Enterprise Zone & Tax Benefits

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Title: Enterprise Zone & Tax Benefits Posted: Friday January 30th, 2004
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Posted On: Friday January 30th, 2004 at 12:00am EST

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.

CAPSULE

What is an Enterprise Zone and what are examples of some tax benefits?

Examples of certain benefits include:


	Sales tax credits for equipment and machinery used in the manufacture, assembly or production of goods;
	Tax credits for qualified employees hired;
	Finance benefits (i.e. low-interest loans, tax-exempt industrial revenue bonds and net interest deductions for lenders);
	To utilize up to 100% net operating loss carry forward for future years.

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.