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Use California Tax Incentives To Bring Down The Cost Of Doing Business

09th December 2009
By Wayne Hemrick in Taxes
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California businesses stand to receive several different forms of California tax credit. Yet many businesses fail to take advantage of these california tax incentives, simply because they are unaware of their existence. California tax credit availability is especially true if your company is located in one of the California enterprise zone areas. Your company may earn California tax credit based on your hiring practices, as well as for conducting business and dealing with your company transportation in an ecologically friendly manner.

An enterprise zone is an area that the state of California has recognized as economically challenged. The state provides california enterprise zone tax credits to encourage entrepreneurs to start businesses in these zones, which help to provide jobs and improve the economy in these areas.

One way that you can earn California tax credit for your enterprise zone business is through your company's hiring practices. If you hire employees that live inside the enterprise zone, who have been out of work or have received government assistance, are military veterans, or belong to certain groups such as Native American, American Samoan or Native Hawaiian, or ex-offenders, your company would qualify for up to a $12,000 California tax credit per eligible employee. As you can see, this could be a significant amount of California tax credit for your business, so it is well worth looking into to see if you qualify.

Other California tax incentives are available for businesses making environmentally friendly choices in how they operate their businesses. If you install renewable energy features at your business site, such as solar water heaters, wind generators, photovoltaic systems or geothermal heat pumps, you would qualify for California energy credits of up to $4,000 on a total purchase cost of $10,000. Sales and use california energy credits are available, allowing you a tax credit of up to ten percent of the purchase cost of equipment used to control water or air pollution, equipment for energy conservation, as well as equipment used for manufacturing and processing or research and development.

Businesses as well as individuals can also benefit from California energy credits having to do with your choice of automobiles. If you purchase a hybrid or diesel vehicle that runs on alternative fuels such as hydrogen, ethanol, nitrogen gas or a vehicle with an electric motor would qualify for these California tax incentives.

This is just a sampling of the California tax credit available for business owners operating in an enterprise zone. For more information about these and other forms of tax credit for which your company may be eligible, contact a knowledgeable certified public account who can review your company and make specific recommendations.
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