What is an Enterprise Zone?

PASADENA ENTERPRISE ZONE
What is an Enterprise Zone?
The Enterprise Zone Program is a State of California economic initiative that stimulates economic growth and business investments
within economically disadvantaged areas that are in need of job growth and private investment. The State of California originally
designated 39 cities in California as having an Enterprise Zone Designation. As one of the original designated cities, Pasadena
received its first designation on April 10, 1992, which expired on April 9, 2007.
In 2006, Pasadena submitted an application for a new 15-year designation and successfully became the fifth City to receive final
designation. The new 15-year designation will begin on April 10, 2007 and expire on April 10, 2022.
What this means to existing Pasadena businesses
If your business location is within the previous, new, or within both the 1992 and 2007 Enterprise Zone designations, your business
can take advantage of significant state tax credits savings through: Hiring Credits, Sales and Use Tax Credits, Business Expense
Deductions, Net Operation Loss Carryover, and Net Interest Deductions for Lenders.
What this means to new Pasadena businesses
The Enterprise Zone Designation adds to the allure to opening or relocating a business to Pasadena. Our business-friendly
environment, significant tax credit savings, and local permit fee waivers help reduce the cost of doing business and offer great living
opportunities for employees.
Business Incentives
State Enterprise Zone Tax Credits
Hiring Credit Program
This five year state tax credit, potentially up to $37,000 per qualified employee, for full-time or part-time employees that meet one of
the twelve qualifying criteria under the Hiring Credit Program. Potential criteria includes but not limited to: previously laid off due to
plant closure or downsizing, military veteran, public assistance recipient, and resident of a targeted employment area. Enterprise Zone
business must obtain a Hiring Credit Voucher from the Pasadena Enterprise Zone Office.
• Targeted Employment Area Ranges for 2007 Designation
• 2007 Targeted Employment Area Map
• State Income Limits 2008 to 2000
Sales and Use Tax Credit
Allows Enterprise Zone businesses to claim a state tax credit equal to the sales and use tax paid on the purchase of qualified
equipment. Qualified equipment includes assets such as manufacturing, data processing, office, audio/video, and computer equipment.
Business Expense Deduction
Enterprise Zone businesses may deduct up to 40% of the cost of qualified property purchased for exclusive use in an Enterprise Zone
during the first year it’s placed in service.
Net Operating Loss
Enterprise Zone businesses may elect to carry forward 100% of their net operating loss for 15 years.
Net Interest Deduction for Lenders
Lenders can earn a deduction from income on the amount of net interest earned on loans made to Enterprise Zone businesses.
Businesses looking for an edge in applying for a loan should bring this credit up with your lender.
For additional information, click on Franchise Tax Board 1158 Publication or download the Pasadena Enterprise Zone Information
Packet (Under Construction).
PASADENA ENTERPRISE ZONE
Contact Us
Businesses are encouraged to contact the Enterprise Zone Office to find out how to utilize the State Tax Credits to their
fullest potential.
Contact Information
Melissa Alva, Enterprise Zone Manager
General Phone: (626) 744-4791
Direct Line: (626) 744-7347
Fax: (626) 744-7042
Email: [email protected]
Mailing Address:
City of Pasadena – Northwest Programs Office
Attn: Melissa Alva
100 North Garfield Avenue
PO Box 7115
Pasadena, CA 91109
Physical Office Address:
Northwest Programs Office
236 W. Mountain St., Suite 201
Pasadena, CA 91103
Information obtained from City of Pasadena website. Information deemed reliable, but not guaranteed.
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LEGEND
PASADENA 2007 ENTERPRISE ZONE
Coordinate System: State Plane California Zone V, FIPS 405 (Feet) Datum: NAD 1983
2007 Pasadena Enterprise Zone
The maps and associated data are provided without warranty of any kind.
All dimensions and spatial representations should be independently verified.
For verification, please contact the Northwest Office at (626) 744-4791.
Any resale of this information is prohibited.
Copyright © 2008, City of Pasadena. www.CityofPasadena.net
February 20, 2008
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