The Sequoia Valley Enterprise Zone - Lindsay
Commonly Asked Questions
Business Testimonials
The state-designated Sequoia Valley Enterprise Zone (SVEZ) provides special tax incentives to qualified businesses locating, expanding, or continuing to do business in the city of Lindsay. Incentives include:
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Hiring Tax credit for hiring qualified employees (up to $37,000 per qualified employee)
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Sales and Use tax credit for purchasing qualified equipment
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Accelerated Expense Deductions
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Net Interest Deduction for lenders
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21 day permit fast tracking
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5 year – no interest development fee deferral
The Enterprise Zone program was designed to encourage business investment and employment growth in economically distressed areas of California. Your business may qualify for these incentives if it is located within the SVEZ boundary. The zone boundary consists of industrial and commercial areas located within the eight incorporated cities of Tulare County, including the city of Lindsay, as well as multiple unincorporated areas. A map of zone boundaries and street ranges can be found at www.sequoiavalley.com. The zone effective date is still to be announced and incentives will be re available through 2026.
For additional information, contact:
Becky Murphy – 559-562-7117 - City of Lindsay
or
Lori Dunagan – 559-688-3388 x103, SVEZ Manager
or
SVEZ website - coming soon!
Click on Map to download.
Commonly Asked Questions About the Lindsay Enterprise Zone
Do I have to be a new Lindsay Business to take advantage of the Zone benefits?
No. Any existing or new business can take advantage of Zone benefits as long as the
business is located within the city limits.
How long does the enterprise zone program last?
Until 2026.
Is the hiring tax credit/vouchering process complicated?
Absolutely not! The state voucher is a one-page form that can be completed in minutes.
What is a TEA?
Lindsay has been designated a targeted employment area(TEA) so approximately 95% of the
residents automatically qualify for a hiring tax credit. If you hire a Lindsay resident, you
will most likely qualify for this tremendous state tax credit.
If my business cannot use all the credits I earn this year, can I use the remaining credits
against next year's taxable income?
Yes. You may carry over the sales and use tax credits indefinitely, and the hiring
credits for 15 years, contingent upon your business remaining within the Zone boundaries.
Can I receive a voucher for a part-time or seasonal employee?
Yes.
What items qualify for the sales and use tax credit?
Items which qualify include machinery (and replacement parts) used in manufacture,
assembly or production of goods, which is purchased and delivered to the Zone location.
It also includes machinery that is used to process and cook, as well as air and water
pollution-control devices associated with a manufacturing operation.
What is the advantage of the net operating loss carryover incentive?
Being in the Lindsay Enterprise Zone allows an employer to carry forth 100% of net
operating loss to future years rather than the 50% allowed for employers outside of the
Zone. This is of particular advantage to new start-up companies.
Are there other benefits to the Lindsay Enterprise Zone?
Yes! These include but are not limited to a business loan program, permit streamlining,
fee deferrals and rebates, purchasing power from other Lindsay businesses and training
workshops.
If I think I have a new employee
that qualifies for the hiring tax credit or have a general question about
the Enterprise Zone, whom do I contact?
Adriana Andrade, Community Development Department at (559) 562-7117
Enterprise Zone coordinator
for the City of Lindsay is, Scot B. Townsend.
What are Lindsay businesses saying about the Enterprise Zone?
Dan Smith, Chief Financial Officer, SmithCare, Inc. and Lindsay Gardens
"The City
of Lindsay Enterprise Zone has virtually eliminated our state income taxes for the
foreseeable future. This allows us to invest more in the success of our business and,
most importantly, provides additional resources to provide an even higher level of care
in our facility. We are excited about the opportunities provided by the Enterprise Zone
and the short and long-term benefits it will provide to the residents of Lindsay."
Art Serna, Owner, Art's Custom Cabinets
"The Enterprise Zone's benefits have
allowed us to hire more people, allowing us to expand our operations. The zone has given
us added flexibility with our company's resources."
Greg Smith, President/General Manager, Lulu Packing
"Although we have been a
long-time Lindsay employer, the Enterprise Zone has greatly increased our operational
efficiency, creating new and exciting opportunities for our company by making it possible
to expand our business."
Terry Henson, Manager, Burger King
"It's a great opportunity not only for
local businesses but for the community to bond together in realizing its economic goals."
Bob Babcock, President, National Diversified Sales
"The Enterprise Zone is the
single most distinguishing feature that separates Lindsay from other manufacturing sites
in the valley. By using the enterprise zone intelligently, NDS has effectively 'zeroed out'
its State tax liability. For California manufacturers, this is a tremendous competitive
advantage."
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