Enterprise Zone (EZ) Tax Credits and Incentives

OVERVIEW
The Enterprise Zone program was established in 1984 to stimulate business investment in depressed areas of the State and create job opportunities for Californians. Today, businesses and workers both continue to benefit from the program.

TAX CREDITS AND INCENTIVES

CALIFORNIA STATE EZ PROGRAM

• More than $36,000 in hiring tax credits for each qualified employee hired over five years. MORE INFORMATION AND HOW TO APPLY.
• Sales and Use tax credits on purchases of qualified machinery and parts (phone equipment, fax machines, printers, manufacturing equipment, etc.)
• Accelerated expensing of certain depreciable property
• Up to 100% Net Operating Loss deduction and 15 year carry-forward
• Application of unused tax credits to future tax years
• Net Interest deduction for Zone business lenders

SF LOCAL EZ PROGRAM

• Payroll Tax Credit for businesses that have created new job jobs filled by individuals belonging to one or more of the following targeted groups: participants in a Workforce Investment Act (WIA) program or County Adult Aid Assistance Program, or those eligible or certified for the Workforce Opportunity Tax Credit. This is a ten year declining scale tax credit against the San Francisco Payroll Tax expense for new jobs created on or after Jan. 1, 1992.
• Several changes to the original ordinance were adopted in July 2008. For employees hired on or after July 30, 2008 the amended ordinance does not require creation of a new job and changed the qualifications of the employees in several ways. Please refer to the "EZ Payroll Tax Credit Exemption Information" booklet available in the download section of this page for details. To see if your business is located within the amended boundaries of the Enterprise Zone, please refer to the boundary map or address listing.

ELIGIBILITY
Businesses must be located within the boundaries of the Enterprise Zone. Find out if your business address qualifies for the state zone effective through May 27,2007 and/or new state zone EZ tax credits and incentives.

NEED ASSISTANCE?
Contact Natosha Safo at (415) 554-6130 or email: Enterprise.Zone@sfgov.org