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Enterprise Zone & Tax Benefits
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Posted On: Friday January 30th, 2004 at 12:00am EST
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SUMMARY
An Enterprise Zone is defined as a geographical area within which businesses can obtain savings against their state income tax and other tax, hiring and finance incentives.
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CAPSULE
What is an Enterprise Zone and what are examples of some tax benefits?
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Examples of certain benefits include:
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Sales tax credits for equipment and machinery used in the manufacture, assembly or production of goods;
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Tax credits for qualified employees hired;
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Finance benefits (i.e. low-interest loans, tax-exempt industrial revenue bonds and net interest deductions for lenders);
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To utilize up to 100% net operating loss carry forward for future years.
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The purpose of the zone designation is to stimulate business investments and lower unemployment in distressed areas. The business gets the benefit of reducing the cost of doing business in a specific location. |
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