Hiring Tax Credits -- View a Hiring Tax Credit formula example here.
Business located in the Anaheim Enterprise Zone may reduce their State Income Tax by a percentage of the wages paid to one or more qualified employees. A business has the potential of earning $37,440 in tax credits per qualifying employee over a five-year period.
Click here for a list of categories of eligibility for "qualified employees."
If a business hires a qualified full-time employee, working 2080 hours
at $12.00 per hour*, the hiring tax credit would generate a tax savings of up to $37,440 per employee, over a five-year period.
There are many ways for employees to qualify including: individuals who live in targeted employment areas or individuals who have been recently laid-off to name just a few. The tax credit is retroactive to employees hired after the Anaheim Enterprise Zone designation date of February 1, 2012, and excess credits can be carried forward to offset future tax obligations.
Please Note: A business may or may not be able to make full use of a Hiring Credit of other benefits of the Anaheim Enterprise Zone program. We recommend that you contact your tax consultant for further information.
* $12.00 IS THE CREDIT CAP VALUE (150% X CURRENT MINIMUM WAGE, $8.00).
A BUSINESS CAN PAY MORE OR LESS THAN THE CAP, BUT ONLY RECEIVE THE CREDIT FOR THE ACTUAL WAGES PAID TO A MAXIMUM OF $12.00 PER HOUR.