Advice on state location tax credits

John McMillan

Friday, May 20th, 2011

David McMillan of McMillan and Associates talks about state location tax credits and how your business can benefit from working on/in state created zones to receive these tax benefits.

Hi, my name is David McMillan and I’m with McMillan and Associates and today I want to talk to you about state location tax credits. In order to stimulate economic development, states create certain zones for economic development for the businesses that live in those zones and operate in those zones. These can be zones for underdeveloped counties. They could be opportunity zones. They could be enterprise zones, and they can also be based around military operations. If your business is located in one of these state location zones, you’re eligible for different tax credits incentives for a number of business activities including hiring certain types of individuals that work in those zones, also creating new jobs, and making capital investments inside those area. For example, in California if your business is located in a state enterprise zone, creating new jobs entitles you to over $37,000 over a five year period. In Florida, there are 56 different enterprise zones located throughout the state. If your business is in one of these zones, you’re eligible for a number of tax credits that you can apply to both income tax and also your sales and use tax. For example in Florida, if your business is in one of these enterprise zones, you can receive up to 35% of the wages you pay to employees each and every year. You can also receive up to 20% of wages for your employees that you can apply to sales tax.

For more information about state location zones in your specific state, please visit us on the web at

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