sales or use tax paid thanks to a sales tax credit available to Zone
businesses. In any year individuals can claim a credit on the first $1
million of qualifying purchases. Corporations can claim it
on the first $20 million.
State Hiring Tax Credit
As was mentioned, the most unique benefit of the Business
Incentive Zone is that any resident of the Zone boundary qualifies
for the hiring credit. Over $37,000 in State Tax Credits is available
over five years for each eligible employee. The maximum hiring credit available is based on an hourly wage of $12. Full time, part-time,
temporary, or seasonal employees qualify if they meet just one of
the following criteria:
• A resident of the Zone boundaries
• A person eligible for the Jobs Training Partnership Act or the Greater
Avenues for Independence Program (GAIN)
• An economically disadvantaged person 14 years old or older
• A disabled individual
• An ex-offender
• A Native American
• A displaced worker
• A Vietnam Veteran
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 placed into service.
The maximum deduction allowed is $20,000.
Does Your Business Qualify?
Incentives are available to businesses located in the Zone in
these Standard Industrial Classification Codes (SIC):
2000-2099 Food Processing
2200-3999 Manufacturing
4200-4299 Motor Freight Transportation and Warehousing
4500-4599 Transportation by Air
4700-5199 Transportation Service and Wholesale Trade
For more information on California’s only Business Incentive
Zone, please call the Economic Development Corporation serving
Tulare County/Sequoia Valley at (800) 718-2332.
