| Although times are tough all around the country, | | | | Tax Credit. Generally speaking, the groups include |
| they are particularly stringent in a handful of | | | | those on public assistance, qualified youth and |
| states, one of which is California. If you own a | | | | veterans, although other employees may qualify |
| company in California, you will be pleased to learn | | | | as well. When you hire employees from any of |
| that there are California hiring tax credits available | | | | these groups, your company will then qualify to |
| that can lead to several thousands of dollars being | | | | receive Enterprise Zone credits and tax WOTC |
| eliminated from your annual tax bill. Although | | | | credit. |
| many companies do not take advantage of them, | | | | How much are these California tax incentives |
| the California hiring tax credits have the potential | | | | worth to my California-based company? |
| to save your company a significant amount of | | | | The amount of credit will depend on the specific |
| money. | | | | tax incentive and the number of qualified |
| Which companies qualify for California hiring tax | | | | employees that your corporation hires. However, |
| credits? | | | | the WOTC California credit can earn your |
| Depending on the specific California tax incentives | | | | company up to forty percent of your employee's |
| you might be looking at, there are some general | | | | first-year wages up to $6,000, with youth hires |
| qualifications that corporations must meet in order | | | | having a cap of $3,000, and both groups meeting |
| to earn these California tax incentives. If your | | | | minimum hours worked. Those employees who |
| company is located within one of the state's | | | | were on long-term family assistance and whom |
| forty-two Enterprise Zones and you hire | | | | you have given work for 180 days or 400 hours |
| employees who reside in the Zones and meet | | | | can allow you to deduct forty percent of the first |
| other criteria, then you qualify for California tax | | | | year's wages up to $10,000, and up to fifty |
| hiring credits. Enterprise Zones are located in areas | | | | percent of the next year's wages. Furthermore, |
| that the state has identified as economically | | | | the tax credits may be claimed for two years, |
| challenged, and thus to improve the local | | | | and can be carried forward for twenty years or |
| economies, the state provides these Enterprise | | | | backward for one year if needed. |
| Zone credits to qualifying companies. | | | | How can I learn more about these and other |
| Which employees would qualify my company for | | | | California business credits? |
| these California tax incentives? | | | | Your best source for tax credit information is to |
| There are several groups that have been | | | | contact a certified public accountant in California |
| targeted that would help your California company | | | | who routinely deals with hiring tax credits for |
| be able to claim Enterprise Zone credits, as well | | | | companies. |
| as the WOTC California, or the Work Opportunity | | | | |