By working with a Long Beach accountant, you can learn about some amazing ways
that your California-based business can earn tax credits incentives. Some of the
best can be applied if your company is located in one of California's forty-two
Enterprise Zones. These are economically challenged areas where there is a
desperate need for businesses to come and set up and offer work to people from
the area, and in order to attract businesses to a Zone, Enterprise Zone credits
were put into place. In addition to a host of state-based Enterprise Zone
credits, your company may also qualify for federal hiring credits as well.
Hiring Enterprise Zone credits are available if you hire employees from
certain targeted groups. These may include disabled veterans with
qualifications, those who have been recently laid off or been threatened with
layoff, Native Americans, Pacific Islanders, summer youth hires as well as youth
and young adults from designated communities, qualifying ex-felons, people who
have recently been on food stamps, SSI or temporary assistance for needy
families, as well as other qualified youth. Each of these qualified employees
can earn your company that hires them up to $13,000 annually in Enterprise Zone
credits.
Other tax credits incentives are available as federal hiring
credits. WOTC California is the name of the program, and employees qualify based
on similar groups as for the state tax incentive. For WOTC California, your
corporation may earn anywhere from $2,400 to $4,800 per qualified employee.
Many of these hiring tax credits may be available to you for previous
years as well. If you realize that you could have qualified for them three years
or even more in the past, your accountant may file an amended return on your
company's behalf so that you can claim them. As well, if you want to carry over
your tax credits so that they are available for your use next tax season, this
may also be possible.
Other Enterprise Zone credits help your corporation
save energy. When you purchase hybrid and diesel-powered vehicles for business
use, your company may qualify for tax credits. If you install energy-saving
equipment or pollution-controlling equipment at your place of business, you may
then be able to claim Enterprise Zone credits and significant tax deductions.
Companies located in an Enterprise Zone may also qualify for sales and use tax
credits of up to ten percent of the purchase cost of research and development or
manufacturing and processing equipment, as well as energy conservation or water
or air pollution equipment.
You can discuss these and other tax credits
incentives with your Long Beach accountant, who can provide more information.
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