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The Merced Regional Enterprise Zone has stopped accepting any Enterprise Zone Applications. Thank you for your applications to date. Because of the backlog of applications to be processed, we ask that you be patient with the turnaround time. We are working diligently to have all the vouchers processed by December 31, 2014.

Dear California Enterprise Zone Administrators and Interested Parties:

The Department of Housing and Community Development Enterprise Zone Program has been notified by the Los Angeles Community Development Department that it intends to discontinue accepting applications for hiring tax credit vouchers at its three enterprise zones on August 31, 2014. Management and staff estimate that it will require the remainder of the year to process and issue vouchers for the applications they will have on hand as of that date.

Due to the volume of applications from the three zones, it will be necessary to assign several Third-Party Agents to ensure that applications can continue to be accepted and vouchers issued until the end of the year. Maps and street ranges will be published on the HCD website which will enable applicants to determine which Agent is accepting applications for taxpayers located in the various areas of the zone. For applications from September 1st through the end of the year, Third-Party Agents have been assigned various areas of the three zones, as follows:

1. For the Los Angeles East and Harbor Gateway Communities Zones in their entirety, the Merced County Department of Workforce Development has been designated as Third-Party Agent assigned to accept applications, process and issue Hiring Tax Credit voucher certificates. Their contact information is:

Merced Co. Dept. of Workforce Investment
1880 Wardrobe Avenue
Merced, CA 95341
Contact: David Heyer
(209) 761-3827
F (209) 725-3592
dheyer@co.merced.ca.us
http://www.co.merced.ca.us/ez

2. For the Hollywood area of the LA Hollywood Zone, the Department has designated The San Joaquin County Economic Development Association as Third-Party Agent who will accept applications and issue Hiring Tax Credit voucher certificates. Their vouchering contact information is:

San Joaquin County Economic Development Association
56 S. Lincoln
Stockton, CA 95203
Contact: Ed Wanket
(209) 468-3613
F (209) 468-3666
ewanket@sjcworknet.org
http://www.sjcez.org/index.aspx

3. For the San Fernando Valley area of the LA Hollywood Zone, the Tulare County Economic Development Corporation has been designated as Third-Party Agent. Their vouchering contact information is:

Tulare County EDC
506 N. Kaweah, Suite A
Exeter, CA 93321
Contact: Lori Dunagan
(559) 697-3820
lori@sequoiavalley.com

4. For the Central area of the LA Hollywood Zone, RICHMONDWORKS has been designated as Third-Party Agent. Their vouchering contact information is:

RICHMONDWORKS
330 25th Street Richmond, CA 94801
Contact: Jacqulyn Holley, M.A.
(510) 307-8024 jholley@richmondworks.org

All assignments were made based upon the resources available as described by each of the designated Third-Party Agents to address the anticipated volumes along with an assessment of their readiness to begin operations.

For further information on the Enterprise Zone Program, please contact:
John Nunn, Jr.
Department of Housing and Community Development
Program Manager
State Enterprise Zone Program
2020 W. El Camino Avenue
Sacramento, CA 95833
916-274-0575
916-263-2765 FAX
John.Nunn@hcd.ca.gov

Additional Third Party Agent assignments will be issued as the need arises.

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Merced Regional Enterprise Zone

The Enterprise Zone Program targets economically distressed areas throughout California. Special state and local incentives encourage business investment and promote the creation of new jobs. The purpose of the program is to stimulate development by providing tax incentives to businesses and allow private sector market forces to revive the local economy.

Tax Benefits

Enterprise Zone companies are eligible for substantial tax credits and benefits including:

  • Hiring Credits - Firms can earn $37,440 or more in state tax credits for each qualified employee hired;
  • Up to 100% Net Operating Loss (NOL) carry-forward. NOL may be carried forward 15 years (suspended for tax years 2002 and 2003);
  • Corporations can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts;
  • Up-front expensing of certain depreciable property. Lenders to Zone businesses may receive a net interest deduction;
  • Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment;
  • Enterprise Zone companies can earn preference points on state contracts.

Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) promotes the hiring of individuals who qualify as members of target groups, by providing a federal tax credit incentive of up to $9,000 for employers who hire them.