Matteo just left the Army after 20 years of service. During his service, he managed to save a little money and is now entitled t
o a government pension. He wants to go back to his home state of Arizona and start manufacturing small, solar-powered panels for residential use. Although he knows he needs a storefront and an industrial site, he is not 100 percent convinced about where to locate. However, he does know for certain that one of his top priorities is to limit his tax liability associated with this new business. What would you suggest for Matteo? a. He should not check out the enterprise zones in Arizona
b. He should check out the enterprise zones in Arizona
c.He should not pay tax to the qovernement
d. None of the above
The answer is: B) He should check out the enterprise zones in Arizona
Explanation:
Enterprise zones were created to attract new businesses and investments to certain urban areas by offering tax concessions, infrastructure incentives and reduced regulations. Companies usually can locate for free there (some give out land to businesses for free), and the business don't have to pay certain taxes for doing so (usually local and/or state taxes, but sometimes even some federal taxes).
