Glossary of Terms

Empowerment Zone — Highly distressed urban and rural communities designated by the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) that are eligible for grants, tax credits, bonding authority and other incentives.

Federal Tax Incentive — A tax incentive offered by the federal government.

Franchise Tax Board (FTB) — The California state agency responsible for administering the personal and corporate income tax.

Internal Revenue Service (IRS) — The federal agency responsible for tax collection and tax law enforcement.

Renewal Community — Highly distressed urban and rural communities designated by the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) that are eligible for grants, tax credits, bonding authority and other incentives.

Research and Development (R&D) Tax Credit — A non-refundable tax credit offered by the federal government and most states to incentivize companies to improve products and processes.

Sales or Use Tax Credit — A tax credit offered under the California Enterprise Zone program. Businesses may receive a credit in the amount of the sales or use tax paid on qualifying property placed in service within an Enterprise Zone.

State Tax Incentive — A tax incentive offered by a state government.

Work Opportunity Tax Credit (WOTC) — A federal tax credit offered to employers that hire individuals from the program’s targeted groups. The maximum credit is $9,000 per qualifying employee.