The letter below is from Amy C. Mmagu, the Legislative Assistant from CalChamber, welcoming new businesses into the fold.

Dear California Businesses For Enterprise Zones Coalition Members and EZ Supporters:

For those of you who recently joined CalChamber’s California Businesses for Enterprise Zones coalition, we would like to extend a warm welcome, and for those who are continuing members, thanks for your continuing support of EZs!

We just wrapped up the Legislative Session for 2009, which is in recess until January 2010. However, legislative activity concerning EZs has been scheduled to continue throughout the legislative recess months, including informational hearings and work on legislation. It will be important for EZ supporters to stay engaged, as we work to protect the strength and integrity of the EZ program.

The Assembly Committee on Jobs and Economic Development has hearings scheduled for the month of October in both Northern and Southern California:

Northern California:
Thursday, October 8, 2009
10:30 a.m. to 1:30 p.m.
San Jose, California
This hearing focused on the role of EZs as a facilitator of global innovation and manufacturing

Southern California:
Wednesday, October 14 hearing
10:00 a.m. to 1:00 p.m.
San Diego, California
This hearing will focus on workforce development and measuring success of the program

Public comments will be taken at both hearings. We are encouraging EZ supporters to attend the hearings in your respective geographical areas and speak during public comment period, which have been scheduled to take place during the lunch hour to facilitate members of the public’s work schedules.

In particular, businesses with success stories about the program are encouraged to attend. If you are or know of a business with a success story (whether attending or not), please contact me at amy.mmagu@calchamber.com.

We will continue to be in touch regarding further EZ developments.

Thanks!

Amy C. Mmagu

The city of Hesparia is one of the newest additions to the California Enterprise Zone program.  If you operate a business in Hesperia, contact us for a free consultation to see what tax credits are now available to you.

Click here for a map of the new enterprise zone boundaries.

Click here for the official announcement.

San Joaquin received positive news for their economic development efforts, with the state of California extending their current enterprise zone to 656 square miles. The zone received conditional approval last year, however the final designation was key to establishing the region’s appeal to local businesses.

Most notably, this increase now includes several wineries and the General Mills facility in the city of Lodi.

If you are in the San Joaquin enterprise zone and are interested to see what tax credits you have available to you, please contact us for a free consultation.

Despite a strong effort, the State of California has not given the city of Oxnard its desired Enterprise Zone. This has caused a significant stir in the region, since, from all appearances, Oxnard seemed to be an excellent candidate.  Instead of Oxnard, the state chose to award its new designations to:

• Hesperia
• Taft
• Tulare
• Pittsburg
• Sacramento

The Pacific Coast Business Times showed considerable consternation at the state’s decision:

“Oxnard is the biggest city in the biggest county in the tri-county region. It has a pro-business attitude, plenty of land and utility resources, a large and eager workforce and a desire to lead the state’s economic recovery. But that apparently means nothing in Sacramento, where the California Enterprise Zone Program recently turned down Oxnard’s request to join 41 other enterprise-zone locations in the state.”

At long last, Merced received its final designation and remove the “conditional” tag. Presumably all the maps and TEA should be finalized as well. Merced businesses can run with the ball and fully utilize the great Enterprise Zone benefits.

Dennis Wyatt, reporting from the Manteca Bulletin, has said that the future Spreckles Park and Manteca Commerce Park firms are moving forward with Enterprise Zone strategies.

Wyatt reported that Manteca Chamber of Commerce Chief Executive Officer and Manteca Council Member Debby Moorhead believes not enough businesses know about the advantages of the enterprise zone designation or even what parts of Manteca are included. That is why the chamber made the enterprise zone the focus of its quarterly luncheon on Wednesday, Aug. 5.

If you have a business in the Manteca enterprise zone, please contact us directly for a free tax consultation.

Jim Costa, the congressman representing the Fresno area, announced that $1.7 million dollars has been awarded to the Fresno Area Hispanic Foundation in order to help stimulate the local economy. Specifically the funds will help to expand a local commercial building which assists local businesses to take advantage of the Fresno enterprise zone. The US Department of Commerce was the government division that designated the funds. “Small businesses are the backbone to the City of Fresno’s local economy,” Costa said. “This funding will be a shot-in-the-arm to our enterprise zone, encouraging entrepreneurship and furthering the important work of the Fresno Area Hispanic Foundation”

From micro-loans to business advice, this expanded location will help local members of the hispanic community to develop new businesses as well as enhance pre-exisiting enterprises. Estimates currently suggest that 900 new jobs will be created by this project.

The new Pasadena Enterprise Zone is significantly larger and covers both commercial and industrial zoned land within the City of Pasadena.  In addition, the City of Pasadena offers local benefits to businesses located within the Enterprise Zone boundaries.  Both the state and local benefits apply during the life of the Pasadena Enterprise Zone from April 10, 2007 until April 10, 2022.  If you’re in the Pasadena area, contact us to see what tax credits you can take advantage of.

Find Out if you Are in the Zone

Step One: Are you located in the 1992 Designation, 2007 Designation or both?

Copy of overlay map

1992 Street Ranges ; 1992 Boundary Map

2007 Street Ranges ; 2007 Boundary Map

• If your business is only located in the 1992 Street Ranges, you can utilize the State Tax Credits from April 10, 1992 to April 9, 2007. If your business is only located within the expansion area, you can utilize the State Tax Credits from September 13, 1999 to April 9, 2007.

• If your business is only located in the 2007 Street Ranges, you can utilize the State Tax Credits from April 10, 2007 to April 10, 2022.  If your business is only located within the expansion area, you can utilize the State Tax Credits from March 6, 2008 to April 10, 2022.

• If you are located within both the 1992 and 2007 Street Ranges, you can utilize the State Tax Credits from April 10, 1992 to April 10, 2022.  Please note: you must file two separate Franchise Tax Board (FTB) 3805Z forms for your 2007 tax filing year.

Step Two: Does your business qualify for the local benefits offered through the City of Pasadena?

Copy of local incentive map

Local Incentive Matrix

• If your business is located within the Enterprise Zone Business Development Area (EZBDA), your business qualifies for Building and Planning permit fee waivers. In addition, if you own a business, the City will waive your business license fee. Although fee waivers are permitted for businesses located within the EZBDA, business are still required to obtain required building and planning permits and business licenses from the City of Pasadena. Nonresidential property owners are excluded from receiving the business license fee waiver.

• If your business is located within the Enterprise Zone Technology Development Area (EZTDA) and if the land use is primarily used for scientific research (Research & Development Business) then your business qualifies for the Building and Planning permit fee waivers, as well as the business license fee waiver. To take advantage of this benefit, Research and Development businesses must obtain a letter from the Enterprise Zone Office first before applying for the fee waivers. Nonresidential property owners are excluded from receiving the business license fee waiver.

Business Incentives
Hiring Credit Program
This five year state tax credit, potentially up to $37,000 per qualified employee, for full-time or part-time employees that meet one of the twelve qualifying criteria under the Hiring Credit Program. Potential criteria includes but not limited to: previously laid off due to plant closure or downsizing, military veteran, public assistance recipient, and resident of a targeted employment area. Enterprise Zone business must obtain a Hiring Credit Voucher from the Pasadena Enterprise Zone Office.

• Targeted Employment Area Ranges for 2007 Designation
• 2007 Targeted Employment Area Map
• State Income Limits 2008 to 2000

Sales and Use Tax Credit
Allows Enterprise Zone businesses to claim a state tax credit equal to the sales and use tax paid on the purchase of qualified equipment. Qualified equipment includes assets such as manufacturing, data processing, office, audio/video, and computer equipment.

Business Expense Deduction
Enterprise Zone businesses may deduct up to 40% of the cost of qualified property purchased for exclusive use in an Enterprise Zone during the first year it’s placed in service.

Net Operating Loss
Enterprise Zone businesses may elect to carry forward 100% of their net operating loss for 15 years.

Net Interest Deduction for Lenders
Lenders can earn a deduction from income on the amount of net interest earned on loans made to Enterprise Zone businesses. Businesses looking for an edge in applying for a loan should bring this credit up with your lender.

With the current economic conditions, companies that are commissioned with local economic development are planning to utilize California’s Enterprise Program to attract new businesses.  Redding.com has reported the following:

With the recession forcing many companies to put expansion plans on hold, the EDC is focusing more on business retention, O’Sullivan said, promoting the Shasta Metro Enterprise Zone, which gives hiring credits to businesses.

In the past year, the enterprise zone has grown from about 800 credited employees to 1,300 credited employees, accounting for $13.5 million in hiring credits to companies, O’Sullivan said.