The presentation was developed to drive business and public\'s awareness to maximize the ongoing hiring tax credits and the stimulus $$ hiring tax credits, from both federal and state level. Presentation aims to drive the job creations and boost the local economic growth through maximizing government resources and programs.

1. Hiring Tax Credits & Incentives;
Resources to save you money

2. Hiring Tax Credits
• Federal hiring tax credits
– New Hire Act
– Work Opportunity Tax Credits WOTC
• State, County, City hiring tax credits
– California New Job Credits for Small Businesses
– California Enterprise zone Hiring Tax Credits
and Business Incentives
• Oakland Enterprise zone
• Other Business Resources
• Sources

3. Hiring Tax Credits

4. Federal hiring tax credits
Stimulus
$$$
Stimulus Current Federal
$$$ Tax Credits

5. Stimulus - New HIRE Act
• The new HIRE Act, enacted March 18, 2010
valid until Dec 31, 2010.
• Payroll tax exemption: Employer may be
exempt from 6.2% of share of social security
tax on wages paid to qualified employees,
effective for wages paid from March 19, 2010
through December 31, 2010.
• New hire retention credit: Employer may claim an
additional new hire retention credit, up to $1,000 for each
qualified employee you keep as an employee for at least a
year and whose wages are not significantly reduced in the
second half of the year.

6. Stimulus - New HIRE Act
 Qualified employers:
• Small or large business
• Tax-exempt organization
• Public college or university
• Indian tribal government or farmer
• Exception: household employers, governmental
employers, other than public colleges, universities
do not qualify.
 Qualified employees:
Beginning employment with you after Feb 3, 2010 and
before Jan 1, 2011.
Who were either unemployed or worked 40 hours or
less during the previous 60 days.

7. New HIRE credits - How to apply?
• Must get a form W11 or similar
signed affidavit by new hires
before beginning employment.
• New employees certify they
were not employed for more
than 40 hours during the 60 days.

8. Work Opportunity Tax Credit WOTC
• WOTC program was created by the Small Business
Job Protection Act of 1996.
• The Small Business & Work Opportunity Tax Act of
2007 extends the WOTC Tax Credit through August
31, 2011.
• Purposes:
To promote the hiring of individuals who qualify
as a member of a target group.
To provide a federal tax credit to employers
who hire these individuals.

9. WOTC – Qualifying Target Groups

10. WOTC – Qualified Target groups (cont.)

11. Empowerment Zones & Renewal Community
Area - Address Locator
• To find a business address or a new hire live in mpowerment
Zone and Renewal Community Area:
Visit Address Locator at the US Department of
Housing and Urban Development
http://egis.hud.gov/egis/cpd/rcezec/ezec_open.htm
Enter the street address and zip code, you will get a
report if the address is located on the EZ/RCA
• Final determination of zone eligibility rests with the
Department of Housing and Community Development.

12. WOTC - How much you can save?
• Employers may qualify for a tax credit of up to $9,000 if
the employee is a member of a target group.
• Quick facts:
$2,400 for each new adult hire
$1,200 for each new summer youth hire
$4,800 for each new disabled veteran hire
$9,000 for each new long-term family assistance
recipient hired over a two-year period.

13. WOTC - How much can I save?
• Target groups A through H:
120-400 hours = 25% of up to $6,000 in qualified wages
for a maximum credit of $1,500
400+ hours = 40% of up to $6,000 in qualified wages for a
maximum credit of $2,400.
• Target group I
40% of up to $10,000 in qualified first year wages for a
maximum of $4,000
50% of up to $10,000 in qualified second year wages for a
maximum of $5,000.
• Disabled Veteran Tax Credit
The qualifying wage for disabled veteran is $12,000,
which provides employers a maximum tax credits of
$4,800.

14. WOTC - How do I apply?
• 2 forms you will need to complete with your new
employee:
– ETA 9601(or 9602): Individual Characteristics
form must be completed on or before the
applicant is offered employment.
IRS 8850 – Prescreening Notice and Certification
Request must be submitted to the EDD
NO LATER THAN THE 28TH DAY
AFTER THE APPLICANT STARTS WORK.

15. WOTC - How do I apply? (cont.)
• In California, EDD processes all requests for WOTC certifications for
California employers. Mail forms to :
EDD WOTC CENTER
2901 50TH Street
Sacramento, CA 95817
• The WOTC Center will send you a Work Opportunity Tax Credit
Certification if the applicant is qualified.

16. California State, County, City
Hiring Tax Credits
Stimulus
$$$
Ongoing
business
incentives

17. California New Job Credits
for Small Businesses – Stimulus $$
• A new tax credit of up to
$3,000 for each additional
full-time employee hired is
available to qualified small
businesses.
• The total amount of credit
available to be claimed by
all taxpayers is capped at
$400 million.

18. California New Job Credits
for Small Businesses – Stimulus $$
To qualify
• Effective January 1, 2009, any small businesses with 20
employees or less, not located in the Enterprise Zone that
adds one or more full time positions .
Each qualified full-time hourly employee is paid wages for not
less than an average of 35 hours per week.
– Each qualified full-time salaried employee is within the scope
of Section 515 of the Labor Code.

19. California New Job Credits
for Small Businesses – Stimulus $$
Exception:
An employer may not claim the credit for those employees
who are any of the following:
Certified as a qualified employee in an enterprise zone or
targeted tax area.
Certified as a qualified disadvantaged individual in a
manufacturing enhancement area.
Certified as a qualified disadvantaged individual or qualified
displaced employee in a local agency military base recovery
area.
An employee whose wages are included in calculating any
other credit allowed.

20. California New Job Credits
How Do I apply?
• No need to apply for California New Job Credits
• Just claim the credit on a 2009 Personal Income Tax or
Business Entity Tax Return using
Form 3527 - New Jobs Credit.
• Source
http://www.ftb.ca.gov/businesses/New_Jobs_Credit.s
html

21. California Hiring Tax Credits &
Business Incentives - Enterprise Zone
42 enterprise zones in
California
http://www.caez.org

22. How Can the Enterprise Zone
Benefit You?

23. California Enterprise Zone
Qualified Group

24. Enterprise Zone &Target Employment Area
Address locator
• To locate Map & Street range of Enterprise Zone &
Target Employment Area TEA
http://www.hcd.ca.gov/fa/cdbg/ez/enterprise/newmap.html
• Final determination of zone eligibility rests with the
Department of Housing and Community Development.

25. California Enterprise Zone
Address Locator

26. California Renewal Communities, Empowerment
Zones, Enterprise Communities (RC /EZ /Ecs)
• Designed to encourage businesses to open, expand, and to hire
local residents.
• Incentives for eligible businesses of all sizes in Empowerment
Zones and Renewal Communities.
– Employment credits
– 0% tax on capital gains
– Increased tax deductions on equipment
– Accelerated real property depreciation,
– Other incentives.
• California RC /EZ /ECs: Frenos, Log Angeles, Santa Ana, San
Diego, San Francisco, Orange Cove, Parlier, and the counties of
Imperial & Riverside.

27. Oakland Enterprise Zone
Oakland Enterprise
Zone is one of the
largest urban zones
in CA
Consider to start or
expand your
business in
Enterprise zone
ww.ezoakland.com
call (510) 238-7794)

28. More Business Resources & Tax Incentives
Federal
• The Stimulus Package: Tax Cuts for Businesses
• Energy efficiency & Renewable energy tax credits
• COBRA Health Insurance Continuation Premium Subsidy
• Section 179 accelerated depreciation
• Disabled Access Credit
• Architectural & Transportation Tax Deduction

29. More Business Resources & Tax Incentives
California
• California currently has four types of Economic
Development Areas (EDAs):
Enterprise Zones (EZs)
Local Agency Military Base Recovery Areas
(LAMBRAs)
Manufacturing Enhancement Areas (MEAs)
The Targeted Tax Area (TTA)

30. Local Business Resources
• Alameda One Stop Business & Career Center.
• West Alameda Business Association
• East Bay Works
• East Bay Economic Development Alliance EDA
 We will keep you updated with new business
incentives and tax credits.

31. Local Business Resources
• San Francisco:
Clean Technology payroll tax exclusion
Biotechnology payroll tax exclusion
Film production incentives
• Alameda County Subsidized Employment programs
expired September 30, 2010

32. Sources
• http://www.business.ca.gov/Portals/
• http://www.hcd.ca.gov/fa/cdbg/ez/
• http://www.caez.org
• www.ezoakland.com
• http://eastbayworks.com
http://www.edd.ca.gov/Jobs_and_Training/
http://www.ftb.ca.gov/businesses/New_Jobs_Credit.shtml
• http://www.hcd.ca.gov/fa/cdbg/ez/enterprise/newmap.html
• http://www.eastbayeda.org/business_resources_incentives/index
.asp