Enterprise Zone Gives Eureka Businesses an Advantage

My company was selected for a major rebranding project of the Eureka Redevelopment Agency in Eureka, CA. The scope of the project included designing a new logo and writing and designing new marketing/program materials and their website.

In this project, my copywriting skills were utilized to create an informational brochure to promote the Agency’s Enterprise Zone to help small businesses in this historically economically challenged area.

Website Copy for
Eureka Redevelopment Agency

Enterprise Zone

Creating and sustaining a robust economic climate requires supportive, favorable conditions for growing businesses. To assist in this effort, the Eureka Redevelopment Agency helps businesses take advantage of California Enterprise Zone cost savings and benefits.

Get into the zone

An Enterprise Zone is an economically depressed area in California that is designated by the Trade and Commerce Agency to encourage and stimulate growth, development, and investment in the area. Taxpayers that conduct business activities within the boundaries of an enterprise zone may quality for special tax incentives.

Participating in Enterprise Zone benefits is absolutely free! Whether a business is a sole proprietorship, partnership or corporation, as long as it is located in Eureka’s Enterprise Zone, it can qualify for significant tax savings.

State tax credit incentives*

Reduce your state income or franchise tax liability when you purchase certain types of machinery or equipment for use at your location. Qualified property consists of machinery or machinery parts used to: manufacture, process, assemble or fabricate a product; produce renewable energy resources; or control air or water pollution. Data processing and communications equipment, and motion picture manufacturing equipment also qualify.

Individuals, estates, trusts, partnerships and LLCs taxed as partnerships can claim a credit on the first $1,000,000 of qualified purchases. Corporations can claim credit on the first $20,000,000.

Business expense deductions

Your business can save between one and twenty million dollars when purchasing large machinery and other types of manufacturing equipment. Tax savings up to $20,000 are also available on qualifying business equipment, furniture, fixtures and other depreciable personal property.

Hiring credit

Hire an individual from an economically disadvantaged “targeted group” as defined in IRC Section 51(d) of the Internal Revenue Code and save more than $31,000 over five years for each qualified employee.

You can also enjoy a state tax credit up to 150% of the current minimum wage over a five year period. Contact the Redevelopment Agency for more information about specific hiring credit incentives within the Enterprise Zone.

Net interest deductions for lenders

Banks or individuals lending to Enterprise Zone businesses can deduct additional related lending expenses. Deductions vary, from expenses incurred in making the loan, to a deduction equivalent to the net interest produced by the loan. In turn, zone businesses often receive more favorable rates or terms from participating lenders. Contact your preferred lending institution for further information.

* Contact the Franchise Tax Board or your tax accountant for further information.

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