Business Incentives
	Portions of Downtown Los Angeles are located in a Federal Empowerment Zone, where it receives specific tax credits to encourage the economic development of the area. Federal Empowerment Zone Incentives include: Employee Federal Tax Credit An employer may take a tax credit of 20 percent of the first $15,000 in wages paid to an individual who resides in the Empowerment Zone and works for an Empowerment Zone business. The tax credit is capped at $3,000 annually per employee. Department of Water & Power Discount New or expanding federal EZ businesses may be eligible for a DWP electrical rate subsidy of 35%. Los Angeles Business Tax Freeze Existing Empowerment Zone businesses can receive a business tax waiver of $500 and have business taxes frozen at current rate for five-years. Businesses new to the Empowerment Zone, either as startups or relocating to the zone from outside the City of Los Angeles, pay only $25 yearly for five-years. Bond Financing There are various bond programs available for financing projects. Bond programs provide long-term, low-interest access to capital. Projects may also be eligible for an Empowerment Zone bond overlay, which requires State approval. The City of Los Angeles’s Community Development Department (CDD) has experience with the various bond programs, and is more than willing to help. Community Development Bank Financing is available for projects in the Empowerment Zone. Loans may be used to fund projects which create jobs, provide goods and services, or eliminate blight. WorkSource Centers are workforce development centers that serve businesses by providing prescreening, customized training, applicant referral, labor market information, and other business services, all at no cost. WorkSource services are funded through the Department of Labor's Workforce Investment Act, and are designed with the goal of making your business or industry more competitive in the marketplace. For the convenience to businesses, the Downtown LA Retail Project office is located at the Downtown Los Angeles WorkSource Center at 315 W. 9th Street.
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