• Hiring Tax Credits - Firms can earn $31,574 or more in State tax credits for each qualified employee hired.
• Sales and Use Tax Credit - Zone companies may receive a sales tax and use tax credit for manufacturing or processing machinery, data processing and communications equipment and motion picture manufacturing equipment central to production and post production, to be used in the Zone. Individuals can claim a credit on the first $1,000,000 of qualifying purchases, while corporations can claim credit on the first $20,000,000 per year.
• Business Expense Deduction - Up front expensing of certain depreciable property.
• Net Operating Loss Carryover - Up to 100% of the NOL may be carried forward for 15 years.
• Net Interest Deduction - Lenders to Zone business may receive a new interest deduction.
• Unused tax credits - Can be applied to future tax years.
• Preference Points - Enterprise Zone companies can earn preference points on state contracts.

• Duty Deferral - Customs duty and federal excise tax, if applicable, are paid only when merchandise is transferred from an FTZ to the customs territory of the United States, or transferred to Canada or Mexico.
• Duty Elimination - Goods may be imported into, and then exported from, a zone without the payment of duties and excise taxes, except to certain countries subject to trade agreements, such as Canada and Mexico (in which case, any applicable duties and excise taxes are levied). Goods may also be imported into, and destroyed in, a zone without the payment of duty and excise taxes.
• Inverted Tariff Relief - Inverted tariff relief occurs when imported parts are dutiable at higher rates than the finished product into which they are incorporated. For example, the duty rate on imported glass for automobiles is 5.5 percent if imported directly into the United States. However, if that auto glass is brought into a foreign trade zone and incorporated into an assembled automobile, the duty on the finished automobile, including the glass, is 2.5 percent.
• Tax Exemption - Merchandise imported into the United States and held in a zone for the purpose of storage, sale, exhibition, repackaging, assembly, distribution, sorting, grading, cleaning, mixing, display, manufacturing, or processing, as well as merchandise produced in the United States and held in a zone for exportation, either in its original form or altered by any of the above methods, is exempt from state and local ad valorem taxes.
• Storage - Merchandise may remain in a zone indefinitely, whether or not it is subject to duty. Other customs procedures, such as bonded warehouses and temporary import bonds, are subject to time limits.
• Exportation - Merchandise brought into the United States on an entry for warehousing, temporary importation under bond, or for transportation and exportation may be transferred to a foreign trade zone from customs territory to satisfy a legal requirement to export the merchandise. For instance, merchandise may be taken into a zone in order to satisfy an exportation requirement of the Tariff Act of 1930, or an exportation requirement of any other federal law insofar as the agency charged with its enforcement deems it advisable. Exportation may also fulfill requirements of certain state laws. Items admitted to a zone to satisfy exportation requirements must be admitted in zone-restricted status (meaning they are only for direct export, immediate export, or transportation and export).
• Security and Insurance - Customs security requirements and federal criminal sanctions deter theft. Deterrence may result in lower insurance costs and fewer incidents of loss for cargo imported into an FTZ.

• Use of Funds - Funds may be used to acquire equipment, make leasehold improvements, purchase recycled raw materials and inventory, and acquire owner-occupied real property (limited to $500,000).
• Rates, Terms, and Fees - Each eligible business or local government agency may borrow up to 75 percent of the cost of a project, for a maximum loan of $2 million. The term of the loan is not to exceed 10 years (15 years if secured by real estate) and amortization schedules are based on the useful life of the asset being financed.

- Interest rates are fixed for the term of the loan, and are set by the Board semiannually. The loan rate is below market interest rate. Call the Loan Program at (916) 341-6530 for more information.

- A nonrefundable application fee of $300.00 is due at time of application submittal. A loan origination fee of one-half percentage points will be charged on each loan. Points are due at the time of closing. The points are an eligible loan expense. - The Board reduces recycling business loan costs by helping borrowers pay for loan insurance through its contribution to the California Capital Access Program (CalCAP).