City Enterprise Zone Contact Rick Farley Enterprise Zone Manager Business Assistance Department City of Oroville 1735 Montgomery Street Oroville, Ca 95965 Phone: (530) 538-4307 Email: email@example.com CLICK HERE FOR Enterprise Zone Calculator
Vouchering AgencyRick FarleyEnterprise Zone ManagerBusiness Assistance DepartmentCity of Oroville1735 Montgomery Street, Oroville, Ca, 95965Phone: 530-538-4307Fax: 530-538-2539Email: firstname.lastname@example.org
Effective as of December 1, 2010, the Oroville EZ vouchering fee $50 per voucher application.
If you are using the Targeted Employment Area (TEA) eligibility, you need to prove that they reside in the TEA. The I-9, CA driver’s license, or W-4 can be used. A copy needs to go with the voucher application. They must reside in the TEA at the time of hire if you are using the TEA eligibility.
If you get audited by FTB or HCD you need to make sure that you have a good documentation file on each employee that you claimed an EZ tax credit for.
The Enterprise Zone Program targets economically distressed areas throughout California. Special state and local incentives encourage business investment and promote the creation of new jobs. The purpose of the program is to provide tax incentive to businesses and allow private sector market forces to revive the local economy.
Oroville is one of the few communities in the State that holds a designation for both a Recycling Zone and an Enterprise Zone.
Enterprise Zones are state-designated economic development areas created to stimulate growth and create jobs and stimulate investments in local communities. Through tax incentives, hiring incentives, financial incentives, etc.; the Enterprise Zone is designed to add to a business’s bottom line.
Bordered by the Sierra Nevada foothills and Lake Oroville, the Oroville Enterprise Zone is located, in the fast growing Sacramento Valley. Approximately 9,900 acres compromise the Enterprise Zone, including most of Oroville’s commercial and industrial areas. From Oroville, a business has easy access to San Francisco, Reno, Nevada, and Los Angeles; by road, air and rail.
Both large and small business can profit from the many opportunities available in the Enterprise Zone. The community’s pro-business attitude has resulted in attracting new businesses and retaining established business.
Oroville Enterprise Zone
The Oroville Enterprise Zone was established in 1991 and is 1 of 39 zones designated in California. (There are 44 zones currently). The Enterprise Zone boundaries encompass most of the city limits and portions of Butte County.
Enterprise Zone IncentivesThere are five (5) California State Tax related incentives the Enterprise Zone provides:
Oroville Enterprise Zone Hire Tax CreditA qualified business may reduce state income taxes by the amount of wages paid to one or more qualified employees.
During the first year of employment, up to 50% of a qualified employee’s wages may be claimed against your California income tax liability. The credit percentage decreases by 10% annually. The employer’s deduction for wages must be reduced by the amount of credit claimed.
The hiring tax credit calculation is based on the lesser of:
Employees must spend at least 90% of their work time on activities directly related to the conduct of business in the Enterprise Zone and perform at least 50% of the work within the zone boundaries.
Oroville Enterprise Zone Sales and Use Tax CreditBusinesses located in the Enterprise Zone may reduce state income taxes by the amount of sales or use tax paid on certain machinery purchased for exclusive use within the Enterprise Zone.
To qualify for the credit, the machinery must be used to manufacture, process, combine or otherwise fabricate a product; produce renewable energy resources; or control air or water pollution. Date processing and communication equipment are also qualified property.
Individual and Partnerships may claim a credit equal to the tax paid on the first $1 million of machinery costs.
Corporations may claim a credit equal to the tax paid on the first $20 million of machinery costs. Special rules apply for S-Corporation shareholders.
Oroville Enterprise Zone Business Expense DeductionBusinesses operating within the Enterprise Zone may elect to treat 40% of the cost of qualified property as a business expense. The maximum deduction in the Oroville Enterprise Zone is $20,000. Therefore, this particular provision is on a benefit to C-Corporations.
Oroville Enterprise Zone Net Operating Loss CarryoverIf net operating loss is generated by a business that operates within the Enterprise Zone, 100% of the loss may be carried forward for up to 15 years.
Oroville Enterprise Zone Net Interest Reduction for LendersLenders who loan money to an Enterprise Zone business can take a deduction from the net interest earned (interest earned less direct expenses) on the loan.
The types of loans that qualify for this deduction include: business loans, mortgages, and loans from non-commercial sources.
To qualify for the Loan Interest Earned Deduction:
Enterprise Zone Websites
Targeted Employment Area (TEA) Information
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