EZ tax credit is available to the people running non retail business in enterprise zone as well as to those insurance businesses which are situated in the enterprise zone. Tax credit shall be allowed up to one dollar for every income tax paid.
The tax credit shall be allowed after the end of the tax year or when filing the income tax return which ever is earlier. The tax credit shall only be allowed if business is within the premises of enterprise zone mentioned in the enterprise zone program for tax credit. Therefore before claiming a tax credit on income the business had to confirm that he had his business in that locality. These tax credit are allowed because a $3000 tax credit provided for each net income after three year will able to produce quality in work of the businesses as well as new jobs.
Exceptions
Businesses which are sited in the enterprise zone and also carry out retail sales but less than 10% and bring new jobs can also qualify for tax credits. There are three retail sales businesses which no matter up to which percentage runs retail business will not cause the ineligibility for tax credit.
Such businesses are: when food as well as beverages are consumed at the premises of the business by the employees or are served to the guests, products for the promotion of the company trade marks or logos, the products of the company which are sold to the employees of the company.
Job position
These tax credit are allowed because a $3000 tax credit provided for each net income after three year will able to produce quality in work of the businesses as well as new jobs.
Position of the jobs may be: permanently full time, up to 90 days in a tax year and must be paid the the minimum page held by county.
Facilities with job
The business must also had to provide fifty percent health insurance, however if a business reclaims zone credit, then he cannot claim EZ tax credit.
Tax credit in first year is up to $500, in second year up to $1000, in third year up to $1500.
Any amount of tax credit which exceeds tax liability can be carried forward up to 5 years only if the business had remained in enterprise zone.
If tax credit is claimed on 35% new employees, credit will only be allowed if these employees are living in enterprise zone.
