Hollywood Enterprise Zone Tax Credits
The Hollywood Enterprise Zone is an expansion of the Los Angeles Enterprise Zone and was approved on May 10, 2010. It includes the Warner Center portion of Woodland Hills; the Canoga Park, Chatsworth and Northridge industrial areas; the area surrounding Van Nuys Airport; and Van Nuys Boulevard from Saticoy Street to Oxnard Street in Van Nuys. The State of California approved additional expansion on May 18, 2010 to include the areas surrounding LAX; portions of San Fernando Road and Foothill Boulevard in Sylmar; and Washington Boulevard and Glendale Boulevard in Echo Park. Click to see a selection of SEZ expansion area maps.
A Tax credit of up to $37,440 over a 5-year period per each qualified employee can be claimed by a business located in the Hollywood Enterprise Zone. An employee can qualify under any one of 13 different categories.
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC). Any business anywhere can qualify for the credits as long as they hire persons between the ages of 18-39 who reside in either the Federal Empowerment Zone (EZ) or the Federal Renewal Community (RC) area. Los Angeles contains both an EZ and an RC. There are eight (8) additional eligibility categories, some of which are not dependent on the employee’s address. The WOTC hiring credit is worth up to $2,400 per year for each eligible hire.
See if you qualify for the Enterprise Zone Tax Credit
Other benefits of the Hollywood Enterprise Zone includes:
Sales and Use Tax Credits
An Enterprise Zone business can receive a tax credit of 100% of the sales/use tax paid for equipment purchases for use in the zone. Machinery, machinery parts, telecommunications equipment and office equipment such as copiers, printers, fax machines and telephone systems also qualify.
Business Expense Deduction
An accelerated depreciation is available for tangible personal property the first year it is placed in service in an Enterprise Zone. Office supplies and inventory do not qualify. Limits: $20,000.
Net Interest Deduction
Lenders can earn tax-free interest on loans made to Enterprise Zone businesses.
Net Operating Loss Carryover
100% of Net Operating Losses may be carried forward for 15 years to reduce the amount of taxable income for those years.