Enterprise Zone Tax Credits

An Enterprise Zone is a geographic area designated by state and local agencies that has experienced a weakening in overall economic stability. Enterprise Zones may demonstrate higher poverty rates, unemployment rates or lower per capita incomes that surrounding municipalities. For that reason, the governing authorities introduce tax benefits to businesses who are either currently in the area or interested in locating there.

Enterprise Zone benefits may vary from state to state in the assistance they offer. Programs are tailored to benefit the individual state economies so oversight of the program is most often at the state level. Examples of Enterprise Zone incentives include:

  • Job Tax Credits
  • Sales Tax Deferrals
  • State Withholding Tax Benefits
  • Sales Tax Refunds on Business Equipment and Materials
  • Property Tax Credits
  • Sales Tax Exemptions
  • Utility Tax Abatements and Exemptions
  • Community Contribution Credits

There may be more than one Enterprise Zone located in one state or there may be one Zone with multiple regions. The state of California offers the most complex and financially rewarding Enterprise Zone program, with over 42 zones throughout the state. To see a list of California Enterprise Zones, click here.

To see if your business is located in an Enterprise Zone and which benefits are available, call us today.