Oakland Enterprise Zone Tax Credits
In 1984, the California Trade and Commerce Agency established Enterprise Zones (EZ) to foster economic development in depressed areas throughout California. Subsequently, the Oakland Enterprise Zone was designated. The Oakland Enterprise Zone’s purpose is to revitalize depressed areas by offering tax incentives and reduce barriers to employment. Employers operating in the Enterprise Zone Oakland can apply for Enterprise Zone credits to receive tax savings.
The City of Oakland received an initial 15-year Enterprise Zone designation in 1993 and the Oakland enterprise zone was renewed in 2008. Oakland businesses located in the zone can reduce their state taxes by taking advantage of Enterprise Zone benefits.
The Oakland Enterprise Zone is one of the largest urban Zones in California, encompassing more than 27 square miles and more than 10,000 businesses in Downtown, Airport, Port, and several industrial and manufacturing areas. The Oakland Enterprise Zone is within immediate access of five major freeways; the Port of Oakland; the Oakland International Airport; and a wide range of educational facilities, housing and other amenities.
A Tax credit of up to $37,440 over a 5-year period per each qualified employee can be claimed by an business located in the Oakland Enterprise Zone. An employee can qualify under any one of 13 different categories.
How do I know if my business qualifies?
» To see if your business qualifies, fill out the Enterprise Zone eligibility form
Who can benefit?
Any business can benefit from these programs at the federal, state and local level. Depending on the locations and activities of a business it may be entitled to pre-existing incentives that only need to be appropriately documented in order to be claimed. Many businesses and their owners may file for refunds of prior taxes paid as well as offset future tax liabilities. While this process generally involves tax return preparation, it is unreasonable to expect tax preparers to identify each and every niche program available. KBKG’s goal is to augment tax preparers’ services to utilize these programs where beneficial.
Who can qualify?
A common misconception regarding employment-related credits is that the legislation surrounding them is so detailed that no business would qualify. In fact, only 10% of the benefits available to businesses are actually realized. KBKG has eliminated the guesswork by investing significant research into each program and the ever-changing legislation surrounding it. We analyze the key issues with respect to qualification, allowing tax preparers to focus on “big picture” tax planning while we handle the details. KBKG also works to promote awareness and educate the business community regarding these incentives so that program participation may grow.