Merced County Enterprise Zone

Merced County originally was designated an Enterprise Zone on December 16, 1992 and expired on December 16, 2006, (see map). Our second Enterprise Zone was certified on December 17, 2006 and is scheduled to expire on December 17, 2021, (see map). We are issuing the hiring credits for the expired Enterprise Zone until December 16, 2011.

Vouchering

If you need assistance with the Enterprise Zone Hiring Tax Credits or would like to submit an Enterprise Zone Voucher Request please contact the:

Merced County Dept. of Workforce Investment
Attn: Enterprise Zone
1880 Wardrobe Ave
Merced CA 95341

Business Resource Unit
Phone: 209-724-2001

Email: hiringcredits@co.merced.ca.us

Fees

There is a non-refundable processing fee of $70.00 per application due at the time the application is submitted. Checks made payable to Merced County Dept. of Workforce Investment. The fees cover processing and electronic record retention of the application.

Frequently Asked Questions (FAQ)

Hiring Credit Estimator

• Basic Calculator Estimator (The basic calculator estimator will give you an estimate of yearly credit for a 5 year period based on a January 1 to December 31 tax year.)
• Advanced Calculator Estimator (The advanced calculator estimator will give you an estimated yearly credit for a 5 year period based on your actual tax year.)

• 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.

• Business Eligibility

Businesses located at qualified addresses in an Enterprise Zone are eligible for program benefits. There are 42 Enterprise Zones located throughout California. The State designates Enterprise Zones for a 15-year period. To see if your business may be located in the Merced County Enterprise Zone, see the street address listing. (The street listing is only a guide, you should contact the Enterprise Zone Manager to confirm your address is in the Zone before proceeding.) For a more advanced search you can check the parcels listings.

Which employees qualify my business for a hiring tax credit?

A “qualified employee” is an employee who:

• Ninety percent of the work must be directly related to a trade or business activity in the enterprise zone
• Performs at least 50% of the work within the boundaries of the zone;
• Is a regular employee, not a temporary or contract worker; and
• Is part-time or full-time

• In addition, a “qualified employee” must be currently or 90 days prior to their hire date, one of the following:

• A person eligible to be a voluntary or mandatory participant in CalWorks
• A person receiving or eligible to receive subsidized employment, training or services funded by WIA
• A member of a targeted group as defined in the Federal Work Opportunity Tax Credit (WOTC)
• An economically disadvantaged individual 14 years of age or older
• A qualified dislocated worker
• A disabled individual eligible for, enrolled in, or who completed a state rehabilitation program
• A service connected disabled veteran
• A veteran of the Vietnam era
• A veteran who recently separated from military service (48 months prior to hire date)
• An ex-offender
• A person eligible for or recipient of:
• SSI benefits
• Temporary Assistance for Needy Families (TANF)
• State and local general assistance
• A Native American
• A resident of a Targeted Employment Area (TEA)
• Expired Zone, 01/01/97 to 12/16/06
• Dos Palos TEA Map
• Merced TEA Map
• Street Address List
• Current Zone, 12/17/06 to 12/17/21
• Merced County Map
• Street Address List
• Neighboring Counties TEA’s
• Fresno County TEA Street Address List (01/27/07 - 01/27/22)
• Stanislaus County TEA Street Address List (11/16/05 - 11/16/20)

• Enterprise Zone Hiring Tax Credit Voucher Applications

• Voucher Application
• Income Verification Worksheet

• Enterprise Zone Management

For more information or an assessment of potential benefits regarding the Merced County Enterprise Zone, contact the Merced County Department of Workforce Investment at (209)724-2001 or visit their web site http://www.mercedworknet.com/

State of California Housing and Community Development contact info

For technical assistance or questions regarding Enterprise Zone (applications, boundaries, expansions) or Hiring Credits (voucher application or regulations).

Please write to etips@hcd.ca.gov for quickest response.

State of California, Franchise Tax Board contact info

Please call the Franchise Tax Board HOTLINE @ (916) 845-3464 for any question regarding tax return preparation or tax calculations. For more information, see Enterprise Zone Business Booklet 3805Z listed below by year:

.

2001 2002 2003 2004 2005 2006 2007 2008 2009

Links

California Department of Housing and Community Development

California Association of Enterprise Zones

If you need assistance with the Enterprise Zone Hiring Tax Credits or the forms please contact the Business Services Unit of the Department of Workforce Investment at 209-724-2001.