The following is a summary of the five main tax incentives within the Enterprise Zone Program.
Business Expense Deduction
Business Expense Deduction for the costs of certain tangible, depreciable property up to a range between $20,000 and $40,000 in the first year placed in service.
Hiring Credit for 50% of first year wages paid to qualified new employees; over a five-year period, this credit can exceed $37,000 per new hire.
Net Interest Deduction for Lenders
Net Interest Deduction for Lenders making loans in the zone; lenders can deduct net interest income made on loans to trade or business located in the enterprise zone including business loans, mortgages and loans from non commercial sources.
Net Operating Loss Carryover
Net Operating Loss Carryover to future tax years to reduce the amount of taxable zone income.
Sales and Use Tax Credit
Sales and Use Tax Credit for sales and use tax paid on qualified equipment purchased for use within the zone - up to a $1 million of machinery cost on individual claims; up to $20 million a year on corporate claims.
Tax Incentive Handout