News & Updates

Aug 15, 2013 — by: Kim Kessler

Kim-kesslerOn July 11, 2013, Gov. Jerry Brown signed Senate Bill 90 and Assembly Bill 93, which scales back the enterprise zone program of hiring tax credits that had provided employers in locally designated areas large tax breaks for years. Now, sales tax exemptions will be available for manufacturing and biotech research companies and other tax credits negotiated on a case-by-case basis with the administration.

Upon signing of these bills, the TEA (Targeted Employment Area) has been eliminated. What this means for Siskiyou County employers is that it will be much more difficult to get new hires vouchered for Enterprise Zone Tax credits. In addition, effective December 31, 2013, the program will effectively cease and be replaced by a much more defined program.

What this means for local businesses: all employees hired prior to July 9th need to be vouchered before December 31, 2013. For employees hired after July 8th you need to qualify new hires under the other Eligibility Categories BEFORE they are hired. Employees hired in 2013 will continue generating credit for their first 60 months of employment. Taxpayers will still be eligible for a 10-year carryover period to use these credits.

To discuss the other categories requirements please contact our office at (530) 926-3881 and we can assist you.

 

Kim Kessler, Business Manager

 Kim Kessler, Business Manager

 

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