – Economic Development
    Attn: Melissa Alva
    100 North Garfield Avenue, 4th Floor
    Pasadena, CA 91101

     

  • NEW TARGETED EMPLOYMENT AREA RANGES

    The 2007 Designation Targeted employment area ranges may only be used only from April 10, 2007 until July 8, 2013. 

    The 2013 Targeted Employment Area Ranges may only be used from January 1, 2013 until December 31, 2013.
     



  • DISCLAIMER:   Facts and circumstances vary from business to business.  Please consult your tax professional about your particular situation.