Enterprise Zones are economic development tools many cities and states use to attract companies and jobs. Most commonly, industrial parks are designated as Enterprise Zones, or EZ’s, but they can be found anywhere there is a concentration of businesses or manufacturers.
Once an area is designated an Enterprise Zone (either by the city or the state, depending on the state statutes), companies that build or expand within the EZ can obtain tax credits on sales tax for items purchased for the build or expansion; on job creation (typically a credit in the amount of the workers’ salaries, or a set amount per job created); on retailers’ occupation tax paid on building materials; on state utility taxes; and other qualifying purchases or taxes.
A state’s EZ statute designates the benefits that companies can receive, and if there are any pre-requisites such as job creation or level of investment in the building or expansion. Therefore, each state treats EZ’s differently.
Many states have replaced EZ programs with Opportunity Zone (OZ) programs. The benefits can be the same or different as with EZ.
If you want to find out if you are in an EZ, search for “Enterprise Zone Maps, (your state)” in Google.
It is much easier to find out if your company is in an OZ. Just go to https://opportunityzones.hud.gov/resources/map and put your company’s address in the search bar. If your firm is in a shaded area, you are in an EZ.
Lakeview Consulting includes research into whether a firm is in an EZ and OZ when we engage with a company to conduct grant/incentive research.
