In a recent survey, ”almost three-fourths (73%) of California firms that do business in multiple states say it is harder doing business in the Golden State than in other states, according to the 2012 business climate survey of the California Foundation for Commerce and Education.  That finding is higher than in 2011 (57%) or in 2010 (63%). The study of 699 businesses is sponsored by the California Chamber of Commerce. No one in the 2012 survey said California is an easier place to do business.”

Respondents are “overwhelmingly unimpressed by California’s state government. Only 2% could name a state action in the past year that helped make it easier to run their business.  Among the action named were enterprise zone tax credits, worker’s compensation reform and minimum-wage increase failed.”

Read the full OC Register article.

The Second District Court of Appeals today ruled that the enterprise zone sales and use tax credit of Revenue and Taxation Code Sec. 23612.2 is not available in connection with the purchase of current expense assets, but rather only with the purchase of capital assets.  Read the full opinion.

Assemblyman Louis Alejo, who has been a big supporter of the EZ program over the last few years, has introduced a new bill, AB 484, to address the operation of expiring zones.   Assemblyman Alejo’s district includes Watsonville which is set to expire.  HCD has indicated that it will not be renewing expiring zones or designating new ones for now.  Alejo’s bill seeks to extend the expiring zones until new zones are designated.

The California Supreme Court has scheduled oral argument in the Dicon case for Tuesday, March 6, 2012 at 9:00 a.m. in San Francisco.

Brown’s budget released today only hints at future reform measures to the Enterprise Zone program.  Perhaps after getting rid of RDAs, the unions are a bit gunshy about outwardly attempting getting rid of another vehicle that has anything to do with jobs while the economy struggles.  Here is what the budget said about Enterprise Zones:

“The resulting stability from a balanced budget will give businesses the certainty and the reassurance they need to invest in California. In addition, the Administration will propose legislation to reform the enterprise zone program and move to a mandatory single sales factor for apportioning multistate business income. Such changes will allow the state to afford investments in manufacturing, business incentives, and other tax relief.”

From the Sacramento Bee:

Gov. Jerry Brown will release his budget today at 2:30 p.m. after his administration mistakenly posted the document on the Department of Finance website.
The projected budget deficit is $9.2 billion through June 2013, according to sources who have seen the document.
The Democratic governor was scheduled to release the budget on Tuesday and dismissed reporters’ questions this morning about his plan, saying he wanted to be sure the media would show up for next week’s release.
The budget announcement will be streamed online live at his website.

Let the games begin.  Speaker Perez spoke out about the redevelopment case and what it means to Enterprise Zones.

“A second look will also no doubt be taken at the issue of local economic development in the wake of the California Supreme Court ruling that abolishes more than 400 local redevelopment agencies next month. Speaker Perez dismissed any notion that actual RDAs will be recreated by the Legislature; instead, he emphasized the need for ways to promote job creation and economic stimulus that doesn’t favor one region over another. And he suggested that the scrapping of RDAs could reignite his the effort of many Democrats to revise the state’s enterprise zone program.”

Read the full article.

Tala Enterprise, a clothing maker that idled its denim line in China to bring its production back to the United States, officially opened a new knitwear manufacturing plant in the Coachella Valley Enterprise Zone.

“Assemblyman V. Manuel Pérez noted that the plant’s opening in the Coachella Valley Enterprise Zone comes at a critical time when California has frequently been labeled as unfriendly to business.

The very existence of this new business illustrates the importance of the state’s enterprise zones, which provide companies extra benefits to open, the Coachella Democrat said.”

Read the full article.

Here is the FTB’s Tax News for January.

The 2011 Heroes Act expands the WOTC to include:

• Employers that hire veterans who have been looking for employment for more than six months may be eligible for a Returning Heroes Tax Credit of up to $5,600 per employee; employers that hire veterans who have been looking for employment for less than six months may be eligible for a credit of up to $2,400 per employee.
• Employers that hire veterans with service-connected disabilities who have been looking for employment for more than six months may be eligible for a Wounded Warriors Tax Credit of up to $9,600 per employee.

 The credits apply to individuals who begin work after November 21, 2011 and on or before December 31, 2012. Keep in mind that the Heroes Act does not extend WOTC’s current December 31, 2011 sunset date for all other potentially elilgible WOTC participaants.