Pasadena Enterprise Zone Tax Credits

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Pasadena Enterprise Zone Tax Credits

The Pasadena Enterprise Zone is a State of California tax incentive program. The City of Pasadena received its first 15-year designation on April 10, 1992 that expired on April 9, 2007. The new Pasadena Enterprise Zone is significantly larger and covers both commercial and industrial 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 Credits

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 Hollywood 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

FAQ

Can my tax preparer do this?
Your tax preparer is by far the best resource for any tax-related inquiries. KBKG’s role is to augment your tax preparer’s expertise and capabilities by providing staff exclusively dedicated and trained to manage the volume of paperwork associated with tax incentive programs. Much of the information surrounding these programs is outside the realm of traditional accounting and encompasses HR, payroll, operations and tax. It would be unreasonable to expect a tax preparer to maintain all of these functions and monitor all related legislative changes. KBKG provides these services to you for your tax preparer.

How much does it cost?
The cost is usually a percentage of the tax savings a business receives and is usually not due until a refund has been received or savings are realized.

How long does the process take?
Depending on how quickly a client provides the necessary paperwork, the process can take up to 2 months.

What if I am already claiming credits?
Much of the legislation surrounding these programs changes regularly. These changes are often retroactive and may entitle your business to receive refunds not previously realized. Additionally, our in-depth knowledge of these programs and their complexities allows us to identify areas of the tax return where current tax software and forms do not adhere to the latest rulings and legislative changes. Nonconformity can unintentionally limit the amount of benefit a business or its owner may realize. KBKG specialists are trained to identify these issues. A consultation with our professionals can help determine whether you may be at risk of missing additional opportunities.

Will claiming these credits increase my chances of being audited?
No. The reason companies get audited is because they have either been randomly selected for an audit, or because of abnormal figures on their tax returns. If the credits you claim are accurate and properly documented in the tax return according to government and industry standards, there is no increased likelihood of an audit. However, at KBKG we not only stand behind our work, we also provide audit support and representation to back up our findings free of any additional costs.