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For a business to access this State tax credit, it must be located within the Enterprise Zone and hire eligible employees, which are identified under a number of categories established by California Department of Housing and Community Development (HCD). The Targeted Employment Area (TEA) category requires that an employee live within the boundaries of the designated TEA. Each Enterprise Zone\u2019s TEA is composed of census tracts that have at least 51% of residents of low to moderate-income levels. The purpose of designating a TEA is to encourage businesses in an Enterprise Zone to hire eligible residents of these low- to moderate-income areas. 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