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San
Francisco has a large Enterprise Zone, and most businesses are
located in the zone and may qualify for state or local tax credits.
The Enterprise Zone includes the Van Ness corridor east through
the Financial District, Fisherman's Wharf, Union Square, Chinatown,
North Beach, Hayes Valley, Lower Haight, SoMa, Third St. Corridor,
Inner Mission and Bayview/Hunters Point neighborhoods.
SF Works coordinates with our tax credit service partner, Corporate Tax Incentives (CTI) to help local business access this valuable program. These credits support our local businesses and help create and retain jobs.
Businesses
with all types of corporate structures – including LLCs,
LLPs, S-Corps and C-Corps, can benefit from hiring tax credits.
All types of employees can qualify a company for hiring tax credits, as
there is no restriction on the type of job someone performs.
Typically
about 20% of your employees will qualify your firm for these
credits. The state credits are retroactive. Depending on your
location you can go back three or five years to get back your tax payments. These credits
also carry forward indefinitely, so if you identify more credits than you can use, they can be used in the future.
What People Say
"SF
Works and CTI supported us through the process of identifying
and claiming more than $35,000 in tax credits annually. They
met one-on-one with our employees in brief sessions, accommodating
our staff shifts and schedules. The HR paperwork they needed
was easy to provide. The entire experience was straightforward
and made my life easy."
Virginia Donohue, Owner, Pet Camp
"We have found that 90 percent of eligible San Francisco businesses
are not taking advantage of tax credits worth thousands or even
hundreds of thousands of dollars, even in this economic downturn.
Many companies assume, incorrectly, that they don't qualify
or that the application process is too complicated- leaving
significant dollars on the table."
Steven B. Falk, President & CEO, San Francisco Chamber of
Commerce
"We worked together with SF Works and CTI and had them both present when we conducted employee interviews. They identified up to $1,500 credits per employee and at the same time identified potential Enterprise Tax Credits for the restaurant. This combined approach helped us to identify up to four times the credits we would have realized had we not conduced the interviews."
Laurie Thomas, Owner, Rose Pistola
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Fast
Facts
What
Hiring Tax Credits Are Available? |
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These
are the four types of credits available to
San Francisco businesses, with their maximum
values:
California Enterprise
Zone Hiring Tax Credit: Up to $37, 440 per qualified hire paid back over five years.
San Francisco Enterprise Zone Payroll Tax Credit: 100% of payroll tax owed
on qualifying employee's wages during the
first two years of employment, with a declining percentage rate of credit for over an additional eight years.
Federal Work Opportunity
Tax Credit (WOTC): $9,000 per qualifying employee
Federal Renewal
Community: $1,500 per qualifying employee
per year
Oakland, Richmond
and San Jose also have enterprise zones. There
are 42 zones in total for California. Most
states have similar programs. If your business
has locations in other areas we can also identify
those credits. |
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How
Does My Business Qualify? |
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Each credit has its
own qualifications, and businesses qualify
based on a combination of factors including
where your business is located and characteristics
of your employees. |
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How
Do I Apply for Hiring Tax Credits? |
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If you would like assistance
with completing this process, SF Works can
explain how to hire a tax credit firm to perform
all of the back-office paperwork, screen
your employees, and submit and process
the government vouchers, making the whole
process easy for you.
SF Work's partner CTI specializes
in state and federal tax incentives available
to businesses. The tax benefits that your
business can take advantage of can be substantial,
as these incentives are often tax credits
that reduce your business' income or
franchise tax dollar for dollar. To date CTI
has generated millions of dollars in federal
and state income tax savings for hundreds
of companies through various tax incentive
programs.
The benefits of our services
include:
Reduced income tax
liability in current and future income years.
Refunds of prior
taxes paid with interest earned at an annual
compounded rate of between 7 and 9%.
Reduced estimated
tax payments.
Minimal inconvenience
to your business, we schedule our services
most convenient to the business' schedule
and personally retrieve all information needed
to generate the tax credits. |
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Why
SF Works? |
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We
can typically identify greater tax credits
at a lower service cost to you, and provide
valuable assistance to your employees. SF
Works is a local nonprofit charitable organization
housed in the San Francisco Chamber of Commerce. |
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How
Do I Get Started? |
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For more information
about applying for hiring tax credits, and to
learn more about our services, contact Chris
Evans, Business Outreach Specialist, at 415.217.5193
or cevans@sfworks.org. |
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Read
More |
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Tips
for Hiring a Tax Credit Firm |
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Short
Primer on San Francisco Hiring Tax Credit Opportunities |
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Read
about Community Benefits for Your Employees |
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