What is an Enterprise Zone?
An Enterprise Zone is a geographic area that the State of California has designated to provide tax incentives to businesses. In 1984, the State of California established 42 Enterprise Zones to encourage and stimulate growth, development and investment in targeted areas. Taxpayers who invest, operate, or locate a trade or business within an Enterprise Zone may be eligible for special tax incentives.
What are the special tax incentives?
There are many different tax incentives provided to businesses in the Enterprise Zone. Primarily they fall into 1 of 2 categories, tax incentives for hiring qualified employees and tax incentives for equipment purchases. For more info click here.
Please Note: A business may or may not be able to make full use of a Hiring Credit of other benefits of the Anaheim Enterprise Zone program. We recommend that you contact your tax consultant for further information.
Where is the Anaheim Enterprise Zone?
For a boundaries map and list of street addresses located in the Anaheim Enterprise Zone, click here.
What is the "final" designation date for the Anaheim Enterprise Zone?
The City of Anaheim received its 15-year Enterprise Zone "final" designation from the State of California on February 1, 2012, and will be active through January 31, 2027.
Why is the "final" designation date important?
Enterprise Zone incentives and tax credits apply only to investments and business activities undertaken within the Enterprise Zone after the Zone received its final designation, or February 1, 2012 for Anaheim.
How do I know if my business is in the Anaheim Enterprise Zone?
The majority of commercially- and industrially-zoned land in Anaheim is located within the Enterprise Zone boundaries. Click here to view the boundaries.
What are Targeted Employment Areas (TEAs)?
TEAs are geographic areas composed solely of those census tracts designated by the U.S. Department of Housing and Urban Development as having at least 51 percent of its residents of low- or moderate-income levels. Living in a TEA is one method for employees to be qualified for the hiring credit.
Where are the TEAs in Anaheim?
For a list of Census Tracts and street addresses included in the Anaheim Enterprise Zone TEAs, click here.
I hired someone who says they live in a TEA outside of Anaheim. Can I apply for the Hiring Tax Credit? If yes, where can I find the list of TEAs in other areas?
Yes! You can apply for the Hiring Tax Credit for hiring someone who lives in any TEA throughout California. To see a complete list of maps and street ranges of other areas go to www.hcd.ca.gov/fa/cdbg/ez/.
What is the "Hiring Tax Credit"?
For employers engaged in a trade or business in an Enterprise Zone, the "Hiring Tax Credit" can be taken for qualified employees hired on or after the final designation date of the Enterprise Zone. For more information on the "Hiring Tax Credit," click here.
How do I know who is a "qualified" employee or job seeker in order for my company to apply for the Hiring Tax Credit?
Employees/job seekers must be pre-screened for eligibility by completing a questionnaire prepared by the State of California Department of Housing and Community Development. Applicants qualify by meeting one of thirteen criteria (categories) set by the State of California Department of Housing and Community Development. Categories include but are not limited to: Veteran; economically disadvantaged; ex-offender, or dislocated worker. To see the complete list of categories and acceptable documentation, click here.
What do I do next if the employee/job seeker "qualifies" my company to apply for the Hiring Tax Credit?
You will need to submit a State of California Enterprise Zone Hiring and Tax Credit Voucher request for approval to the Anaheim Chamber of Commerce. For complete instructions, click here.
Are there other benefits to being in an Enterprise Zone?
Yes! You may be eligible to earn one or more of the following state tax credits:
• Sales and Use Tax Credit
• Business Expense Deduction
• Net Operating Loss Carryover
• Net Interest Deduction for Lenders
For more details on the above benefits, click here.
Whom should I contact if I have more questions about the Anaheim Enterprise Zone?
Contact the Anaheim Chamber of Commerce office at (714) 758-0222.
I have more questions about Enterprise Zone tax credits. Who else can I call?
The Franchise Tax Board (FTB) has an Employer Business Booklet titled FTB 3805Z. You can download the booklet free by going to www.ftb.ca.gov, then typing ftb3805Z into the Search field. In addition, the FTB has a business hotline. They encourage you to use it. The number is (916) 845-3464.
What do I need to know when choosing a "tax consultant"?
With the final designation of the Anaheim Enterprise Zone program, you may be contacted, or need the services of a tax consultant or tax credit company. As with any business, these companies vary in how they charge, the services they provide, and their level of experience. Although the Anaheim Chamber of Commerce ("ACC") may be able to provide a list of available consultants, and makes every effort to screen companies on that list, the ACC always recommend that you research the firm you will use, and make sure you are informed.
Please note: All tax consultants & tax credit companies are fully independent of the ACC, and the ACC can make no guarantee upon the services provided by these companies.
