Hiring Tax Credit

Eligibility     
If you operate a business in an Enterprise Zone (EZ), you are eligible to take advantage of the State’s tax incentives.  To claim the tax credits, file the appropriate forms at tax time – pre-qualifying is not required.  The Hiring Tax Credit is the only credit that requires a signed voucher by the EZ Vouchering Agent.

If you hire new employees or you are planning an expansion, this tax credit can save you thousands of dollars over the course of five years.  By hiring “qualified” employees, you can claim up to 50% of your employee’s wages in the first year of employment.  The credit percentage decreases by 10% annually, phasing out after five years.

Provisions
-“Qualified employees” must perform at least 50% of their work within the EZ boundaries, and meet specified criteria at the time of hire, such as one of the following:

-Receive subsidized employment, training or services under WIA; or

-Be registered under CalWORKS; or

-Be certified under the Work Opportunity Tax Credit (WOTC); or

-Be a resident of a Targeted Employment Area.

For a complete list of eligibility criteria, see “Which Employees Qualify?” on pages 16-17 of SDREZ Vouchering Handbook: VoucheringHandbook.pdf

Vouchering Process

Vouchering is the process of screening and documenting new hires to determine if the employee qualifies a business for the Hiring Tax Credit.

Other advantages include:

-No-cost job referral service used to find qualified employees whose wages can be claimed as tax credits.  Contact the local hiring vouchering agent Tina Hines at (619) 236-6305 or Thines@sandiego.gov.