Suit on tax credits for hiring poor workers moves forward

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in Hiring,Human Resources

A state court of appeals recently ruled that Richmond-based Dicon Fiberoptics adequately pleaded its claim against California’s Franchise Tax Board in a case involving a tax credit for hiring disadvantaged workers.

Dicon claimed that the tax board improperly wielded its audit power when it denied the company $1.1 million in tax credits for hiring disadvantaged workers under the terms of the California Enterprise Zone Act.

The Enterprise Zone Act applies to businesses operating in economically depressed areas. If those businesses hire certain categories of disadvantaged workers, they can receive a tax credit for wages paid.

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