Cal-Tax is reporting on a new Enterprise Zone related case before the SBOE:

An attempt by the Franchise Tax Board to narrow the scope of the enterprise zone hiring credit by limiting seniors’ eligibility was rejected unanimously in a tax appeal decided by the Board of Equalization on August 19.

In the Appeal of DeVry, Inc., involving a higher-education provider, the Franchise Tax Board contended that the enterprise zone hiring credit for older workers is limited to those who are poor. The taxpayer, represented by Jon Sperring of PricewaterhouseCoopers and attorney Marty Dakessian of the law firm of Akerman Senterfitt, argued that seniors can qualify without income limitations.

Mr. Sperring and Mr. Dakessian also pointed out that the FTB was attempting to limit the number of disabled workers eligible for the credit by claiming the taxpayer failed to file a document that cannot be legally obtained.

Mr. Sperring stated that the FTB was relying on a single Employment Development Department document addressing a specific section of the Job Training Partnership Act eligibility statute which was not applicable to the section at issue in this appeal. He said the directive that the FTB presented specifically stated that it applied to one section, and not the one that was in dispute.

Regardless of the FTB’s assertion that this directive justifies the denial of the credits at hand, Mr. Dakessian also stated that the FTB’s interpretation of the directive conflicts with the EDD form, the instructions to the form, as well as the FTB’s own audit instructions.

Board Chair Dr. Judy Chu said logic doesn’t support the FTB’s position. She observed that there would be no need for a provision separately stating that seniors are eligible if they could qualify for an enterprise zone hiring credit under other provisions as low-income individuals.

DeVry Inc. employs 750 people and has 16 campuses in California.

Thanks to Chris Micheli for the tip.