With Oakland’s designation as an Enhanced Enterprise Community (EEC), businesses that hire from the EEC zone may be eligible for federal tax incentives including the Work Opportunity Tax Credit and the Welfare to Work Tax Credit. To learn more about how your business would benefit from the EEC, call 510.238.7794 or visit www.hud.gov/cr.

The California State Legislature developed the Enterprise Zone program to provide targeted areas with means to stimulate business and employment growth. In 1993, the City of Oakland received a 15-year designation for large portions of the city including Downtown and most of Oakland located below I-580. The Enterprise Zone program provides companies located within the target area with numerous tax incentives.

• Hiring Tax Credit
  Businesses can take 50% of qualified new employees’ wages as a tax credit, potentially worth over $30,000 per employee over five years. Businesses benefiting from this tax credit include Smart & Final and Kragen.
• Sales and Use Tax Credit
  Businesses located in the Enterprise Zone can receive a state tax credit in the amount of sales or use tax paid on qualified equipment or machinery purchases – including computer, data processing, and telecommunications equipment. Businesses may claim a credit equal to the sales or use tax paid or incurred on the first $20 million of qualified property.
• Employee Tax Credit
  Business can receive a tax credit of up to $8,500 over two years for hiring an eligible job seeker. Eligibility criteria include hiring local young adults. Businesses benefiting from this tax credit include Kmart, Walgreen’s, Sears, Long’s, Safeway, and Albertson’s.

"We just calculated our 2003 tax credits for enterprise zone and related programs.  For 2003, we get tax credits of $96,000.  $96,000 additional profit right to the bottom line -- all for being located in Oakland."

Michael Hannigan, Owner

Give Something Back Business Products

Oakland Enterprise Zone Map

For program details and additional information on the Enterprise Zone Tax Incentives, visit www.oaklandwib.org or call 510.238.3636.

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.edab.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 510.238.7403 or e-mail.