Common questions received by the Oakland Enterprise Zone:
1. Can only certain types of businesses qualify for the enterprise zone credits?
The EZ credits are available to all businesses operating in the qualified geographic area. However, these benefits are provided in the form of California income tax credits. Therefore, if you are a government agency or nonprofit entity then you will not be able to receive the benefit. It’s important to note that some nonprofit entities may California income tax on a certain portion of its activity.
2. Can only lower skilled/lower paid employees be qualified for the California Enterprise Zone Hiring Credit?
No, you will be able to qualify the lowest skilled worker along with the highest level executive for the EZ Hiring Credit. There are 13 primary qualification categories that cover a wide spectrum of areas. As such, you will be able to qualify employee from a wide variety of skill levels and compensation.
3. How do I find out if my business is in the Oakland Enterprise Zone?
You should review the EZ Street Range Listing to see if any of your business locations fall within the qualified area. If your location does not fall in the qualified area but feel it should have based on your review of the EZ Map then you can contact the Oakland Enterprise Zone for clarification at 510-238-7794.
4. Can I go back to prior years and claim the enterprise zone credits?
Yes, you will be able to back to the prior years that have an open statute of limitations on your California income tax return. There are no additional filing requirements that would preclude you from going back to those years with an open statute of limitations. In California, you will generally be doing with a 4-year statute of limitations. However, you should consult your tax professional for confirmation of your specific situation.
5. For qualifying an employee for the EZ Hiring Credit, does the employee hire have to relate to a new position versus filling an existing position?
No, the employee hire can relate to a new or existing position. However, the EZ program captures the distinction for informational purposes when you submit your voucher application so please have that information available.
6. How do employees qualify for the EZ Hiring Credit?
The EZ program focuses on applicants with certain barriers to employment. The program provides for 13 primary qualification categories that can be reviewed by clicking here. For an employee to qualify, certain conditions have to existing with the 90 day period prior to his or her employment with the EZ business. In order to take the credit for hiring a qualified employee, the EZ business may obtain a voucher certificate from the Oakland Enterprise Zone. Please review the Hiring Voucher section for more detail on this process.
7. What information do I need to gather to qualify an employee for the EZ Hiring Credit?
Generally, you must provide the specific documentation items as provided in the Vouchering Regulations. Please review the Acceptable Documentation by Category Table for a recap and review the actual regulations for additional information.
8. How do I obtain the required voucher certificate for claiming the EZ Hiring Credit?
You must submit a voucher application with supporting documentation and processing fee and submit to the Oakland Enterprise Zone for approval. Please review the Hiring Voucher section for more detail on this process.
9. How do I receive the benefits from claiming the credits?
The EZ Hiring Credit and EZ Sales and Use Tax Credit are received in the form of California income tax credits that are reported on the business California income tax return. The credits provide for a dollar for dollar reduction of your California tax liability. All unused credits are carried forward to subsequent years indefinitely.