What makes a business taxpayer eligible (or “qualified”) to use zone tax incentives?
A business may qualify for special deductions and credits if it is located at a qualified address in a state designated economic development area or Enterprise Zone. The hiring credit is one of several tax incentives available to enterprise zone businesses. List of tax incentives on EZ website. What exactly is a hiring credit? The California Revenue & Taxation Code provides a state hiring tax credit for a “qualified taxpayer” who employs a “qualified employee” at a “qualified wage” within a designated Enterprise Zone. The taxpayer must apply to the local enterprise zone for a voucher certificate as evidence for utilization of the hiring credit on a state tax return. The hiring tax credit calculation is based on a formula provided by the Franchise Tax Board (FTB) to reduce the taxpayers state income tax. EZ Hiring Credit – Code Reference. Which employees qualify my business for the hiring credit voucher? A qualified employee is an individual whose circumstances fit any of several define
