PASADENA ENTERPRISE ZONE What is an Enterprise Zone? The Enterprise Zone Program is a State of California economic initiative that stimulates economic growth and business investments within economically disadvantaged areas that are in need of job growth and private investment. The State of California originally designated 39 cities in California as having an Enterprise Zone Designation. As one of the original designated cities, Pasadena received its first designation on April 10, 1992, which expired on April 9, 2007. In 2006, Pasadena submitted an application for a new 15-year designation and successfully became the fifth City to receive final designation. The new 15-year designation will begin on April 10, 2007 and expire on April 10, 2022. What this means to existing Pasadena businesses If your business location is within the previous, new, or within both the 1992 and 2007 Enterprise Zone designations, your business can take advantage of significant state tax credits savings through: Hiring Credits, Sales and Use Tax Credits, Business Expense Deductions, Net Operation Loss Carryover, and Net Interest Deductions for Lenders. What this means to new Pasadena businesses The Enterprise Zone Designation adds to the allure to opening or relocating a business to Pasadena. Our business-friendly environment, significant tax credit savings, and local permit fee waivers help reduce the cost of doing business and offer great living opportunities for employees. Business Incentives State Enterprise Zone Tax Credits Hiring Credit Program This five year state tax credit, potentially up to $37,000 per qualified employee, for full-time or part-time employees that meet one of the twelve qualifying criteria under the Hiring Credit Program. Potential criteria includes but not limited to: previously laid off due to plant closure or downsizing, military veteran, public assistance recipient, and resident of a targeted employment area. Enterprise Zone business must obtain a Hiring Credit Voucher from the Pasadena Enterprise Zone Office. • Targeted Employment Area Ranges for 2007 Designation • 2007 Targeted Employment Area Map • State Income Limits 2008 to 2000 Sales and Use Tax Credit Allows Enterprise Zone businesses to claim a state tax credit equal to the sales and use tax paid on the purchase of qualified equipment. Qualified equipment includes assets such as manufacturing, data processing, office, audio/video, and computer equipment. Business Expense Deduction Enterprise Zone businesses may deduct up to 40% of the cost of qualified property purchased for exclusive use in an Enterprise Zone during the first year it’s placed in service. Net Operating Loss Enterprise Zone businesses may elect to carry forward 100% of their net operating loss for 15 years. Net Interest Deduction for Lenders Lenders can earn a deduction from income on the amount of net interest earned on loans made to Enterprise Zone businesses. Businesses looking for an edge in applying for a loan should bring this credit up with your lender. For additional information, click on Franchise Tax Board 1158 Publication or download the Pasadena Enterprise Zone Information Packet (Under Construction). PASADENA ENTERPRISE ZONE Contact Us Businesses are encouraged to contact the Enterprise Zone Office to find out how to utilize the State Tax Credits to their fullest potential. Contact Information Melissa Alva, Enterprise Zone Manager General Phone: (626) 744-4791 Direct Line: (626) 744-7347 Fax: (626) 744-7042 Email: [email protected] Mailing Address: City of Pasadena – Northwest Programs Office Attn: Melissa Alva 100 North Garfield Avenue PO Box 7115 Pasadena, CA 91109 Physical Office Address: Northwest Programs Office 236 W. Mountain St., Suite 201 Pasadena, CA 91103 Information obtained from City of Pasadena website. Information deemed reliable, but not guaranteed. 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All dimensions and spatial representations should be independently verified. For verification, please contact the Northwest Office at (626) 744-4791. Any resale of this information is prohibited. Copyright © 2008, City of Pasadena. www.CityofPasadena.net February 20, 2008 South Pasadena / 0 0.2 0.4 0.8 Miles Assessor Parcel City Boundary