Good news for Santa Ana businesses! The recent tax bill included an extension of the Federal Empowerment Zone tax credit program through 2016. That means that if your business is located within the zone, you are entitled to a tax credit of up to $3,000 for wages paid to each eligible employee. Santa Ana’s Federal Empowerment Zone covers a large portion of the city. We can let you know if your business is located in the FEZ and let you know more about this valuable tax credit.
Additionally, the Work Opportunity tax credit (WOTC) has been extended through December 31, 2019. This credit is available to all employers, regardless of location. As an employer, you receive this tax credit by hiring an employee who falls into a targeted group. You may receive a tax credit up to $9,600 on wages paid to each eligible employee. Examples of eligible employees include veterans, recipients of government aid, or summer youth employees. This program recently added a new eligibility category for the long-term unemployed.
Credits for both programs pass through your partnership or S-corporation and can be claimed on your personal tax return as a credit against your federal income tax liability.
For more information about these valuable federal tax credits, contact LSL today at 714.569.1000.
By: Carolyn A. Bryant
