Enterprise Zone Business Incentive
The State of California has designated all of West Berkeley from San Pablo Avenue to the I80 Freeway as part of the State Enterprise Zone Program. Inclusion in the Enterprise Zone means that over 1,100 West Berkeley businesses, from large manufacturing companies to small neighborhood restaurants, will be eligible to claim State tax credits that can greatly reduce their state tax obligation. Businesses located in the Enterprise Zone are automatically eligible: no certification is necessary. The two main benefits are:
- A hiring credit of up to $37,440 per eligible employee hired after the area is designated an Enterprise Zone. Eligible persons include the unemployed, disabled, veterans and individuals receiving public assistance.
- State sales tax credits on purchases of $20 million per year of qualified equipment and machinery parts.
Other tax incentives include a net operating loss deduction, a business expense deduction and a net interest deduction for lenders (to encourage loan to Enterprise Zone businesses). Enterprise Zone businesses also earn preference points on state contracts.
Review training materials (PDF) of Enterprise Zone benefits.
For additional information on Enterprise Zone benefits and business incentives, please see the website www.EZOakland.com or call Susana Villarreal, Oakland – Berkeley EZ Coordinator (510) 238-7794 or email: firstname.lastname@example.org.