Hiring-Related Incentives and Tax Credits California Enterprise Zone Hiring Credits Businesses located within an Enterprise Zone are eligible to receive credits and other financial incentives, one of the most beneficial is the Employer Hiring Credit. Qualified Zone employers may claim tax credit up to 50% of qualified wages paid to eligible employees who, at the time of hire, satisfy one of thirteen criteria. Over $12,000 of credit may be available in the first year of employment, with a potential total credit of over $37,000 available over the first five years of employment. Other Enterprise Zone Incentives are; Sales and Use Tax Credit, Net Operating Loss Carryover, Business Expense Deductions, and Net Interest Deductions for Lenders. Federal Hiring Tax Credits The Empowerment Zone Employment Credit was created to promote and sustain economic and community development in targeted areas. Employers conducting business in an Empowerment Zone may be eligible for up to $3,000 per year in Federal Tax Credits for each qualified employee. Employers can receive a credit every year the qualified employee lives and works in the Zone. Work Opportunity Tax Credit ("WOTC") For employees who work 400 hours or more for an employer in the employer's tax year, the WOTC credit can be as much as 40% of the "qualified first year wages" paid to such employees during the tax year.  This may result in a potential Federal Tax Credit of between $2,400 and $9,000 (or more under certain circumstances) per qualified employee. Credit is available to all companies regardless of business location.    Return to Services page