While the anti EZ academicians spew about the inefficacy of the program, they ignore the plain reality that businesses do rely on the EZ program to expand their businesses.  Empirical evidence alone will never provide the full picture.  This is particularly so here where the empirical data is being questioned.  Couple that with the mounds of strong anecdotal evidence that has come to light recently clearly shows that the EZ program provide a significant benefit to California businesses.  When these businesses grow, or decide not to move out of state, California’s employee win as does the government with increased revenue and better job projections.  An article in this weekend’s Santa Clarita Valley Signal is illustrative.

The enterprise-zone tax credits have played a key role in the business’ growth over the past two years, [DME Direct ]owner Andrew Everett said.
“We started this business from our house,” Everett said. “The purchase of our warehouse was directly related to the fact that it was in the enterprise zone.”
Because of the credits, “we can employ more people and grow our business,” Everett said, adding that the tax savings translated to five new employees over the past two years.

 The full article can be read here.

Here’s the link to the FTB’s August Tax News.

Taxpayers have claimed only about $30m out of the $400m in New Jobs Credit.

Brad Frost, Chairman of the Shasta County Economic Development Corporation, wrote an op-ed piece in today’s Redding Searchlight in which he praises the EZ as instrumental in improving economic conditions and creating jobs.  The piece quotes Bob Luddy, President of Captive Air, a large Shasta County employer, who had this to say:

The opening of the Redding facility enabled Captive Aire to provide quick deliveries at lower costs to our Pacific West customers.  In particular, the enterprise zone tax credits were a major consideration when deciding on this location. These tax credits resulted in significant tax savings which will greatly enhance our ability to sustain profits and thus ensure the stability of the California operations for the future.

It’s hard to argue against the hard facts attested to by those in the business community, especially when those opposed to the EZ are either politicians or unions, neither of which have impressive track records in running businesses and creating the jobs that everyone is talking about and that California so desperately needs.

 The full piece can be read here.

Case in point on how the Enterprise Zone keeps companies from being courted and ultimately leaving California.  In San Jose, companies get the support and financial incentives they need to make the decision to stay in California.

 In an economic climate that has other states from Nevada to North Carolina trying to lure companies out of California, it’s the only state program the city has to help it gain a competitive edge.

“We’re not like other states where they can write a check if you locate a plant there. It’s the only thing we have,” said Harry Mavrogenes, executive director of the redevelopment agency. “We’re not trying to give away money, but we’re trying to diversify our base and induce new types of businesses that we might not have into moving here.”

 The full article appears here.

Hildy Carrillo, executive director of the Calexico Chamber of Commerce wrote an op-ed piece today in the Imperial Valley News about the great benefits of the EZ program and urged its continued existence especially in light of the current economic conditions.  The entire piece can be read here.

The Desert Sun reported on Mark Weber move into the Coachella Valley EZ manager.   Mark, who replaces Hal Joseph, seems to have significant expertise that should hopefully give him the tools he needs to lead the zone.  The full article can be read here.

The Monterey County Herald had an article outlining the number of new jobs created through the Salinas Valley EZ.  The full article can be read here.

Three years after Santa Clarita’s enterprise zone went into effect, the business community is pushing to have it expanded to cover more of the valley.

California’s 42 enterprise zones are intended to boost business in disadvantaged areas by providing tax breaks for businesses that hire workers who meet certain criteria, from laid-off workers to veterans, and for specific projects such as business expansions.  Here is the link to the full article.

The National City Chamber of Commerce issued its official stand in favor of California’s Enterprise Zone program.  The complete letter from Pres/CEO Jaqueline Reynoso can be viewed here.

Here is the link to the July edition of the CAEZ newsletter.