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CALIFORNIA ENTERPRISE ZONE HIRING TAX CREDITS

MARSHALL S TEVENS

LIMITING TAX LIABILITIES FOR CALIFORNIA BUSINESSES: Since 1984, the California Enterprise Zone (EZ) program has provided millions of dollars of tax credits and incentives to businesses throughout California. Businesses located at qualified addresses within an Enterprise Zone qualify for various incentives including the Enterprise Zone Hiring Credit. Each qualified employee can result in a reduction of California income tax of up to $37,440 over a five year period. However, it is estimated that less than 20 percent of businesses located in a California Enterprise Zones actually take advantage of the program. The Marshall & Stevens Business Incentives Group uses advanced software and web-based technology to streamline information gathering and secure all benefits that are available to your business. Our purpose is to assist businesses located in California Enterprise Zones maximize your California Enterprise Zone tax credits.

QUALIFIED EMPLOYEES An employee can qualify the business for the hiring credit if the employee meets certain criteria at the commencement of his or her employment. Under the statute, an employee is a qualified employee if he or she satisfies three requisite conditions and falls into one of numerous classifications. The three requisite conditions relate to the employee's date of hire and services performed. In contrast, the classifications concern the status of an individual in a certain targeted group immediately preceding his or her employment. For example, an economically disadvantaged individual 14 years of age or older would fall within one of the classifications.

PROCESS We use advanced software and web-based technology to collect this data for each employee. Once the data is collected, we will meet with the appropriate government representatives to obtain a certification voucher for each employee. The hiring credit statute does not preclude a taxpayer from retroactively vouchering qualified employees. Thus, we are able to file for refund claims for up to four years. In some cases, we have obtained refunds of millions of dollars in prior taxes. Unused tax credits can be carried forward indefinitely.

OTHER BUSINESS INCENTIVES SERVICES INCLUDE: • Federal Work Opportunity Tax Credit (”WOTC”) • New Markets Tax Credits • State and Federal Loans and Grants • Employment Training Program (”ETP”) • Research & Development Tax Credits • Historic Tax Credit Program

LOS ANGELES

NEW YORK

PHILADELPHIA

CHICAGO

www.marshall-stevens.com

ST. LOUIS

TAMPA


FEDERAL WORK OPPORTUNITY TAX CREDIT (WOTC) OVERVIEW: Marshall & Stevens also provides full services related to the Federal Work Opportunity Tax Credit, which is a federal program provided to employers to promote the hiring of individuals who qualify as a member of a targeted group. WOTC can provide as much as: • $2,400 for each new adult hire • $1,200 for each new summer youth hire, • $4,800 for each new disabled veteran hire, and • $9,000 for each new long-term family assistance recipient hired over a two-year period

MARSHALL & STEVENS BUSINESS INCENTIVES GROUP ..........................................................................................

CONTACTS: Barry Hacker Senior Managing Director Cell: 310.499.3910 Tel: 213.233.1503 bhacker@marshall-stevens.com Matthew J. Trumbo Associate Cell: 818.370.5614 Tel: 213.233.1513 mtrumbo@marshall-stevens.com For more information about our team, please visit www.marshall-stevens.com

Quality Valuation Quality Decision Making Independence & Integrity


Enterprise Zone Hiring Tax Credits & FWOTC