For more information on the Yuba-Sutter proposed Enterprise Zone expansion program, click the link below to download the full document:

Appearance – Resolution – Y-S Enterprise Zone Boundaries

Porterville has the distinction of being one of California’s first Enterprise Zones. The Enterprise Zone boundaries are roughly described as Highway 65 east to Plano Street, from Olive Avenue south to Gibbons Avenue.  Companies located in the Enterprise Zone are eligible to receive the following tax credits and benefits:

• Hiring Credits
• Sales or Use Tax Credit
• Business Expense Deduction
• Net Operating Loss Carryover (NOL)
• Net Interest Deduction for Lenders
• Preference Points on State Contracts
• Preference Points on Industrial Development Bonds
• Expeditious processing of plans and permits
• 10 year, 0% payment plan for permits and development fees

BUSINESS INCENTIVE ZONE

California’s only targeted tax area, Porterville is part of Tulare County’s Business Incentive Zone (“The BIZ”).  BIZ boundaries encompass the entire City of Porterville and offers many of the same benefits available through the Enterprise Zone program.  Businesses qualify for BIZ advantages based on the Standard
Industrial Codes (SIC).  Qualifying SIC codes are as follows:

2000 – 2099 Food Processing
2200 – 3999 Certain Other Manufacturing
4200 – 4299 Motor Freight Transportation & Warehousing
4500 – 4599 Transportation by Air
4700 – 5199 Transportation Service & Wholesale Trade

In exciting news for businesses located in West Berkeley, the Oakland City Council has announced that they have approved the expansion of the region’s enterprise zone to cover West Berkely, and the over 1,000 businesses that operate out of the city.

The Berkeley Daily Planet reports, “Berkeley’s primary motivation to pass the proposal was to keep Bayer Healthcare, the city’s largest private-sector employer, from leaving town. The company had threatened to outsource some of its manufacturing, a move city officials feared would lead to the pharmaceutical giant eventually shutting down its Aquatic Park campus entirely. As a result, Berkeley agreed to give Bayer $10 million in tax breaks for over two years, including a reduction in PG&E bills, as part of the enterprise zone, in return for which the company will remain in Berkeley and invest $100 million in the facility.”

This is exciting since it could help to bring new businesses into the area, and will help to offset the high cost of living in the area.

Many different financial programs make big promises but fail to deliver, however the Enterprise Zone offers local businesses with true incentives to help offset expenses. The Salinas Valley enterprise zone is proving this concept with its latest announcement that Salinas Valley businesses have received approximately $1 million dollars in tax credits.

The TV station, KION, reported the announcement and gave the following report on the program, “The main purpose of an enterprise zone is job creation; businesses can get more than $37,000 in tax credits for every person hired. Also, lenders may be able to receive a deduction on their net interest and companies can also increase their ability to gain state contracts.”

Small businesses in Santa Clarita have a new partner in their success. The Power Media Group, a local advertising agency, is helping companies around the area get through the recession.

Direct Sales News had this to say about the program, “The goal is also to help small businesses, which might be standing on the brink of collapsing, to re-think strategies and revive business through strategic marketing and advertising campaigns. Patricia also plans to fully promote businesses online through the Center’s Web site, and to support the operations through Power Women Business Center memberships of $250, $500 and $750 per month, which will grant women entrepreneurs access to the Center’s facilities and business consulting services.”

So how does the Santa Clarita enterprise zone play into the overall strategy? “Since the center will be located in the city’s Enterprise Zone, many of the small businesses hosted there may potentially qualify for enterprise zone credits, which constitutes a state income tax savings opportunity,” said Laura Biery, administrative analyst with the City of Santa Clarita’s Economic Development Division. Biery welcomed Patricia’s initiative. “The women’s business center will complement our other programs we have in the city very well.”

Fresno is offering to pay employers 80% of the wages for the next year. Here is the flyer and a link to the news clip about this new subsidy program for Fresno employers.

Click here for the link.
Click here to download the flyer.

Santa Clarita wins top honors for cities with populations greater than 50,000, while Vernon wins for cities with less than 50,000 residents.

The Los Angeles County Economic Development Corporation (LAEDC) today announced the cities of Santa Clarita and Vernon as the winners of its annual “Most Business-Friendly City in Los Angeles County” competition at its 13th Annual Eddy Awards on November 17, 2008. The Eddy Awards are attended by more than 700 leaders from the business, government, and education communities.

The City of Santa Clarita emerged as the most business-friendly city in LA County for the cities with more than 50,000 residents. Santa Clarita does not assess a utility user tax, allowing businesses to save up to five percent or more on their electric, telephone, water, and gas bills, and it has recently been designated as a State of California Enterprise Zone. Santa Clarita offers its businesses and residents a highly educated workforce, available land for development, site selection assistance, and expedited plan reviews and permit processing.

Click here for the full article and award details from CitySpur: Santa Clarita and Vernon Named Los Angeles County’s Most Business-friendly Cities

The State of California create the Enterprise Zone initiative in order to assist cities attract businesses, and one of the cities that have championed this opportunity was the City of Palmdale who received designation from the State for the Antelope Valley Enterprise Zone in February 1997.  They encourage businesses both small and large to take advantage of a number of tax incentives through the Antelope Valley Enterprise Zone. Any company located within the boundaries of the 61-square-mile Enterprise Zone may reduce its state business income tax through five tax incentives.

This particular area is experiencing tremendous growth due to its proximity to Los Angeles combined with the low cost of living.  And with the following five tax incentives, this particular enterprise zone is sure to see continued economic growth for years to come:

Hiring Tax Credit:
Firms may earn up to $31,574 in state tax credits for each qualified employee hired over a five-year period.

Sales & Use Tax Credit:
Corporations may earn sales tax credits on purchases of up to $20 million per year on qualified machinery or machinery parts used in the Zone. Partnerships and individuals may annually claim a credit on the first $1 million of qualifying purchases.

Business Expense Deduction:
You may deduct up to $20,000 of the cost of qualifying business equipment, furniture and fixtures or other depreciable personal property.

Net Operating Loss Carryover:
Up to 100 percent of Net Operating Loss may be carried forward for 15 years.

Interest Deduction for Lenders:
Lenders to Zone businesses may deduct direct expenses incurred in making the loan from the interest income. This may mean more favorable rates or terms for the borrower.

So if you have a business or you’re a tax professional who has clients that run their companies in the Antelope Valley Enterprise Zone, contact us and let us help you take advantage of the tax credits available.

The thriving metropolis of Los Angeles has three State Enterprise Zones as well as a Federal Empowerment Zone and a Renewal Community designation. Within these areas, businesses can take advantage of State and/or Federal tax credits and deductions not available to businesses elsewhere. The goal of the incentives is to stimulate business attraction, growth, and increased employment opportunities within economically challenged areas of the City.

Enterprise Zones assist businesses located in the zones to lower their operating costs by providing them with tax credits and deductions. The state offers incentives such as: hiring credits, sales & use tax credits, expense and interest deductions. The City of Los Angeles offers local incentives such as, DWP rate discount, site fee waivers, sewer facility hookup payment plans, Work Opportunity Tax Credit, and reduced parking rates.

The Los Angeles Enterprise Zone was conditionally designated by the State on October 15, 2006. When the designation becomes permanent it will be valid for 15 years. In addition, the Eastside State Enterprise Zone designation is valid through January 10, 2008, and the Harbor Zone through March 3, 2009

EMPLOYER HIRING CREDITS
Up to $37,440 over a 5-year period per each qualified employee can be claimed by an Enterprise Zone business as a tax credit. An employee can qualify under any one of 13 different categories.

SALES and USE TAX CREDITS
An Enterprise Zone business can receive a tax credit of 100% of the sales/use tax paid for equipment purchases for use in the zone. Machinery, machinery parts, telecommunications equipment and office equipment such as copiers, printers, fax machines and telephone systems also qualify.

BUSINESS EXPENSE DEDUCTION
An accelerated depreciation is available for tangible personal property the first year it is placed in service in an Enterprise Zone. Office supplies and inventory do not qualify. Limits: $20,000.

NET INTEREST DEDUCTION
Lenders can earn tax-free interest on loans made to Enterprise Zone businesses.

NET OPERATING LOSS CARRYOVER
100% of Net Operating Losses may be carried forward for 15 years to reduce the amount of taxable income for those years.

DEPARTMENT of WATER and POWER RATE DISCOUNT
The Department of Water and Power offers a five-year electric rate discount to new businesses that are moving into the zone and apply within 18 months for the discount. Existing businesses whose energy consumption in the 6-month period before the date of application was at least 35% greater than the monthly average in the prior 12 months also qualify.

SITE PLAN REVIEW and FEE WAIVER
The City provides a fee waiver for review of commercial or industrial architectural plans for projects of 40,000 square feet or greater located in an Enterprise Zone during an initial application for a site plan review.

SEWER FACILITY CHARGE EXTENDED PAYMENT OPTION
The City allows Enterprise Zone businesses qualify for a one-time lump sum payment exemption if the Sewer Facility Charge is over $17,000. The fee can be paid in installments over five years but interest is payable on any unpaid balance.

REDUCED PARKING ORDINANCE
This ordinance provides reduced parking requirements for Enterprise Zone businesses compared with other areas of the City.

WORK OPPORTUNITY TAX CREDIT (WOTC)
The Work Opportunity Tax Credit (WOTC) has been IMPROVED! The WOTC program is now good through 2011. Now any business anywhere can qualify for the credits as long as they hire persons between the ages of 18-39 who reside in either the Federal Empowerment Zone (EZ) or the Federal Renewal Community (RC) area. Los Angeles contains both an EZ and an RC. There are eight (8) additional eligibility categories, some of which are not dependent on the employee’s address. The WOTC hiring credit is worth up to $2,400 per year for each eligible hire.

San Diego has a rich history of business success and innovation, and it is also home to companies that are constantly visible on the national level.

Aside from the normal benefits that operating a business in one of the State’s California Enterprise have, such as:

• Tax credits may be claimed on up to half the wages paid to qualified new employees.
• Tax credits may be claimed for sales taxes paid on equipment purchased for manufacturing or production purposes.
• All net operating losses may be carried forward as a deduction in future years.
• Business equipment depreciation can be accelerated, up to a limited amount.
• Low-income employees can claim their own personal income tax credits.
• The state will give priority for Industrial Development Bond applications.
• Lenders (both commercial and private) may deduct net interest income on loans to Enterprise Zone businesses.

Running a business in San Diego also has additional benefits, such as:

• The Enterprise Zone Job Referral Service will assist with recruitment and pre-screening for new employees at no cost and will provide the necessary verification for you to claim tax credits on their wages.
• City staff can expedite permit applications and serve as liaison with other City departments.
  Certain development fees may be reduced or waived.
• New development projects located in the City’s Enterprise Zones are eligible for direct assistance by the City. Assistance includes help in determining project application requirements, fast track permit processing, liaison help in the development process.
• The City can provide an exemption from urban impact fees and housing trust fund fees.