Tax Credits and Benefits

Who Can Claim the EZ Tax Incentives?
The EZ credit and deduction are available to individuals, sole proprietors, corporations, estates, trusts, and partnerships operating or investing within the designated Enterprise Zones.

Summary of Enterprise Zone Incentives

Hiring Credit
Employers conducting a trade or business inside an Enterprise Zone may claim a hiring credit for wages paid to a qualified employee, up to $31,544 over a five-year period.

Sales and Use Tax Credit
Businesses conducting a trade or business in an Enterprise Zone may claim a credit for the sales or use tax paid or incurred on the purchase of certain qualified machinery or equipment.

Business Expense Deduction
The cost of qualified property (up to $20,000) purchased for exclusive use in an Enterprise Zone may be deducted as a business expense in the first year it is placed in service.

Net Interest Deduction for Lenders
A deduction from income is allowed on the amount of "net interest" earned on loans made to a trade or business located exclusively in an Enterprise Zone.

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Summary of Federal Incentives

Federal Work Opportunity Tax Credit (WOTC)
Qualification Criteria: Employee Characteristics

This tax credit program rewards employers who hire qualified disadvantaged workers with federal tax credits. Any company doing business in the United States is eligible. We assist in qualification of employees through a certification process that includes a pre-screening application, short phone interview by one of our staff, and communication with appropriate government agencies. Of course, we also prepare supporting documentation and necessary calculations at the end of the client's fiscal year.

Federal Welfare-to-Work Tax Credit
Qualification Criteria: Employee Characteristics

The Welfare-to-Work Tax Credit is similar to the Work Opportunity Tax Credit, but with much stricter certification requirements for prospective employees. It offers a substantially greater amount of tax credits for each certified employee.