Enterprise Zone
Stanislaus Enterprise Zone
Areas of Modesto have been
designated as an Enterprise Zone (EZ) by the Governor of
California through The Housing &
Community Development Department. Being in
the EZ provides businesses with tax incentives offered by the
State to aid economic growth and enhance the community.
Are You In The Zone?
Effective November 16, 2005 - 2020
Read:
EZ Letter of Date Designation
Modesto encourages economic and community development and the
maintenance of a business-friendly climate. See if your
facility or business falls within the
boundaries of the EZ by viewing this link to
Modesto Street Ranges. The
TEA
address listing is also available here.
Who Qualifies??
-
Existing and expanding businesses within the zone
-
New businesses
locating within the zone
What are the incentives?
The following incentives are available through the
State of
California, from which the following summary was
obtained (Printable
Fact Sheet):
Hiring Tax Credits
EZ businesses can earn up to $31,574 in State tax credits
for each qualified or
voucher employee hired over a five-year
period. Refer to
The Alliance for information about
eligibility criteria to determine whether an employee
qualifies for this credit. Alliance staff
can also be reached at (209) 523-ZONE (9663).
Sales & Use Tax Credits
EZ businesses may receive the sales or use tax credit for
the purchase of manufacturing or processing machinery, data
processing and other
equipment used in the EZ. Individuals, partnerships,
subchapter S corporations, and limited liability companies
can claim a credit on the first $1,000,000 of qualifying
purchases per year, while corporations can claim credit on
the first $20,000,000 of purchases per year.
Business Expense Deduction
Up front expensing of certain depreciable property can be
claimed.
Preference Points
EZ businesses can earn preference points on state
contracts.
Operating Loss Carryover
Up to 100% of the Net Operating Loss may be carried
forward for up to 15 years.
Net Interest Deduction
Lenders to EZ businesses may receive a net interest
deduction.
Unused Tax Creditss
Unused tax credits can be applied to reduce future tax
liability.
In addition to the incentives offered from the State of
California, Modesto offers the following incentives:
Local Incentive Zone
Expanding businesses zoned for manufacturing or business
park uses may be eligible for rebates. For more information
refer to
CFF Deferral
Businesses constructing new facilities may be eligible
for a deferral of the CFF fee and contract for a payment
schedule over a 10 year period. For more information refer
to
CFF Deferrals
For more information regarding the Stanislaus Enterprise
Zone please call (209) 571-5566.
This page was updated on: Monday, June 22, 2009 11:23:12 AM |
