On September 30, 2009 the City of Pittsburg and the unincorporated area of Bay Point were awarded a conditional Enterprise Zone Designation from the Department of Housing and Community Development (HCD). It is anticipated that the Zone will receive formal designation by HCD in January 2010. The HCD website is the primary resource to obtain valuable information on Enterprise Zone regulations. The HCD website address is http://www.hcd.ca.gov/fa/cdbg/ez/.
Enterprise Zone - Map [PDF]
WHAT IS AN ENTERPRISE ZONE?
- Areas within California, designated by the Department of Housing and Community Development.
- Used to encourage growth, development, and investment in these areas
- Businesses with locations within these Enterprise Zones may qualify for special tax incentives and credits.
AVAILABLE ENTERPRISE ZONE CREDITS
- Hiring Credit
- Sales and Use Tax Credit
- Business Expense Deductions
- Net Interest Deduction
WHAT IS THE HIRING CREDIT?
Businesses within the Enterprise Zone can claim the hiring credit for an employee who:
- Was hired after the Enterprise Zone received its designation.
- Spends at least 90% of work time on activities related to business within the Enterprise Zone.
- Performs at least 50% of their work within the Enterprise Zone, and
- Is determined a “Qualified Employee”.
WHO ARE QUALIFIED EMPLOYEES?
Qualified employees are those who are:
- A resident of a targeted employment area within an Enterprise Zone
- Recently discharged from the military (last 4 years), or Vietnam-era veteran.
- Displaced Workers (laid off from previous employer).
- Economically disadvantaged (minimal or no earnings in the 90 days prior to date of hire).
- Receiving SSI, AFDC, food stamps, or general assistance.
- Work Opportunity Tax Credit or Welfare To Work (W2W).
- Eligible for services under the Workforce Investment Act-intensive services (WIA).
- Participant in Welfare To Work activities under CalWORKS.
- Ex-offenders (no limitation on how far back).
- Native Americans (Enrolled with tribe, has tribal card).
- Native Samoan, Native Hawaiian
- A disabled individual eligible (including disabled veterans) and / or enrolled in or completer a state rehabilitation plan.
HIRING CREDIT EXAMPLE
Assume company A has 10 employees working within the Enterprise Zone, and 5 of these employees qualify. Each employee makes $10/per hour and works 2,080 hours per year = $20,800 in wages.
The following credits would be available (estimated):
| Year 1 |
$52,000 |
| Year 2 |
$20,800 |
| Year 3 |
$15,600 |
| Year 4 |
$10,400 |
| Year 5 |
$ 5,200 |
| TOTAL CREDIT $104,000 |
WHAT IS THE SALES & USE TAX CREDIT?
- An Enterprise Zone business may claim a credit equal to the state sales or use tax paid/incurred for the purchase of "qualified" property
- Qualified property includes the purchase of machinery or machinery parts used in the following:
1. Fabricating, processing, assembling, and manufacturing;
2. Data processing and communications equipment
Information provided by Brown, Fink, Boyce & Astle, LLP
The Pittsburg/Bay Point Enterprise Zone is administered by the City of Pittsburg.
Contact information for the Enterprise Zone is as follows:
Sherry Hoyt
Senior Analyst / Enterprise Zone Manager
City of Pittsburg
65 Civic Avenue
Pittsburg, CA 94565
(925) 252-4145 or (925) 252-4049