Carrazco & Associates, An Accountancy Corporation -- Innovative Tax Solutions

The following sections describe the most important California tax incentive programs. Your company may be eligible to benefit from one or more of these. Carrazco & Associates will help you obtain REFUNDS of unclaimed credits from prior years while reducing your current and future taxes.

Enterprise Zone Hiring Credit
If your business hires qualifying employees to work in an Enterprise Zone, you can earn significant tax savings-potentially more than $31,000 per qualifying employee. The Enterprise Zone Hiring Credit is designed to help your business hire and maintain workers from groups that have high unemployment rates or other special employment needs. If your business is located in an Enterprise Zone, experience shows that as many as 20 to 30 percent of your current employees probably qualify for the credit. Frequently, many more will qualify.

To earn this credit, your business must obtain certificates of eligibility from the state's Enterprise Zone program for each qualified employee. Carrazco & Associates will help you by determining eligibility and by coordinating, collecting and documenting the required information and certifications from various state and federal agencies. We will also process the required payroll and tax data to determine how much Hiring Credit you can claim against your California state income tax.

Enterprise Zone Sales and Use Tax Credit
When a business purchases qualified property for use in an Enterprise Zone, the business can claim a state income tax credit equal to the amount of sales or use tax incurred on the purchase of that property. The maximum credit a company can earn is in excess of $1 million annually, based on the purchase of up to $20 million in qualified property. Property that qualifies for the Sales and Use Tax Credit may also qualify for the California Manufacturers' Investment Credit (discussed below), significantly increasing in the amount of credit available.

Carrazco & Associates will assess your capital asset purchases to determine which assets qualify and how much credit you can claim. We will perform the detailed analysis needed to qualify, thoroughly document and calculate your California Sales and Use Tax Credit.

Enterprise Zone Net Interest Deduction
Financial institutions that invest in Enterprise Zones may claim a tax deduction against their California income tax based on the amount of interest they earn from Enterprise Zone businesses. Many financial institutions have extended credit to Enterprise Zone businesses without knowing that their clients have qualified them for tax breaks. In fact, most Enterprise Zone business owners are not aware themselves that they are located in such zones. If your business lends money, Carrazco & Associates will perform a technical review of your loan accounts to determine which ones are currently qualifying you for significant tax savings.

Enterprise Zone Employee Wage Credit
If your business is located in an Enterprise Zone, its employees may themselves be eligible for significant savings on their personal state income tax. As Carrazco & Associates helps you to claim the tax benefits that your business has earned, we will also assist your employees to potentially claim hundreds of dollars in personal state income tax savings. This service is free of charge.

California Manufacturers' Investment Credit
The California Manufacturers' Investment Credit (or MIC) is available to businesses that incur qualified costs for acquiring, constructing, or reconstructing qualified property. The requirements for the MIC are highly technical while the financial benefits are substantial. Many businesses that are not typically thought of as manufacturers may be eligible such as bread bakers, meat packers, and book printers and publishers. If your business is located in a California Enterprise Zone, property that qualifies for the MIC may also qualify for the Enterprise Zone Sales and Use Tax Credit (discussed above), significantly increasing in the amount of credit available.

Let us evaluate your operations. If your business is eligible, Carrazco & Associates can help you to claim 6% of the tax year's total qualified costs as a direct credit against your California state income tax. And like other California tax incentives, your business can recoup the credits you may have missed during prior tax years still amendable.

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