Incentives
The City of Yuba City is located in the Yuba-Sutter Enterprise Zone. The Enterprise Zone helps businesses provinding five incentives which reduce a company's tax liability to the State of California:
  • Hiring Tax Credit: If you hire an eligible employee to work in the Zone, you may qualify for a state hiring tax credit. Each employee your business retains for five years could save you up to $37,440!
  • Sales and Use Tax Credit: If you buy manufacturing, data processing, or communications equipment such as computers, copy machines, telephone systems, and fax machines for use in a business inside the Zone, your company may be eligible for the sales and use tax credit. In any year, individuals can claim a credit on the first $1,000,000 of qualifying purchases, while corporations can claim the credit on the first $20,000,000. This credit can be claimed in addition to the Manufacturer's Investment Credit (MIC) you may also qualify to receive.
  • Business Expense Deduction: You can deduct the cost of each qualifying item of business equipment, furniture and fixtures (or other depreciable personal property) as a business expense in the year you place it into service maximum deduction of $20,000). You can also depreciate this property as you would normally, giving you additional benefits over the life of the property.
  • Net Operating Loss Carryover: Individuals or corporations in the Zone who show a net operating loss may be able to carry that loss over to future years to reduce future tax liability. Minimum taxes may still apply.
  • Interest Deductions for Lenders: A bank or individual making a loan to a business whose sole activity takes place in the Zone may deduct direct expenses incurred in making the loan from the interest income. The lender may also take a deduction equivalent to the net interest produced by the loan. As a borrower, this could mean more favorable rates or terms on a business loan.
  • Franchise Tax Board: The FTB administers tax related incentives for taxpayers conducting business activities in Enterprise and other incentive zones. Click here for an FAQ About Enterprise Zone Tax Incentives.

For more information on the Yuba Sutter Enterprise Zone:
           Yuba Sutter Enterprise Zone @ www.yubasutterez.com/
           State of Calfiornia @ www.hcd.ca.gov/fa/cdbg/ez/

For more information on business programs and services click Business Resources.