Move your production offices to Pasadena’s Enterprise Zone and receive the following benefits: Hiring Tax Credit: Claim 50% of your qualified employee’s wages (up to $9.37 per hour is claimable x 50% x the # of hours they worked) in their first year of employment. The credit percentage decreases by 10% annually. Sales or Use Tax Credit: Receive a credit for the full amount of the sales tax you paid on equipment needed for your business. For example, if you paid $1million dollars for new equipment and 8% sales tax, your tax credit would be 80,000 dollars (1 million x 8%). Business Expense Deduction: Write off 40% of the cost of qualified equipment in its first year of service. This can be written off as a business expense instead of a capital expense. Net Operating Loss Carry Over: 100% of your business’s net operating loss may be carried over 15 years, instead of 50 percent for 5 years as is California law for other businesses. Net Interest Deduction: This applies to lenders who are providing a loan to you. The lender may write off the net interest on your loan minus their expenses in making you the loan. Your Employees Also Receive a Tax Credit: Employees receive a tax credit of 5% of up to the first $10,500 wages earned each year.
If you have any questions, please feel free to email us.