AVEZ Hiring Tax Credit Calculator - City of Palmdale, CA Official Web Site

Hiring Tax Credit

If you hire an employee to work in the Zone who is eligible for the Workforce Investment Act (WIA), the Greater Avenues for Independence Program (GAIN), and/or is a resident of a Targeted Employment Area (TEA), you may qualify for a hiring tax credit over a five-year period. The maximum benefit is based on 150 percent of the current minimum wage, so each new hire retained for five years could put more than $31,000 back into your pocket! As the minimum wage increases in the years ahead, so too will your credit. The dollars quoted are spread out on a sliding scale over the five years: 50 percent in the first year, 40 percent in the second, 30 percent in the third, 20 percent in the fourth and 10 percent in the last year.

For more detailed information on this tax credit, refer to FTB 3805Z.

How to Use the Calculator

Enter your information in the form below, then click Add. Repeat to enter more employees. To remove any entry from the table, click Delete next to that entry. To remove all of your entries from the table, click Clear. When finished, click Compute Tax Benefits to get your results.

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Enterprise Zone Savings Analysis Disclaimer:
This savings analysis is based upon information you have entered into the AVEZ Calculator as well as general tax and accounting principles applicable to Enterprise Zones in general. The AVEZ office cannot guarantee you will realize these savings since this is an estimate and actual savings can vary based upon a number of factors. You should consult with your accountant, tax advisor, attorney and/or the California Franchise Tax Board to verify potential savings your company can realize from the AVEZ.

	(example: 20)
	(example: 9.50)
	Maximum rate is $11.25. Minimum rate is $7.50. Please use only numbers and decimals - do not include dollar sign, commas or any alphabetical character.