California's enterprise zone program is an innovative partnership comprised of state government, local government and private businesses. The State of California re-designated Oakland on January 31, 2008, for an additional 15 years. Oakland businesses in the Zone - from large manufacturing companies to small neighborhood restaurants - can reduce their state taxes by taking advantage of Enterprise Zone benefits.Tax credits and benefits available to companies locating in enterprise zones include:

• Tax credits for sales or use taxes paid on up to $20 million of qualified machinery purchased per year;
• A hiring credit of $37,440 or more for each qualified employee hired;
• A 15-year carryover of up to 100 percent of net operating losses
• Expensing up to $40,000 of certain depreciable property;
• Lender income deductions for loans made to zone businesses; and
• Preference points on state contracts.
• Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment

For more information and forms required for claiming the Enterprise Zone Hiring Tax Credit visit our on line EZ Tax Credit Vouchering System at www.EZOakland.com or call Susana Villarreal; Enterprise Zone Coordinator at 510-238-7794; svillarreal@oaklandnet.com.

The program targets small and medium-sized manufacturing companies that are normally shut out of national credit markets and provides low-cost, long-term financing for real estate and equipment projects that retain or create employment in Oakland.

No public entity assumes any of the risk of the financing. A highly-rated bank relies on a Letter of Credit with the business for adequate collateral and repayment ability.

Oakland’s Industrial Development Bond Program is administered by the Economic Development Alliance for Business. To learn more about the bond program including the eligibility criteria and application process, visit www.eastbayeda.org or call 510.272.3885.

The State of California has created a tax incentive designed to encourage manufacturers to stay and grow in the Golden State. Known as the Manufacturers’ Investment Credit (MIC), this legislation allows California manufacturers to claim a six percent investment tax credit or a five percent sales/use tax exemption (for new businesses) on qualified property that is purchased, acquired, or leased for use in California. These credits can greatly reduce the amount of State taxes a company pays.

The principal categories of qualifying activities include:

• Fabricating
• Manufacturing
• Processing
• Refining
• Research and Development

For details on the MIC, visit www.ftb.ca.gov or call 1.800.852.5711

The City of Oakland's Retail and Entertainment Catalyst Tenant Improvement Program (TIP) provides incentives to attract key entertainment and retail businesses to targeted locations in the downtown area. While downtown retail market has improved in recent years, in many cases the available spaces, buildings, or properties require tenant improvements to meet the needs of existing retailers.

Under the TIP, additional incentives are available to cover expenses such as asbestos abatement, compliance with the Americans with Disability Act (ADA), ventilation, off-site improvements, and other tenant improvements including demolition, mechanical, plumbing, electrical and interior historic restoration. The Tenant Improvement Program can be used with the existing Downtown Façade Improvement Program. Targeted areas include Uptown, the Downtown Historic area, the Latham Square area, Old Oakland, Chinatown, and Lower Broadway.

For further information, call Redevelopment at 510.238.3699 or e-mail.