Eligibility     
If you operate a business in an Enterprise Zone (EZ), you are eligible to take advantage of the State’s tax incentives.  To claim the tax credits, file the appropriate forms at tax time – pre-qualifying is not required.  The Hiring Tax Credit is the only credit that requires a signed voucher by the EZ Vouchering Agent.

If you hire new employees or you are planning an expansion, this tax credit can save you thousands of dollars over the course of five years.  By hiring “qualified” employees, you can claim up to 50% of your employee’s wages in the first year of employment.  The credit percentage decreases by 10% annually, phasing out after five years.

Provisions
-“Qualified employees” must perform at least 50% of their work within the EZ boundaries, and meet specified criteria at the time of hire, such as one of the following:

-Receive subsidized employment, training or services under WIA; or

-Be registered under CalWORKS; or

-Be certified under the Work Opportunity Tax Credit (WOTC) by the Employment Development Department’s guidelines (PDF); or

-Be a resident of a Targeted Employment Area.

For a complete list of eligibility criteria, see “Which Employees Qualify?” on pages 16-17 of SDREZ Vouchering Handbook (PDF):

Vouchering Process

Vouchering is the process of screening and documenting new hires to determine if the employee qualifies a business for the Hiring Tax Credit.

To determine if an employee meets one of the required eligibility criteria for the hiring tax credit, an EZ Hiring Tax Credit Application must be completed for each employee. Before submitting an application to the SDREZ Vouchering Agent, please review the SDREZ Vouchering Handbook. A $100 application fee is required for each application submitted and is nonrefundable.

• EZ Hiring Tax Credit Voucher Application (DOC)
• EZ Hiring Tax Credit Voucher Application (PDF)
• Income Verification Worksheet (DOC)
• Income Verification Worksheet (PDF)

Other advantages include:

-No-cost job referral service used to find qualified employees whose wages can be claimed as tax credits. For more information, please contact one of the local EZ Vouchering Agents:

Tina Hines at (619) 236-6305 or Thines@sandiego.gov

Tere Avina at (619) 236-6302 or Tavina@sandiego.gov