The new Pasadena Enterprise Zone is significantly larger and covers both commercial and industrial zoned land within the City of Pasadena. In addition, the City of Pasadena offers local benefits to businesses located within the Enterprise Zone boundaries. Both the state and local benefits apply during the life of the Pasadena Enterprise Zone from April 10, 2007 until April 10, 2022.
Hiring Credit Program
This five year state tax credit, potentially up to $37,000 per qualified employee, for full-time or part-time employees that meet one of twelve qualifying criteria under the Hiring Credit Program. Potential criteria includes but not limited to: previously laid off due to plant closure or downsizing, military veteran, public assistance recipient, and resident of a targeted employment area. Enterprise Zone business must obtain a Hiring Credit Voucher from the Pasadena Enterprise Zone Office.
Sales and Use Tax Credit
Allows Enterprise Zone businesses to claim a state tax credit equal to the sales and use tax paid on the purchase of qualified equipment. Qualified equipment includes assets such as manufacturing, data processing, office, audio/video, and computer equipment.
Business Expense Deduction
Enterprise Zone businesses may deduct up to 40% of the cost of qualified property purchased for exclusive use in an Enterprise Zone during the first year it’s placed in service.
Net Operating Loss
Enterprise Zone businesses may elect to carry forward 100% of their net operating loss for 15 years.
Net Interest Deduction for Lenders
Lenders can earn a deduction from income on the amount of net interest earned on loans made to Enterprise Zone businesses. Businesses looking for an edge in applying for a loan should bring this credit up with your lender.
Apodaca CPA is an accounting firm based in Monrovia, Los Angeles County, California. We offer tax services, tax consulting and tax preparation services, bookkeeping services, business auditing, business financial services, corporate tax return services, Income tax services, inventory analysis services, non-profit accounting services, payroll processing services, financial services including pension plan management services, projection and forecasts services, cash budgeting and cash management services, education credits, energy credits and vehicle tax credits information and management.
Apodaca CPA provides accounting services, payroll services, personal and business consulting, tax solutions to individual entrepreneurs and small to medium size businesses in the cities of Monrovia, Arcadia, Pasadena, Altadena, Sierra Madre, San Gabriel, Duarte, Industry, South Pasadena, San Marino, Azusa, Covina, West Covina, Irwindale, Glendora, San Dimas, La Verne, Claremont, Burbank, Glendale and Los Angeles.