A qualified business may reduce its state income tax by $37,440 over a 5-year period per qualified employee. The credits may be carried over until they are exhausted. This section contains information about:
Who Qualifies
A qualified employee is an employee who:
- Performs at least 50% of the work within the boundaries of an Enterprise Zone
- Is a "regular" employee, not a temporary or contract worker
- Works part-time or full time; there is no maximum or minimum number of hours.
In addition, a qualified employee must meet one of the following criteria within the six-month period prior to the date of hire:
- A person receiving or eligible to receive subsidized employment, training or services funded by the federal Job Training Partnership Act (JTPA), or its successor, Workforce Investment Act (WIA) registered core or intensive services;
- A person eligible to be a voluntary or mandatory registrant under CalWORKs, formerly known as Greater Avenues for Independence (GAIN);
- A member of a targeted group as defined in the federal Work Opportunity Tax Credit (WOTC);
- An economically disadvantaged individual 14 years of age or older;
- A qualified dislocated worker;
- A disabled individual eligible for, enrolled in or who completed a state rehabilitation program;
- A service-connected disabled veteran;
- A veteran of the Vietnam era;
- A veteran who recently separated from military service;
- An ex-offender;
- A person eligible for or a recipient of:
*Federal Supplemental Security Income (SSI) benefits;
*Temporary Aid to Needy families (TANF), formerly known as AFDC;
*Food stamps;
*Refugee Cash Assistance
- A Native American; or
- A resident of a Targeted Employment Area (TEA).
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Vouchering Process
Before a business can utilize the Enterprise Zone Hiring Credit they must obtain a Hiring Credit Voucher for each eligible employee.
Begin by completing the EZ Voucher Application. Only one criterion must be met for the employee to be eligible. Once the application is complete, obtain Proof of eligibility for the criteria being used. For examples of what documents may be used to show proof of eligibility, refer to the Support Document Matrix.
Finally, once the application and proof of eligibility have been obtained, include a $90 per application fee by making a check payable to The City of Santa Ana.
Applications and fee can be mailed to:
City of Santa Ana
Attn: Enterprise Zone
20 Civic Center Plaza, M-25
Santa Ana, CA 92701
If you are a first time user of the Enterprise Zone (EZ), we recommend you schedule an appointment with one of our EZ staff to review the process. Even though the program is easy to use, we’ve found that a few minutes of personal instruction is time well spent. To schedule an appointment please call 714-647-6987.
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Hiring Credit Sample Calculation
Year One Credit
($12.00 x 2080 hours* = $24,9600) x 50% = $12,480
Assuming the employee stays with your company at the same rate of pay and works the same number of hours, the available hiring credit would be calculated as follows:
Year Two
$24,960 x 40% = $9,984
Year Three
$24,960 x 30% = $7,488
Year Four
$24,960 x 20% = $4,992
Year Five
$24,960 x 10% = $2,496
Total five-year credit $37,440
* 2080 hours is 40 hours a week for a full year.
** $12.00/hour is the current maximum hourly rat. If employee's wage is higher than $12.00/hour, credit is calculated at the maximum hourly rate. If under $12.00/hour, calculation is based on their current hourly rate.
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Finding Qualified Applicants
It is easy to find employees who meet the eligibility criteria if you company takes advantage of the Santa Ana W/O/R/K Center.
Job Order Process
INSTRUCTIONS TO COMPLETE THE JOB ORDER PROCESS
- Please make copies of the Job Order Form for future use
- Complete each section of the form, be specific with job duties and experience
- Fax completed form to (714) 565-2602
Upon receipt of your Job Order, a Santa Ana W/O/R/K Center Job Order Representative will process the information and broadcast it to over 100 job placement agencies. Those agencies include the state EDD, Job Training Providers, Vocational Schools and many more; which work mainly with Enterprise Zone eligible candidates. These agencies will then match their clientele with your job specifications and send out qualified candidates. A match cannot be guaranteed, but we have a high success rate in a variety of job classifications. After hiring an individual, please be sure to notify a Santa Ana W/O/R/K Center Job Order Representative at (714) 565-2660 to close out the Job Order.
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Screening Hours
As an added service, businesses are welcome to send their newly hired employees to be screened for EZ eligibility. An EZ Representative is available Wednesdays from 9 AM–12 PM at 1000 East Santa Ana Blvd., Suite 220. Please call (714) 565-2618 for more information.
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