Full Text
Tax Credit Example A business located in the Anaheim Enterprise Zone may reduce its State Income Tax by a percentage of the wages paid to one or more qualified employees. A business has the potential of earning $37,440 in tax credits per qualifying employee over a five-year period. For Example: If, on January 1, 2013, you hire a qualifying employee, and he/she works at your Enterprise Zone business as a full-time employee working 2080 hours, at $8.00 per hour*, the hiring tax credit would be calculated for five years as follows: YEAR ONE CREDIT $12.00 X 2080 HOURS=$24,960 X 50% = $12,480 YEAR TWO CREDIT $12.00 X 2080 HOURS=$24,960 X 40% = $9,984 YEAR THREE CREDIT $12.00 X 2080 HOURS=$24,960 X 30% = $7,488 YEAR FOUR CREDIT $12.00 X 2080 HOURS=$24,960 X 20% = $4,992 YEAR FIVE CREDIT $12.00 X 2080 HOURS=$24,960 X 10% =$2,496 TOTAL VALUE OF HIRING CREDIT = $37,440 *$12.00 IS THE CREDIT CAP VALUE (150% X CURRENT MINIMUM WAGE, $8.00). A BUSINESS CAN PAY MORE OR LESS THAN THE CAP, BUT ONLY RECEIVE THE CREDIT FOR THE ACTUAL WAGES PAID TO A MAXIMUM OF $12.00 PER HOUR.