Enterprise Zone benefits for Lodi business

The vast majority of Lodi businesses are within the San Joaquin County Enterprise Zone, one of 42 State-designated zones created to encourage business expansion and create jobs in regions that need them most.

This translates to savings on California taxes and incentives that can substantially reduce operating costs for businesses located with an enterprise zone.

In Lodi, expanding enterprise zone businesses may qualify for a discount on Lodi Electric Utility rates, which for high energy users is far lower than the competing investor-owned utility; and obtain the rapid responses from high-level City officials that are needed to make business decisions.

In Lodi, the enterprise zone is generally east of the Union Pacific Railroad tracks, as well as the major commercial corridors of Kettleman Lane, downtown Lodi, Lodi Avenue as far west as Ham Lane, and portions of Lockeford Street and Turner Road east of California Street.

Some of the State tax credits include:

• Hiring tax credit of up to $37,400, sometimes more, per new employee hired over a five-year period;
• Sales and Use tax credit on machniery purchases for manufacturing;
• Business expense deduction of up to $20,000 per year on tangible personal property;
• Net operating loss carryover of up to 100 percent carryover to future years;
• Net interest deduction for lenders may result in a 3- to 4-percent increase in return on investment.

San Joaquin County WorkNet can screen prospective employees to determine if they qualify the businesses for the hiring tax credit. In Lodi, simply residing in a particular Census tract (Targeted Employment Area) makes employees eligible for a tax credit. Call the Enterprise Zone manager at (209) 468-3615 for more information.

A detailed map of the Zone is available for download here. (PDF file, 9 MB. Magnify for parcel-by-parcel detail).

Click here for a map of the Targeted Employment Area in Lodi (shaded tracts).

For additional information, visit www.sjcez.org, or email San Joaquin County Enterprise Zone manager or the City of Lodi.