Zone Benefits for Residents
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- What is the Salinas Valley Enterprise Zone?
The Salinas Valley Enterprise Zone was originally designated on January 30, 2009 to include the Cities of Salinas, Gonzales, Soledad, Greenfield, and King City, and was expanded on July 11, 2011 to include the Castroville Industrial Park. It provides a number of credits for businesses, including a Hiring Credit for qualified employees hired on or after January 30, 2009. Businesses located within the Enterprise Zone that hire a “qualified employee” may receive tax credits equal to up to half of the employee’s salary for the first year.
- Can I claim any tax credits on my tax return?
Employees in the Enterprise Zone may qualify for a small tax credit if they work in the Enterprise Zone. In order to qualify, the employee must perform at least 50% of their work within the Enterprise Zone, must spend at least 90% of their time on activities directly related to operation of the business within the Enterprise Zone, and must have an adjusted gross income of less than $16,334 ($32,667 if filing jointly and both partners worked in the Enterprise Zone).
Federal, State, and local government employees are not eligible to receive the Credit. To claim the credit, complete the following form and submit it with your California tax return.
- Are there any other benefits?
If you can demonstrate to an employer that you are a “qualified employee,” thus entitling them to tax credits equivalent to up to half your salary, you may provide them with an incentive to hire you over other applicants that are not “qualified employees.” This gives you a distinct advantage over other applicants when looking for work.
- Why do you keep putting the term “qualified employee” in quotation marks? What does that mean?
When talking about Enterprise Zone Hiring Credits, being a “qualified employee” doesn’t just mean being qualified for the position. A “qualified employee” meets one of eighteen criteria set forth by the State of California.
- How do I know if I’m a “qualified employee”?
The first action we recommend is to visit the Monterey County OneStop Center. In addition to providing you with valuable resources in your job search, Monterey County OneStop will determine whether you are eligible for CalWORKS or WIA Intensive Services or Core B. If so, you are considered a “qualified employee,” and you will be provided with an Enterprise Zone “eligibility card” as shown below:
Show this card to potential employers as you look for work. If they elect to hire you, they may contact OneStop at the number listed on the card to secure the necessary documentation.
If you are not eligible for CalWORKS or WIA Intensive Services or Core B, or if you wish to assemble the information on your own, you may determine whether you qualify and assemble the documentation yourself. Review the attached list and see if you meet any of the criteria specified. If so, assemble the documentation listed as required for that qualification category and let potential employers know that you would qualify them for Enterprise Zone Tax Credits. You may contact the Enterprise Zone Manager if you have any questions regarding these requirements.
Acceptable Documentation to Verify Hiring Credit Eligibility
- Is there anything else I should know?
In order for you or your employer to claim a credit, the business needs to be located within the Enterprise Zone. Generally, businesses located in the Cities of Salinas, Gonzales, Soledad, Greenfield, and King City, as well as the unincorporated area between those Cities along the US 101 and Highway 183 Corridor (including Chualar and the Castroville Industrial Park) are located in the Enterprise Zone, although there are a few exceptions. Any potential employers should check the Business Portal of this website to confirm they are located within the Enterprise Zone before they make any decisions based upon Enterprise Zone benefits.
Check our Frequently Asked Questions (FAQ) page if you have any additional questions. You may also sign up for our email distribution list for Enterprise Zone news.