AB 93 was recently passed by the legislature and signed into law. This bill eliminates the Enterprise Zone Program, effective at the end of this year (January 1, 2014). Also, AB 106 was passed as cleanup and is now awaiting signature from Governor Brown, which is anticipated.
Here is what this means for your business with regards to the Hiring Credit:
1) If you have already hired an employee and obtained a voucher certificate, you may continue to accrue tax credits for that employee, even if they continue to work for you after the end of this year. The tax credits will continue to carry forward for up to 10 years from the end of this year. This means that while you may not typically have a tax event, the credits earned through 12-31-2013 that are claimed on your 2013 return or before can be used anytime through tax year 2023.
2) If you have hired an employee and have not yet obtained a voucher certificate, you should do so soon. AB 106 allows the IVEZ to issues vouchers/certifications through the end of 2014, however, you should get them in prior to filing your 2013 return to best calculate what you claim for the 10 year carry forward period.
3) If you are thinking of hiring new employees in the near future and would like to take advantage of the credit, IT IS NOT TOO LATE! Any employees hired before the end of the year are still eligible, and you can continue to claim the credit for as long as they remain with you.
The IVEZ is here to help. Please contact the IVEZ office with any questions and to meet with staff to learn what your business needs to do to take advantage of the Enterprise Zone before it goes away.
The Imperial Valley Enterprise Zone (IVEZ) is located within parts of the City of Brawley and portions of the unincorporated area of Imperial County. Go to Maps to get an overview and Street Listings to see the address ranges.