All businesses are looking for ways to improve their bottom line, but one way is quite often overlooked, especially for California-based corporations. Utilizing a Long Beach CPA firm that understands the needs of businesses will go a long way in helping your company save money. Not only can a Long Beach CPA firm provide consultation services and long-range planning for California companies, but they can help your company when tax time rolls around. If you start now with a Long Beach CPA who has a clear understanding of Long Beach Enterprise Zone Credits and other types of business credits and incentives, your company will pay much less in taxes next year.
What are Long Beach Enterprise Zone Credits?
Your Long Beach CPA should be able to explain to you that California has forty-two Enterprise Zones located throughout the state. These are economically challenged areas where the state offers tax credits for companies that are located in these areas and hires people from these areas that typically have high unemployment rates. Your Long Beach accountant can determine if your company is located within an Enterprise Zone, and can then help you take advantage of the many tax credits that are available for those qualifying companies. Your Long Beach accountant may be able to help you with employer hiring credits, which are substantial. A Long Beach CPA firm can help you receive up to $13,000 annually per qualified employee using this type of tax credit. Other Enterprise Zone credits that your Long Beach CPA may recommend include the Sales/Use Tax Credits that can be applied when your company purchases pollution control, energy conservation, research and development or manufacturing and processing equipment. There is also an Employee-level tax credit that your Long Beach accountant can use for your employees that work in an Enterprise Zone, which can be up to $525 per year per employee.
In addition to state-based Enterprise Zone credits for which your corporation may be eligible, there are other credits that your Long Beach CPA should explain come to you via the Federal government. This includes the popular yet often underutilized WOTC California Tax Credit. This federal tax credit could give your company anywhere from $2,400 to $4,800 off your tax liability per qualifying employee annually, so it is well worth having your Long Beach CPA determine if your company would be eligible for these or other favorable tax credits. By planning for these now, you can maximize them to your greatest benefit come next tax year.
