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By Business Incentive Zone Looking for tax savings, lower electricity rates, or other business incentives? Search the map below to see if your business is located in an eligible Business Incentive Zone.
State Enterprise Zone
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By Incentive Type Even if you are not located in a Business Incentive Zone, click on the links below to see if your business is eligible for other lucrative benefits.
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STATE ENTERPRISE ZONES (SEZ)
Business Expense Deduction
Description: Qualified taxpayers may elect to expense 40% of eligible cost of a qualified property in the year it is placed in service instead of capitalizing the expense.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Discounted Electricity Rate
Description: Reduction of base electric rate over course of 60 months.
Eligibility: Commercial and industrial customers who are newly located in a State Enterprise Zone (SEZ), Federal Empowerment Zone (FEZ), or Renewal Community (RC) are eligible for a reduction on the base electric rate. Existing customers within such zones who increase energy consumption may also be eligible for LADWP EZ Rate.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp001137.jsp
Employer Hiring Credits
Description: Up to $35,100 over a 5-year period per each qualified employee can be claimed by an Enterprise Zone business as a tax credit.
Eligibility: Businesses located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Lower Parking Ratio
Description: Provides reduced parking requirements for Enterprise Zone businesses compared with other areas of the City.
Eligibility: Businesses located in a State Enterprise Zone (SEZ).
Lead Agency: Department of Building and Safety
More Info: Dial 3-1-1 to contact the Department of Building and Safety
Net Interest Deduction
Description: Qualified taxpayers are allowed to deduct net interest for qualified debts made to qualified debtors.
Eligibility: Businesses located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Net Operating Loss
Description: Eligible businesses may elect to carry forward 100% of its NOL for a 15 year period.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Sales or Use Tax Credit
Description: Tax credit equal to the sales and use tax paid or incurred in connection with the purchase of qualified property.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Sewer Facility Charge Exemption
Description: One-time lump sum payment exemption if the Sewer Facility Charge is over $17,000. The fee can be paid in installments over five years but interest is payable on any unpaid balance.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: Bureau of Sanitation
More Info: Contact the Bureau of Sanitation, Financial Management Division, at 1-800-540-0952.
Site Plan Review Fee Waiver
Description: Fee waiver for review of commercial or industrial architectural plans for projects of 40,000 square feet or greater located in an Enterprise Zone during an initial application for a site plan review.
Eligibility: Businesses located in a State Enterprise Zone.
Lead Agency: Department of Building and Safety
More Info: Dial 3-1-1 to contact the Department of Building and Safety
FEDERAL EMPOWERMENT ZONE (FEZ)
Business Tax Exemptions and Decreases
Description: Business tax reductions or business tax relief.
Eligibility: Businesses located in a Federal Empowerment Zone (FEZ).
Lead Agency: Office of Finance
More Info: http://www.lacity.org/finance/forms/EmpowermentZoneV4.frm
Discounted Electricity Rate
Description: Reduction of base electric rate over course of 60 months.
Eligibility: Commercial and industrial customers who are newly located in a State Enterprise Zone (SEZ), Federal Empowerment Zone (FEZ), or Renewal Community (RC) are eligible for a reduction on the base electric rate. Existing customers within such zones who increase energy consumption may also be eligible for LADWP EZ Rate.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp001137.jsp
Employee Wage Tax Credit
Description: Federal credit up to $3,000 for employees who are Empowerment Zone residents.
Eligibility: Businesses located in a Federal Empowerment Zone (FEZ).
Lead Agency: Community Development Department
More Info: http://www.lacity.org/CDD/bus_fedcred.html#ewc
Increased Section 179 Deduction
Description: Allows qualified businesses to take an increase in deduction up to $35,000 of the cost of eligible equipment purchases, subject to certain limitations, in the placed-in-service year of the equipment.
Eligibility: Businesses in a Federal Empowerment Zone (FEZ) or Renewal Community (RC).
Lead Agency: Internal Revenue Service
More Info: http://www.irs.gov/publications/p954/ar02.html#d0e670
Work Opportunity Tax Credit
Description: Federal tax credit of up to $2,400 eligible employee that encourages employers to hire from eight targeted groups of job seekers.
Eligibility: Businesses that hire persons between the ages of 18-39 who reside in either the Federal Empowerment Zone EZ) or the Federal Renewal Community (RC) area. There are eight additional eligibility categories, some of which are not dependent on the employee's address.
Lead Agency: California Employment Development Department
More Info: http://www.edd.ca.gov/wotcind.htm
RENEWAL COMMUNITY
Commercial Revitalization Deduction
Description: Businesses may elect an accelerated method to recover certain costs of new and/or substantially rehabilitated commercial buildings in a Renewal Community (RC).
Eligibility: Businesses located in a Renewal Community (RC).
Lead Agency: Community Development Department
More Info: Contact the IRS and refer to IRS Tax Form 4562.
Commercial Revitalization Deduction
Description: Reduction of base electric rate over course of 60 months.
Eligibility: Commercial and industrial customers who are newly located in a State Enterprise Zone (SEZ), Federal Empowerment Zone (FEZ), or Renewal Community (RC) are eligible for a reduction on the base electric rate. Existing customers within such zones who increase energy consumption may also be eligible for LADWP EZ Rate.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp001137.jsp
Gross Income Exclusion for Capital Gains
Description: A business that acquired an RC asset between January 1, 2002 and January 1, 2010 will not have to include in its gross income any qualified capital gain from the sale or exchange of the asset.
Eligibility: The business must hold the asset a minimum of five years. RC business stock, RC partnership interest, and RC business properties qualify as assets.
Lead Agency: Community Development Department
More Info: http://www.lacity.org/CDD/bus_renewal.html#zpcg
Increased Section 179 Deduction
Description: Allows qualified businesses to take an increase in deduction up to $35,000 of the cost of eligible equipment purchases, subject to certain limitations, in the placed-in-service year of the equipment.
Eligibility: Businesses in a Federal Empowerment Zone (FEZ) or Renewal Community (RC).
Lead Agency: Internal Revenue Service
More Info: http://www.irs.gov/publications/p954/ar02.html#d0e670
Renewal Community Tax Credit
Description: Allows businesses to take an annual tax credit of up to $1,500 for each employee who lives and works for the business in a Renewal Community (RC).
Eligibility: Businesses located in a Renewal Community (RC); tax credit available through 12/31/2009.
Lead Agency: Community Development Department
More Info: Contact the Los Angeles Community Development Department.
Work Opportunity Tax Credit
Description: Federal tax credit of up to $2,400 eligible employee that encourages employers to hire from eight targeted groups of job seekers.
Eligibility: Businesses that hire persons between the ages of 18-39 who reside in either the Federal Empowerment Zone EZ) or the Federal Renewal Community (RC) area. There are eight additional eligibility categories, some of which are not dependent on the employee's address.
Lead Agency: California Employment Development Department
More Info: http://www.edd.ca.gov/wotcind.htm
COMMUNITY REDEVELOPMENT PROJECT AREAS
Building Façade Lighting Program
Description: Promotes energy efficient lighting technologies, increases energy efficiency awareness, and improves the utilization of energy capacity during off-peak hours throughout the City of Los Angeles.
Eligibility: Businesses located in Community Redevelopment project areas.
Lead Agency: Department of Water and Power; Community Redevelopment Agency
More Info: Contact the LADWP Economic Development Group at 1-800-864-4409.
Community Redevelopment Grants and Loans
Description: Provides financial assistance to businesses by offering grant and loan programs in many of the Community Redevelopment project areas.
Eligibility: Businesses located in Community Redevelopment project areas.
Lead Agency: Community Redevelopment Agency
More Info: http://www.crala.net/internet-site/Other/grants_loans.cfm
Entertainment and Multimedia Business Tax Limitations
Description: Caps the business tax for eligible entertainment and media businesses at $25,000 plus 10 percent of the amount of tax in excess of $25,000 that would otherwise be due
Eligibility: Businesses located in the Hollywood or North Hollywood Redevelopment Areas that generate more than 50% of gross receipts from the entertainment and/or multimedia business activities.
Lead Agency: Office of Finance
Apply Online: http://www.lacity.org/finance/pdf/Redev_Hollywood_questionnaire.pdf
FOREIGN TRADE ZONES
Customs Duties Reduction
Description: Allow importers and exporters to defer, reduce, or eliminate U.S. Customs duties. Over twenty sites are available in the Los Angels area.
Eligibility: Importers and exporters in eligible areas.
Lead Agency: Port of Los Angeles
More Info: http://www.portoflosangeles.org/facilities/ftz_202.asp
RECYCLING MARKET DEVELOPMENT ZONE
Direct Loan Program
Description: Provides direct loans to eligible businesses and non-profit organizations that manufacture from recycled raw materials, produce new recycled products, or that reduce waste resulting from manufacturing. These loans promote market development of post-consumer and secondary waste materials.
Eligibility: Business located in the City of Los Angeles that manufacture from recycled raw materials, produce new recycled products, or that reduce waste resulting from manufacturing.
Lead Agency: Bureau of Sanitation
More Info: http://www.ciwmb.ca.gov/rmdz/LACity/Default.asp
WATER AND POWER INCENTIVES
Building Façade Lighting Program
Description: Promotes energy efficient lighting technologies, increases energy efficiency awareness, and improves the utilization of energy capacity during off-peak hours throughout the City of Los Angeles.
Eligibility: Businesses located in Community Redevelopment project areas.
Lead Agency: Department of Water and Power; Community Redevelopment Agency
More Info: Contact the LADWP Economic Development Group at 1-800-864-4409.
Commercial Energy Efficiency and Water Conservation Incentives
Description: Offers a number of rebates and programs for our commercial, industrial, and institutional customers.
Eligibility: New and existing LADWP customers.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp001859.jsp
Commercial Solar Incentive Program
Description: Provides an incentive payment to LADWP customers that purchase and install their own solar power systems. Currently, LADWP also provides an additional incentive payment for systems using PV modules manufactured in the City of Los Angeles.
Eligibility: New and existing LADWP customers.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/cms/ladwp004196.jsp
Discounted Electricity Rate
Description: Reduction of base electric rate over course of 60 months.
Eligibility: Commercial and industrial customers who are newly located in a State Enterprise Zone (SEZ), Federal Empowerment Zone (FEZ), or Renewal Community (RC) are eligible for a reduction on the base electric rate. Existing customers within such zones who increase energy consumption may also be eligible for LADWP EZ Rate.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp001137.jsp
Smooth Power Program
Description: Offers both technical assistance and project financing to commercial and industrial customers.
Eligibility: New and existing LADWP customers.
Lead Agency: LADWP
More Info: Contact the LADWP Economic Development Group at 1-800-864-4409.
Utility Infrastructure Loan Program
Description: Addresses the need for investment capital by growing local businesses for which short-term, low-cost financing is not readily available.
Eligibility: New and existing DWP customers with good credit rating
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp000546.jsp
BUSINESS TAX RELIEF
Business Tax Exemptions and Decreases (FEZ)
Description: Business tax reductions or business tax relief.
Eligibility: Businesses located in a Federal Empowerment Zone (FEZ).
Lead Agency: Office of Finance
More Info: http://www.lacity.org/finance/finA2.htm
Business Tax Exemptions/Incentives/Assistance
Description: Business tax exemptions are available for qualifying new businesses, small businesses and creative artists. Reduced tax rates available to motion picture production businesses as well as businesses taxed on gross receipts. A Taxpayer Advocate Program is available to those taxpayers that have complex business tax matters that have not been resolved in the usual method.
Eligibility: Businesses registered with the Office of Finance
Lead Agency: Office of Finance
More Info: www.lacity.org/finance
Entertainment and Multimedia Business Tax Limitations
Description: Caps the business tax for eligible entertainment and media businesses at $25,000 plus 10 percent of the amount of tax in excess of $25,000 that would otherwise be due.
Eligibility: Businesses located in the Hollywood or North Hollywood Redevelopment Areas that generate more than 50% of gross receipts from the entertainment and/or multimedia business activities.
Lead Agency: Office of Finance
More Info: http://www.lacity.org/finance/finA2.htm
Use Tax Rebate Program
Description: Businesses that participate in the City's Use Tax Rebate Program can qualify for a rebate of 20% on the additional State collected use tax (67.5%) remitted by the business.
Eligibility: Businesses that pay Use Tax to lessors or out-of-state vendors
Lead Agency: Office of Finance
More Info: http://www.lacity.org/finance/finA3q.htm
ENTERTAINMENT/MEDIA INCENTIVES
Entertainment and Multimedia Business Tax Limitations
Description: Caps the business tax for eligible entertainment and media businesses at $25,000 plus 10 percent of the amount of tax in excess of $25,000 that would otherwise be due.
Eligibility: Businesses located in the Hollywood or North Hollywood Redevelopment Areas that generate more than 50% of gross receipts from the entertainment and/or multimedia business activities.
Lead Agency: Office of Finance
More Info: http://www.lacity.org/finance/finA2.htm
ALL BUSINESS INCENTIVES
Building Façade Lighting Program
Description: Promotes energy efficient lighting technologies, increases energy efficiency awareness, and improves the utilization of energy capacity during off-peak hours throughout the City of Los Angeles.
Eligibility: Businesses located in Community Redevelopment project areas.
Lead Agency: Department of Water and Power; Community Redevelopment Agency
More Info: Contact the LADWP Economic Development Group at 1-800-864-4409.
Business Expense Deduction
Description: Qualified taxpayers may elect to expense 40% of eligible cost of a qualified property in the year it is placed in service instead of capitalizing the expense.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Business Tax Exemptions and Decreases
Description: Business tax reductions or business tax relief.
Eligibility: Businesses located in a Federal Empowerment Zone (FEZ).
Lead Agency: Office of Finance
More Info: http://www.lacity.org/finance/finA2.htm
Business Tax Exemptions/Incentives/Assistance
Description: Business tax exemptions are available for qualifying new businesses, small businesses and creative artists. Reduced tax rates available to motion picture production businesses as well as businesses taxed on gross receipts. A Taxpayer Advocate Program is available to those taxpayers that have complex business tax matters that have not been resolved in the usual method.
Eligibility: Businesses registered with the Office of Finance
Lead Agency: Office of Finance
More Info: www.lacity.org/finance
Commercial Energy Efficiency and Water Conservation Incentives
Description: Offers a number of rebates and programs for our commercial, industrial, and institutional customers.
Eligibility: New and existing LADWP customers.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp001859.jsp
Commercial Revitalization Deduction
Description: Businesses may elect an accelerated method to recover certain costs of new and/or substantially rehabilitated commercial buildings in a Renewal Community (RC).
Eligibility: Businesses located in a Renewal Community (RC).
Lead Agency: Community Development Department
More Info: Contact the IRS and refer to IRS Tax Form 4562.
Commercial Solar Incentive Program
Description: Provides an incentive payment to LADWP customers that purchase and install their own solar power systems. Currently, LADWP also provides an additional incentive payment for systems using PV modules manufactured in the City of Los Angeles.
Eligibility: New and existing LADWP customers.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/cms/ladwp004196.jsp
Community Redevelopment Grants and Loans
Description: Provides financial assistance to businesses by offering grant and loan programs in many of the Community Redevelopment project areas.
Eligibility: Businesses located in Community Redevelopment project areas.
Lead Agency: Community Redevelopment Agency
More Info: http://www.crala.net/internet-site/Other/grants_loans.cfm
Discounted Electricity Rate
Description: Reduction of base electric rate over course of 60 months.
Eligibility: Commercial and industrial customers who are newly located in a State Enterprise Zone (SEZ), Federal Empowerment Zone (FEZ), or Renewal Community (RC) are eligible for a reduction on the base electric rate. Existing customers within such zones who increase energy consumption may also be eligible for LADWP EZ Rate.
Lead Agency: Department of Water and Power
More Info: http://www.ladwp.com/ladwp/cms/ladwp001137.jsp
Employee Wage Tax Credit
Description: Federal credit up to $3,000 for employees who are Empowerment Zone residents.
Eligibility: Businesses located in a Federal Empowerment Zone (FEZ).
Lead Agency: Community Development Department
More Info: http://www.lacity.org/CDD/bus_fedcred.html#ewc
Employer Hiring Credits
Description: Up to $35,100 over a 5-year period per each qualified employee can be claimed by an Enterprise Zone business as a tax credit.
Eligibility: Businesses located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Entertainment and Multimedia Business Tax Limitations
Description: Caps the business tax for eligible entertainment and media businesses at $25,000 plus 10 percent of the amount of tax in excess of $25,000 that would otherwise be due
Eligibility: Businesses located in the Hollywood or North Hollywood Redevelopment Areas that generate more than 50% of gross receipts from the entertainment and/or multimedia business activities.
Lead Agency: Office of Finance
Apply Online: http://www.lacity.org/finance/pdf/Redev_Hollywood_questionnaire.pdf
Gross Income Exclusion for Capital Gains
Description: A business that acquired an RC asset between January 1, 2002 and January 1, 2010 will not have to include in its gross income any qualified capital gain from the sale or exchange of the asset.
Eligibility: The business must hold the asset a minimum of five years. RC business stock, RC partnership interest, and RC business properties qualify as assets.
Lead Agency: Community Development Department
More Info: http://www.lacity.org/CDD/bus_renewal.html#zpcg
Increased Section 179 Deduction
Description: Allows qualified businesses to take an increase in deduction up to $35,000 of the cost of eligible equipment purchases, subject to certain limitations, in the placed-in-service year of the equipment.
Eligibility: Businesses in a Federal Empowerment Zone (FEZ) or Renewal Community (RC).
Lead Agency: Internal Revenue Service
More Info: http://www.irs.gov/publications/p954/ar02.html#d0e670
Lower Parking Ratio
Description: Provides reduced parking requirements for Enterprise Zone businesses compared with other areas of the City.
Eligibility: Businesses located in a State Enterprise Zone (SEZ).
Lead Agency: Department of Building and Safety
More Info: Dial 3-1-1 to contact the Department of Building and Safety.
Net Interest Deduction
Description: Qualified taxpayers are allowed to deduct net interest for qualified debts made to qualified debtors.
Eligibility: Businesses located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Net Operating Loss
Description: Eligible businesses may elect to carry forward 100% of its NOL for a 15 year period.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Partial Exclusion of Capital Gains
Description: Allows eligible businesses to exclude 60% of capital gains available from the same of small business stock issued by a Renewal Community business that is a C corporation with gross assets of $50 million or less.
Eligibility: Businesses located in a Renewal Community (RC).
Lead Agency: Internal Revenue Service
More Info: http://www.irs.gov/publications/p954/ar02.html#d0e1056
Renewal Community Tax Credit
Description: Allows businesses to take an annual tax credit of up to $1,500 for each employee who lives and works for the business in a Renewal Community (RC).
Eligibility: Businesses located in a Renewal Community (RC); tax credit available through 12/31/2009.
Lead Agency: Community Development Department
More Info: Contact the Los Angeles Community Development Department.
Sales or Use Tax Credit
Description: Tax credit equal to the sales and use tax paid or incurred in connection with the purchase of qualified property.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: California Franchise Tax Board
More Info: http://www.ftb.ca.gov/aboutFTB/manuals/audit/edam/edamfront.shtml
Sewer Facility Charge Exemption
Description: One-time lump sum payment exemption if the Sewer Facility Charge is over $17,000. The fee can be paid in installments over five years but interest is payable on any unpaid balance.
Eligibility: Business located in a State Enterprise Zone (SEZ).
Lead Agency: Bureau of Sanitation
More Info: Contact the Bureau of Sanitation, Financial Management Division, at 1-800-540-0952.
Site Plan Review Fee Waiver
Description: Fee waiver for review of commercial or industrial architectural plans for projects of 40,000 square feet or greater located in an Enterprise Zone during an initial application for a site plan review.
Eligibility: Businesses located in a State Enterprise Zone.
Lead Agency: Department of Building and Safety
More Info: Dial 3-1-1 to contact the Department of Building and Safety
Smooth Power Program
Description: Offers both technical assistance and project financing to commercial and industrial customers.
Eligibility: New and existing LADWP customers.
Lead Agency: Department of Water and Power.
More Info: Contact the LADWP Economic Development Group at 1-800-864-4409.
Utility Infrastructure Loan Program
Description: Addresses the need for investment capital by growing local businesses for which short-term, low-cost financing is not readily available.
Eligibility: New and existing DWP customers with good credit rating
Lead Agency: Department of Water and Power
More Info: Contact the LADWP Economic Development Group at 1-800-864-4409.
Use Tax Rebate Program
Description: Businesses that participate in the City's Use Tax Rebate Program can qualify for a rebate of 20% on the additional State collected use tax (67.5%) remitted by the business.
Eligibility: Businesses that pay Use Tax to lessors or out-of-state vendors
Lead Agency: Office of Finance
More Info: http://www.lacity.org/finance/finA3q.htm
Work Opportunity Tax Credit
Description: Federal tax credit of up to $2,400 eligible employee that encourages employers to hire from eight targeted groups of job seekers.
Eligibility: Businesses that hire persons between the ages of 18-39 who reside in either the Federal Empowerment Zone EZ) or the Federal Renewal Community (RC) area. There are eight additional eligibility categories, some of which are not dependent on the employee's address.
Lead Agency: California Employment Development Department
More Info: http://www.edd.ca.gov/wotcind.htm