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The City of Palmdale received designation from the State of California for the Antelope Valley Enterprise Zone in February 1997. Whether your company is a small, family-run business or a large corporation, you may take advantage of a number of tax incentives through the Antelope Valley Enterprise Zone. Any company located within the boundaries of the 61-square-mile Enterprise Zone may reduce its state business income tax through five tax incentives.

Hiring Tax Credit:

Firms may earn up to $31,574 in state tax credits for each qualified employee hired over a five-year period. For more information, contact Shirley Kemp at the Employment Development Department: 661/726-4128. Use the online Hiring Tax Credit Calculator to estimate your benefits!

Sales & Use Tax Credit:

Corporations may earn sales tax credits on purchases of up to $20 million per year on qualified machinery or machinery parts used in the Zone. Partnerships and individuals may annually claim a credit on the first $1 million of qualifying purchases. Use the online Sales & Use Tax Credit Calculator to estimate your benefits!

Business Expense Deduction:

You may deduct up to $20,000 of the cost of qualifying business equipment, furniture and fixtures or other depreciable personal property. Use the online Business Expense Deduction Calculator to estimate your benefits!

Net Operating Loss Carryover:

Up to 100 percent of Net Operating Loss may be carried forward for 15 years. For more information on this tax incentive, refer to FTB 3805Z.

Interest Deduction for Lenders:

Lenders to Zone businesses may deduct direct expenses incurred in making the loan from the interest income. This may mean more favorable rates or terms for the borrower. For more information on this tax deduction, refer to FTB 3805Z.

For more information, contact City's economic development department at 661/267-5125.

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