California - Enterprise zone benefits still available; time is running out 

February 20:  Taxpayers with any activity in California need to consider benefits that may be available under the California enterprise zone program.

While the enterprise zone (EZ) program has been repealed, benefits for prior years are still available—but time is running out.

Taxpayers doing business in one of California’s 40 enterprise zones may still have many opportunities to secure benefits such as:

  • EZ benefits can be claimed on amended returns in open tax years.
  • Despite the repeal, hiring credits obtained for 2013 hires and earlier year hires can be generated for the full five-year period, and taxpayers have an extended period of time to certify eligible employees.
  • Despite the repeal, the net interest deduction for lenders can be obtained for 2013 loans and earlier year loans.
  • Credits earned before the repeal, but not fully used, can be carried forward for 10 years.

KPMG observation

Eligible taxpayers need to examine their operations and consider claiming EZ benefits before time runs out.

For more information, contact a KPMG State and Local Tax professional:

Jennifer Petersen

+1 415 963 7101

Tom Bertino

+1 949 885 5404

Mariela Kim

+1 949 885 5711

Brook Perez

+1 818 227 6905

Matt Savatsky

+1 415 963 8976

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Washington, DC 20006.

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