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Tax Credits/Incentives

 

NEW BUSINESS TAX EXEMPTION

New businesses on Broadway will be exempt from gross receipt taxes, applicable minimum tax or any additional business tax for the first three years of operation. A new business is one that has not previously paid business tax receipts in the city of Los Angeles. Businesses currently operating in the city that should have filed for a business tax registration certificate in prior years are not qualified.

 

USE TAX REBATE

Offers rebate of 20% on the additional Use Tax collected by California State Board of Equalization for the City of Los Angeles. Businesses that pay Use Tax to lessors or out-of-state vendors are eligible. Equivalent to about 67.5% of the 1% of the Use Tax allocated to the City of Los Angeles that you pay to your vendor. 
Contact: City of L.A. Office of Finance, Ed Cabrera, 213-978-1516, ed.cabrera@lacity.org

 

NEW MARKET TAX CREDITS

Properties on Broadway may be eligible for New Market Tax Credits and/or Historic Tax Credits.  The Los Angeles Development Fund (LADF) is a California non-profit and certified Community Development Entity (CDE) established by the City of Los Angeles to administer its New Markets Tax Credits (NMTC) program. LADF is committed to using its NMTC allocation to stimulate economic development in low-income communities throughout the City of Los Angeles. The LADF will target its allocation toward projects that generate maximum economic and community benefits for the residents living in the City’s economically distressed communities, promoting job and wealth creation and advancing principles of sustainable building design and responsible land use. 

The NMTC program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated CDEs. As a certified CDE, the LADF acts as the bridge between the capital markets and low-income communities by taking the investment capital that it receives and lending it to qualified projects.
 
Contact: Sandy Rahimi,: (213) 808-8800, srahimi@crala.org

*New Market Tax Credits may be blended with Historic Tax Credits (see section on Historic) for a powerful incentive towards rehabilitation of historic properties. 

 

WORK OPPORTUNITY TAX CREDIT

Federal tax credit that allows for hiring credits of up to $2,400/year for each eligible hire by businesses which hire individuals between the ages of 18-39 who qualify as a member of target group with particularly high unemployment rates or special employment needs and / or who reside in either the Federal Empowerment Zone (EZ) or the Federal Renewal Community (RC) area. Tax credit varies by group, credit percentage depends on individual’s hours of work.












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