Move your production offices to Pasadena’s Enterprise Zone and receive the following benefits: 

Hiring Tax Credit:   Claim 50% of your qualified employee’s wages (up to $9.37 per hour is claimable x 50%  x the # of hours they worked) in their first year of employment.  The credit percentage decreases by 10% annually.

Sales or Use Tax Credit: Receive a credit for the full amount of the sales tax you paid on equipment needed for your business.  For example, if you paid $1million dollars for new equipment and 8% sales tax, your tax credit would be 80,000 dollars (1 million x 8%). 

Business Expense Deduction:  Write off 40% of the cost of qualified equipment in its first year of service.  This can be written off as a business expense instead of a capital expense.

Net Operating Loss Carry Over:  100% of your business’s net operating loss may be carried over 15 years, instead of 50 percent for 5 years as is California law for other businesses.

Net Interest Deduction:  This applies to lenders who are providing a loan to you.  The lender may write off the net interest on your loan minus their expenses in making you the loan. 

Your Employees Also Receive a Tax Credit:  Employees receive a tax credit of 5% of up to the first $10,500 wages earned each year.