East Bay Access to Capital

Tax Credit

Local, regional and state public agencies provide several tax credit programs related to hiring, sales and use taxes, job creation and research and development. 

Work Opportunity Tax Credit

The program allows employers to reduce tax liabilities for businesses by hiring veterans, vocational rehabilitation referrals, Social Security Income (SSI) recipients and other targeted groups. Hiring a welfare recipient may reduce tax liabilities for an employer by $8,500 per new hire. 

California State Board of Equalization Programs

Sales and Use Tax Partial Exemption
Certain industries are exempt from sales and use taxes. These include Liquefied Petroleum Gas (LPG), Farm Equipment, Machinery and Parts, Diesel Fuel, Racehorse Breeding Stock, Teleprouction and Postproduction Services and Timber Harvesting Equipment, Machinery and Parts. 

Manufacturing and Research & Development Equipment Exemption
Manufacturers and certain research and developers are eligible to apply for a partial exemption of sales and use tax on equipment purchases and leases. Guide to filing sales tax exemption

California State Franchise Tax Board Programs

New Employment Hiring Tax Credit
Program is available for each taxable year to a qualified business that hires a full time employee in a designated census tract. 

New Jobs Tax Credit
Tax credit of up to $3,000 is available for each full time employee hired by small businesses with 20 or less employees. 

Research and Development Tax Credit
The program reduces income or franchise tax for businesses that paid or incurred qualified research expenses while conducting research in California. 

California Employment Development Department (EDD)

Disabled Access Credit Provides a credit of $5,000 to assist small businesses cover the cost of making their facilities accessible to disabled individuals.

Architectural and Transportation Tax Deduction
Annual tax deduction of up to $15,000 for businesses who incurred cost to remove architectural and transportation barriers for disabled and elderly individuals.

Empowerment Zone/Renewal Community Tax Incentives
Tax based incentives for up to $3,000 per qualified employee to retain or hire individuals that both live and work in an Empowerment Zone or Renewal Commnity. 

Work Opportunity Tax Credit (WOTC)
Program provided for employers who hire job seekers from targeted groups. Employers are provided a federal income tax credit. A new hire can reduce an employer's federal tax liability by up to $9,600.