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Hiring Credit Vouchers

In order to claim a Hiring Tax Credit on your tax return, you will need to obtain a voucher from the Salinas Valley Enterprise Zone for each employee. The Enterprise Zone Manager serves as the vouchering agent for the Salinas Valley Enterprise Zone. The application fee is $65 per voucher.

How Do I Obtain a Voucher?

The Salinas Valley Enterprise Zone has been striving to make the application process for Hiring Credit Vouchers virtually painless. In total, the Hiring Credit Voucher Application process should normally take between 20 minutes to an hour of your time (much less with practice) and cost $65; a small price to pay considering that each employee could be worth up to $37,440 in tax credits!

Hiring Credits can be obtained by following these steps:

  1. Confirm that your business is within the Enterprise Zone (this may be done on the “Eligibility” tab, above). Estimated time: 5-10 minutes (one time).
  2. Confirm that your employee is a “Qualified Employee” as defined below. Estimated time: 5-10 minutes.
  3. Assemble the required documentation to demonstrate that the new employee is a “Qualified Employee” as detailed below. Estimated time: Can vary greatly depending on qualifying category, but usually between 5 and 30 minutes.
  4. Complete the Hiring Credit Voucher Application and submit the Application, the required documentation, and $65 application fee (make checks payable to the Salinas Valley Enterprise Zone) to the Enterprise Zone Manager (see Contacts). Estimated time: 5-10 minutes.

The Enterprise Zone Manager will review the application to verify that the employee meets the definition of a “Qualified Employee” and that all required documentation has been submitted. If so, the Voucher will be approved and returned to the applicant.

What is a “Qualified Employee”? What Documentation is Required?

The State of California has designated 18 classes of persons who meet the definition of a “Qualified Employee.” For each of these categories, specific forms of documentation need to be submitted in order to demonstrate that the employee meets the criteria specified. This documentation is in addition to the Hiring Credit Voucher Application.

A list of the 18 categories is provided below. If you believe your employee may qualify under one or more of these categories, please select the appropriate link to view a detailed description of that category as well as a list of the required documentation. Please note that the term “immediately preceding” means within the previous 90 days.

CalWORKS eligible

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a person eligible for services under the federal Job Training Partnership Act (29 U.S.C. Sec. 1501 et seq.), or its successor, who is receiving, or is eligible to receive, subsidized employment, training, or services funded by the federal Job Training Partnership Act, or its successor

Required Documentation

A document issued by the local CalWORKS administrator (Monterey County OneStop) stating that the employee was eligible for CalWORKS.

Workforce Investment Act (WIA) eligible

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a person eligible to be a voluntary or mandatory registrant under the Greater Avenues for Independence Act of 1985 (GAIN) provided for pursuant to Article 3.2 (commencing with Section 11320) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, or its successor.

Required Documentation

A document issued by the local WIA case manager or administrator (Monterey County OneStop) stating that the employee is enrolled in, or eligible for, WIA Intensive Services or Core B.

Economically Disadvantaged Individual

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was an economically disadvantaged individual 14 years of age or older.

“Economically disadvantaged individual” or “economically disadvantaged youth” means an individual who is at least 14 years of age, and resides in a household with a total family income not exceeding the very low income category adjusted for family size and location, as set forth in the latest edition of the Income Limits published periodically by the Department pursuant to CCR Title 25, Section 6932, or in the latest edition of the Section 8 Income Limits published periodically by the U.S. Department of Housing and Urban Development. For purposes of this subdivision, “family” means two or more persons related by blood, marriage, or decree of court, who are living in a single residence, and are included in one or more of the following categories: (i) A husband, wife, and dependent children; (ii) A parent or guardian and dependent children; (iii) A husband and wife.

Required Documentation

Provide both of the following Documents:

  • An official identification card or other document issued by the federal government or any state or local government that shows the employee’s age or date of birth, and indicates that the employee is at least 14 years of age.
  • A completed Income Verification Worksheet.

Laid Off Due to Plant Closure

Has been terminated or has received a notice of termination of employment as a result of any permanent closure or any substantial layoff at a plant, facility, or enterprise, including an individual who has not received written notification but whose employer has made a public announcement of the closure or layoff.

Required Documentation

Provide at least one Document from each List:

List A
  • Bankruptcy documents, if declared under Chapter 7, Title 11 U.S.C., Notice of Foreclosure or a similar document provided by a financial institution when such document clearly shows that a closure or mass layoff will occur as a result of its issuance.
  • Copy of a printed media article/announcement, including the name and date of the publication, describing the closure/mass layoff.
  • Statement from the employer or the union representative.
  • Statement from the employer’s bank official, attorney, supplier, or accountant.
  • WARN (Worker Adjustment and Retraining Notification Act) notice.
List B
  • Copy of a notice of termination or layoff or other company documentation of employee’s termination.
  • Employer or union representative letter identifying the employee’s termination date.
  • Separation or Termination Report, or equivalent, signed by the employee’s former employer.
  • Evidence that the employee is or was employed by the plant, facility, or enterprise identified in List A.
  • WARN notice.

Laid Off and Unlikely to Return to Industry

Has been terminated or laid off or who has received a notice of termination or layoff from employment, is eligible for or has exhausted entitlement to unemployment insurance benefits, and is unlikely to return to his or her previous industry or occupation.

Required Documentation

Provide at least one Document from each List:

List A
  • Copy of a termination notice or other company documentation of employee’s termination or layoff.
  • Employer or union representative letter identifying the employee’s termination date.
  • Photocopy of printed media article or announcement, including the name and date of the publication, describing the layoff, along with a copy of the employee’s last payroll check prior to hire by the Applicant.
  • Separation or Termination Report, or equivalent, signed by the employee’s former employer.
  • Document showing that the employee is eligible for or has exhausted entitlement to unemployment insurance benefits as specified in List B.
List B
  • Unemployment insurance records.
  • Statement by an Unemployment Insurance representative.
List C
  • Screen print of California Employment Development Department Labor Market Information Division screens that indicates limited opportunities for employment in the same or similar occupation such that the employee is unlikely to return to that occupation.
  • Doctor’s statement indicating employee’s inability to return to previous industry/occupation due to physical limitations.
  • Vocational rehabilitation counselor’s statement indicating the employee’s inability to return to previous industry/occupation due to physical limitations.
  • Other third-party documentation that demonstrates the unavailability of similar employment in the employee’s previous industry or profession.

Long-Term Unemployed

Is long-term unemployed and has limited opportunities for employment or reemployment in the same or a similar occupation in the area in which the individual resides, including an individual 55 years of age or older who may have substantial barriers to employment by reason of age.

Required Documentation

* Documentation provided for List A needs to be dated at least 15 weeks prior to commencement of employment. Provide at least one Document from each List:

List A *
  • Proof of receipt of unemployment benefits for at least 15 weeks prior to commencement of employment or proof that unemployment benefits were exhausted.
  • Unemployment insurance verification (benefits records).
  • Unemployment insurance award letter with claim history.
  • Workers Investment Act Displaced Worker Unit Verification.
  • Statement by an Unemployment Insurance representative.
  • Documentation that qualifies the employee as a dislocated worker under the “Laid Off and Unlikely to Return to Industry” category or as a dislocated worker under the “Laid Off Due to Plant Closure” category showing long-term unemployment for at least 15 weeks prior to commencement of employment.
List B
  • Screen print of California Employment Development Department Labor Market Information Division screens that indicates limited opportunities for employment or reemployment in the same or similar occupation.
  • Doctor’s statement indicating employee’s inability to return to previous industry/occupation due to physical limitations.
  • Vocational rehabilitation counselor’s statement indicating the employee’s inability to return to previous industry/occupation due to physical limitations.
  • Other third-party documentation that demonstrates the unavailability of similar employment in the employee’s previous industry or profession.

Previously Self-Employed

Was self-employed (including farmers and ranchers) and is unemployed as a result of general economic conditions in the community in which he or she resides or because of natural disasters.

Required Documentation

Provide a combination of the following:

  • Bankruptcy documents listing both the name of the business and the employee’s name.
  • A business license or permit listing the employee’s name.
  • Copy of articles of incorporation or documentation of dissolution for the business listing the employee as an owner.
  • Prior year’s income tax return.
  • Other documents sufficient to demonstrate that the employee previously was self-employed and was unemployed prior to the commencement of employment due to economic conditions in the community or due to natural disaster.

DOD Civilian Employee at Closing Military Installation

Was a civilian employee of the Department of Defense employed at a military installation being closed or realigned under the Defense Base Closure and Realignment Act of 1990.

Required Documentation

Provide at least one Document from each List:

List A
  • A copy of the employee’s termination notice.
List B
  • A copy of a media article or announcement describing the layoff or closure.
  • An employer or union representative letter describing the layoff or closure.

Pre-1990 Active Member of Armed Forces or National Guard

Was an active member of the armed forces or National Guard as of September 30, 1990, and was either involuntarily separated or separated pursuant to a special benefits program.

Required Documentation

Provide one of the following Documents:

  • Report of separation or discharge from the armed services or the National Guard.
  • Veterans Administration documentation.
  • Verification by State Veterans Agency.

Seasonal or Migrant Worker

Is a seasonal or migrant worker who experiences chronic seasonal unemployment and underemployment in the agriculture industry, aggravated by continual advancements in technology and mechanization.

Required Documentation

Provide one of the following Documents:

  • Documentation of employee’s migrant employment in a seasonal occupation.
  • Employer or union representative letter describing seasonal layoff in employee’s seasonal occupation.
  • Copies of termination notices identifying employer and employee.
  • Copies of employee’s pay stubs identifying seasonal employer.

Laid Off due to Clean Air Act Compliance

Has been terminated or laid off, or has received a notice of termination or layoff, as a consequence of compliance with the Clean Air Act.

Required Documentation

Provide at least one Document from each List:

List A
  • A copy of the employee’s termination notice.
List B
  • A photocopy of a media article or announcement describing the reason for the layoff
  • An employer or union representative letter stating that compliance with the Clean Air Act was the reason for the layoff.

Disabled Individual

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a disabled individual who is eligible for or enrolled in, or has completed a state rehabilitation plan.

Required Documentation

Provide at least one of the following Documents:

  • Physician’s statement.
  • Rehabilitation plan.
  • Vocational rehabilitation letter.
  • Verification by state or federal rehabilitation counselor.
  • Letter from a state drug or alcohol rehabilitation agency.
  • Medical records.
  • Social Security Administration disability records.
  • Social Service records/referral.

Disabled Veteran

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a service-connected disabled veteran.

Required Documentation

Provide one of the following Documents:

  • DD-214 Defense Department Report of Separation.
  • Veterans Administration documentation.
  • Verification by State Veterans Agency.

Vietnam or Recently-Separated Veteran

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a veteran of the Vietnam era, or veteran who is recently separated from military service.

”Vietnam Era Veteran” means a veteran any part of whose active military service occurred between August 5, 1964, and May 7, 1975.

”Recently Separated” means within 48 months (4 years) preceding commencement of employment.

Required Documentation

Provide one of the following Documents:

  • Report of separation or discharge from the armed services or the National Guard.
  • Veterans Administration documentation.
  • Verification by State Veterans Agency.

Person Eligible for Public Assistance

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a person eligible for or a recipient of any of the following:

  • Federal Supplemental Security Income benefits.
  • Aid to Families with Dependent Children.
  • Food stamps.
  • State and local general assistance.
Required Documentation

Provide one of the following Documents:

  • Public assistance award letter.
  • Benefit printout.
  • Current food stamp identification card or award letter.
  • Social Security Insurance award letter or check stub.
  • Refugee Cash Assistance.
  • Verification by Department of Social Services.
  • Written statement from county welfare office or telephone verification by zone manager.
  • Public assistance records/printout.

Native American

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a member of a federally recognized Indian tribe, band, or other group of Native American descent.

Required Documentation

Provide one of the following Documents:

  • Native American tribal record document.
  • Certified Degree of Indian Blood (CDIB) card, issued by the Bureau of Indian Affairs.
  • Documentation that the employee is a Native Samoan, Native Hawaiian, or a member of another group of Native American descent.

Resident of Targeted Employment Area

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a resident of a targeted employment area, as defined in Section 7072 of the Government Code.

Required Documentation

Provide at least one document from each list:

List A
  • Federal Form W-4 completed at the time of hire
  • Form I-9, U.S. Department of Justice, Immigration and Naturalization Service.
  • Driver’s license or State Identification Card.
  • Landlord statement.
  • Lease or rental agreement.
  • Utility bill.
List B
  • A copy of a page from the TEA address list indicating the employee’s address.
  • Other documentation sufficient to demonstrate that the employee’s address is located within a TEA.

Member of a WOTC “Targeted Group”

Immediately preceding the qualified employee’s commencement of employment with the taxpayer, was a member of a targeted group, as defined in Section 51(d) of the Internal Revenue Code, or its successor.

Required Documentation
  • A document issued by the Work Opportunity Tax Credit (WOTC) or successor program’s “designated local agency” (as defined in Internal Revenue Code Section 51(d)(15)) stating that the employee was a member of a targeted group, as defined in Internal Revenue Code Section 51(d), or its successor.

TEA Street Listings

The Salinas Valley Enterprise Zone has an approved TEA. You may check to see if an address is located within the Targeted Employment Area by using the list below. The list is provided in Excel 2003 format and in pdf format.

For each list, search for the address by using the program's "Find" function (Ctrl + F). Use the Address number and street name to search; do NOT use directions (N, S, etc.), suffixes (St, Rd, etc.), or apartment or suite numbers. For example, if you are searching for 528 East Market Street, Apartment 106, type "528 Market" into the Find function and search until you find the correct entry.

TEA Maps

If you are unable to find the address on the list, it is still possible that the address may be located within the TEA. Please review the maps below to see if the address is located within the TEA.

If you have trouble locating the property, you may use a web-based property locater (such as Google Maps) to find the property’s location. If you cannot determine the property’s location, or if the location is too close to call, please contact the Enterprise Zone Manager for assistance.

In addition to the Salinas Valley TEA, Hiring Credit Vouchers may also be issued for businesses located within the Salinas Valley Enterprise Zone that hire employees residing in a TEA associated with another Enterprise Zone. TEA information for some nearby Enterprise Zones are listed below:

Forms

Links

Department of Housing and Community Development Website