The California Department of Housing and Community Development (HCD) announced Tuesday the final designation of the Sequoia Valley Enterprise Zone (EZ). This designation is effective retroactively to October 6, 2010 and will expire in 15 years. Read about it at The Recorder Online.
In September of last year, I reported on some controversy affecting this and eight other “conditionally” designated zones. California Governor Jerry Brown’s office had instructed HCD to delay the final designation of these zones. That order has since been retracted and the remaining designations are being processed.
According to the zone’s website, the Sequoia Valley EZ affects the California communities of Cutler/Orosi Dinuba, Ducor, Earlimart, Exeter, Farmersville, Goshen, Ivanhoe, Lindsay, North Delano, Pixley, Poplar, Porterville, Richgrove, Strathmore, Terra Bella, Tipton, Traver, Tulare, Visalia, Woodlake. However, if your business is located within any other part of Tulare County, don’t rule out eligibility until you have confirmed it with a phone call.
Businesses located within the EZ are eligible for a number of valuable tax incentives including:
EZ Hiring Credit
Firms can earn $37,440 or more in state tax credits for each qualified employee hired
EZ Sales & Use Tax Credit
Sales tax credits on purchases of qualified machinery and parts
Net Operating Loss Carry-forward
Up to 100% Net Operating Loss (NOL) carry-forward (which can be carried forward for 15 years)
EZ Business Expense Deduction
Up-front expensing of certain depreciable property
Net Interest Deduction
Lenders earn tax-free interest on qualifying loans to EZ businesses.
EZ vendors can earn preference points on state contracts.
Please feel welcome to contact me with your questions about the State of California’s EZ program, or about this or any other particular CA zone. I am Vaughn Hromiko, vah@WOTCPlanet.com