EZ Credits Available For up to 15 years:

Hiring Tax Credits of up to $37,440 for Every Eligible Employee Sales and Use Tax Credits on the first $20 million of qualified equipment purchased annually Business Expense Deductions Net Operating Loss Carryover Net Interest Deduction for Lenders

If your Business is in an Enterprise Zone, you are Eligible for Income Tax Credits!

Enterprise Zone Incentives The California EZ Program is a unique opportunity for your business to reach its full potential by utilizing significant tax credits not available to businesses located outside the EZ. This gives you a real competitive advantage.

At Rex Halverson & Associates, LLC, (RH&A) we are dedicated to helping your business claim the maximum amount of EZ credits that you are entitled to. Our team of consultants will oversee the documentation of each employee you hire and every piece of equipment you purchase, and our services cost you only a fraction of the credits that are actually realized by your company. With over $37,440 offered for each eligible employee and a sales/use tax credit on all purchases of qualified equipment, claiming your Enterprise Zone credits will be the smartest decision you ever made! Call us today and we will immediately determine whether your business is in the zone and begin the process of documenting

Rex Halverson & Associates

1201 K St., Suite 970 Sacramento, CA 95814 916.444.0015 Tel 916.444.0042 Fax
rhalverson@halversontax.com www.halversontax.com

State & Local Tax Advocacy & Consulting

Tax Incentives to Grow Your BusinessCALIFORNIAS ENTERPRISE ZONE PROGRAM Designation as an Enterprise Zone can yield major benefits for businesses located within the zone. Each year, thousands of businesses in California take advantage of millions of dollars in state tax credits through the California Enterprise Zone Program. These credits eliminate state income tax liability dollar for dollar, promoting economic development in places like Richmond, Compton, Long Beach, San Diego, Sacramento, Rancho Cordova, West Sacramento, San Francisco, Santa Clarita, Oakland, Santa Ana, San Joaquin, Stanislaus and Merced Counties, while rewarding growing businesses for hiring new employees.

OUR EZ SERVICES:

DETERMINING EZ STATUS DOCUMENTING ELIGIBILITY CREDITS

CALCULATING ACQUIRING SUMMARY

UNPARALLELED EXPERIENCE RH&A has assisted all of the following cities and counties in the successful preparation of their Applications for Designation as an Enterprise Zone since 2005: Calexico, Imperial County, Compton, Delano, Long Beach, Merced County, Richmond, San Diego, National City, Chula Vista, San Francisco, Santa Ana, Stanislaus County and West Sacramento. No other tax consultant can claim to have assisted more cities and counties in obtaining their EZ Designation. Add to that fact that Rex Halverson was the former Deputy State Controller, Taxation for California and sat on the Board of Equalization, and you can come to only one conclusion: We have unparalleled expertise and relationships to assist you in documenting, securing and defending your EZ tax credits if challenged later by the Franchise Tax Board on audit.

VOUCHERS

OF TAX BENEFITS

Helping your business reach its goals!

THE HIRING TAX CREDIT THE SALES & USE TAX CREDIT

HIRING CREDIT EXAMPLE

Year Annual Hours Worked X Hourly X Year = Wage % Tax Credit

Your business can earn $37,440 in state tax credits for each qualified employee hired. These credits offset the taxes you owe dollar for dollar. The hiring credit

A taxpayer engaged in a trade or business within an EZ can take a franchise or income tax credit for sales or use tax paid or incurred in connection with the purchase of qualified property. This includes machinery and parts used in processing, fabricating, manufacturing, and for environmental control efforts, as well as data processing and communications equipment. The credit amounts to the sales or use tax paid on all purchases of up to $1 million for individuals and $20 million for corporations annually.

1 2 3 4 5 Total

2,080 2,080 2,080 2,080 2,080

X $12.00 X X $12.00 X X $12.00 X X $12.00 X X $12.00 X

50 40 30 20 10

= $12,480 = = = = $ 9,984 $ 7,488 $ 4,992 $ 2,496 $37,440

applies to qualified employees hired after the EZ designation date or the expansion approval date, whichever is later. The credit is 50% of qualified wages in the first year, 40% in the second year, 30% in the third year, 20% in the fourth year and 10% in the fifth year of employment. Employees can qualify based on a variety of criteria, which RH&A will determine and document for you.

What is an EZ? An EZ is an economically distressed area designated by the state to provide tax incentives to businesses to locate, invest, and operate within the area and to provide job opportunities for residents.

OTHER SERVICES OFFERED BY REX HALVERSON & ASSOCIATES We specialize in the resolution of state and local tax controversies, i.e., tax audits, but also consult on all aspects of state and local tax matters, including franchise, income, sales, use, fuel, property, and payroll taxes. If you have a complex tax issue, e.g., a merger and acquisition, or need a ruling request drafted, a levy or lien released, a settlement or offer in compromise negotiated, or a tax appeal handled, please give us a call at 916444-0015.