Eligibility Requirements

How can I verify that my business is located within the Enterprise Zone?

If your business is located within the San Bernardino Valley, verify eligibility by visiting the following EZ web portal search engine in the lower left.

For any areas outside of San Bernardino Valley, please contact the Department of Housing and Community Development at (916) 322-1550 or visit their website here.

The resources listed above can be used to verify whether your business is located within an Enterprise Zone.

What are the available tax incentives for businesses located within the Enterprise Zone?

There are five tax incentives available to taxpayers that invest in or operate a trade or business located within an Enterprise Zone. The tax incentives include the following:

  • Hiring Credit
  • Sales and Use
  • Business Expense Deduction
  • Net Interest Deduction
  • Net operating loss (NOL) carryover

For information about each tax incentive, refer to the Enterprise Zone Business Booklet - FTB 3805Z Booklet which can be found by clicking here: California Forms and Instructions Booklet 3805Z 2011.

Which employees qualify my business for the hiring credit?

Employers engaged in a trade or business within an Enterprise Zone may claim the hiring credit for qualified employees. A qualified employee is an individual who falls under one of following eligibility categories:

    A person enrolled/eligible to receive subsidized employment, training, or services funded by the federal Workforce Investment Act (WIA) - Intensive Services or Core B Public assistance (AFDC, SSI, Food Stamps) recipient/eligible CalWorks WOTC eligible or successor program TEA resident Vietnam veteran or veteran recently separated Native American, Native Samoan, Native Hawaiian, or member of another group of Native American descent Ex-offender Economically disadvantaged individual Disabled individual or service-connected disabled veteran Dislocated worker

The hiring credit can be captured only for those employees hired after an area is officially designated as an Enterprise Zone and before the designation expires. In addition, at least 90% of the employee's work must be directly related to a trade or business activity located in the Enterprise Zone and at least 50% of the employee's work must performed inside the boundaries of the Enterprise Zone. To see the complete list of categories and acceptable documentation click: Here