Sales & Use Tax Credit Calculator - City of Palmdale, CA Official Web Site

Sales & Use Tax Credit

If you buy manufacturing or processing machinery, data processing or communications equipment or motion picture manufacturing equipment for use in a business inside the Zone, your company may be able to reduce your state income tax or franchise tax liability by an equivalent amount thanks to a sales tax credit available exclusively to Zone businesses. In any year, individuals, estates, trusts, partnerships and LLCs taxed as partnerships may claim a credit on the first $1,000,000 of qualified purchases. Corporations may claim it on the first $20,000,000. At 8.25 percent that's a $1,650,000 credit - nothing to sneeze at!

What's more this credit may be claimed in addition to the 6 percent Manufacturers' Investment Credit (MIC) you may also be qualified to receive. Click here to use the MIC calculator.

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 equipment. 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.



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