California EZ Hiring Tax Credit:
If you hire an eligible employee to work in the Zone, you may qualify for a state hiring tax credit. Each employee your business retains for five years could save you up to $31,606. 

California EZ Sales and Use Tax Credit:
If you buy manufacturing, data processing, or communications equipment such as computers, copy machines, telephone systems, and fax machines for use in a business inside the Zone, your company may be eligible for the sales and use tax credit. In any year, individuals can claim a credit on the first $1,000,000 of qualifying purchases, while corporations can claim the credit on the first $20,000,000. This credit can be claimed in addition to the Manufacturer's Investment Credit (MIC) you may also qualify to receive.

California EZ Business Expense Deduction:
You can deduct the cost of each qualifying item of business equipment, furniture and fixtures (or other depreciable personal property) as a business expense in the year you place it into service maximum deduction of $20,000). You can also depreciate this property as you would normally, giving you additional benefits over the life of the property.

California EZ Net Operating Loss Carryover:
Individuals or corporations in the Zone who show a net operating loss may be able to carry that loss over to future years to reduce future tax liability. Minimum taxes may still apply.

California EZ Interest Deductions for Lenders:
A bank or individual making a loan to a business whose sole activity takes place in the Zone may deduct direct expenses incurred in making the loan from the interest income. The lender may also take a deduction equivalent to the net interest produced by the loan. As a borrower, this could mean more favorable rates or terms on a business loan

Federal Hiring Credits
The Work Opportunity Tax and Welfare to Work Credits provide businesses with an incentive to hire individuals from groups that have a particular high unemployment rate or other special employment needs.  Your business does not have to be in an empowerment zone, enterprise community, or renewal community to qualify for this credit.  The maximum credit amount ranges from $1,500 to $8,500. 

For detailed information concerning the federal credits, please click here. 

Manufacturers' Investment Credit:
A 6% tax credit is available to qualifying manufacturers (SIC 2000-3999: beginning on or after January 1, 1994). It can be given on qualified property as defined in IRS Code 1245, and can be combined with the Enterprise Zone Sales and Use Tax Credit, netting businesses 13.25% or more in state income tax credits for the same property.  (Expired - only applicable for qualified purchases made on or before 12/31/03)