California Tax Incentives to Help Corporations

With a sagging economy, businesses located inare unaware of is that these corporate tax
the United States are utilizing every meanscredits can go back for up to four years prior if
possible to improve their bottom lines. Oneamended returns are submitted, giving small and
under-used resource available to California-basedmid-sized business a much-needed financial gain of
corporations are California tax incentives. Youup to $200,000.
may be able to take advantage of a California taxThere are other California tax incentives available
credit, other tax incentives and even personal taxin the area of sales tax credit offered to
credits if your business operates in one ofbusinesses in the Enterprise Zones. Partnerships,
California's Enterprise Zones.LLCs and S Corps can earn corporate tax credits
The good news is that Enterprise Zones areof up to $100,000 annually, and C Corps over
located throughout the state of California. These$200,000 annually for those businesses that add
forty-two zones are in economicallyenergy saving equipment, air and water pollution
disadvantaged areas of the state, and by beingcontrol equipment, equipment for processing and
classified as an Enterprise Zone, they qualify for amanufacturing as well as research and
number of different corporate tax incentives.development. This welcome California tax credit
One of these corporate tax credits can come inalone can save your business up to ten percent
the form of hiring credits. If you have what theof the after-tax cost of capital expenditures.
state calls a "qualified" employee, your company inThere are other California tax incentives that may
the Enterprise Zone may be eligible for up tobe helpful to your employees. Both employees
$12,500 in California tax credit. Anywhere fromand lenders may qualify for additional corporate
fifteen percent to fifty percent of your workertax incentives that lend another boost to the local
base may make your business eligible for thiseconomy. Because of these generous tax
California tax credit. Employees that qualify includeincentives, businesses are encouraged to hire
those who are veterans, physically orthose who have been unemployed or are
economically challenged, American Samoans,veterans, which helps individual employees
Pacific Islanders, Native Americans and those whotremendously and helps to reduce unemployment
have been recently laid off. Another part of thisthroughout the state while at the same time
California tax credit that many business ownershelping the company as well.