John Shaffery Chairman, SCV Chamber of Commerce wrote this spirited op-ed piece in today’s Santa Clarita Vally Signal:

Your article about enterprise zones (“In the zone: A local look at the effectiveness of enterprise zones,” August 8, 2010) made a number of good points, but I think it is important to understand more about the importance of this economic tool for businesses – especially those in the Santa Clarita Valley.

To try and assess if enterprise zones are good or bad is the same as saying we’re not sure if a patient will react to an antidote – if you don’t give them the antidote then you can be assured of one thing: the patient will get sick and die.  California businesses have been sick and on life support for a number of years now. Businesses that want to be in California are trying to find every reason to stay here, and the enterprise zone tax credit program is a tool they can use to make their businesses more economically viable.

Let’s look for a moment at the California Legislative Analyst’s office estimate that enterprise zones cost the state $400 million. The CLA does not discuss the other side of this economic equation to determine the number of potential lost jobs if some companies didn’t have this tax credit available.

What if 50 California companies moved to another state that offered similar or more aggressive tax incentives? If each of those companies employed 10 people, that would mean 500 jobs lost in this state. Over a one-year period that may not seem like a lot. However, if you multiply that number by 10 years, you end up with 5,000 jobs going elsewhere.

The point to remember is that these types of tax incentives not only increase hiring, but they also are an incentive to keep companies from leaving. California has one of the most highly taxed, legislated and regulated business climates in the nation, and we can’t continue to think companies will just stay here because of our good weather and nice beaches.

Enterprise-zone tax credits are a vital part of the SCV’s economic engine as well as in 41 other areas across California. Every business owner and taxpayer should demand Sacramento leave the enterprise-zone tax credits alone.

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.

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

Considering that California has one of the highest unemployment rates in the nation, it is about time that companies begin taking advantage of the enterprise zone hiring tax credits. Reports are showing that businesses operating in the San Bernardino enterprise zone region increased their hiring-related tax credit usage in 2009 compared to previous years.

Andrew Edwards, from The Sun, reports, “In 2009, managers of 99 businesses requested some 940 hiring vouchers, and 857 of those requests were approved. That’s about 57 percent more requests than 75 businesses filed in 2008.  Enterprise zone officials maintain that the hiring credits and other tax incentives made it possible for firms to create 132 new jobs and keep another 725 on the books.  The 99 firms that sought tax incentives during the past year represent only a slice of businesses that could be eligible for enterprise zone-related perks.”

If your business in in San Bernardino or Colton, you may be eligible for numerous tax credits, contact us today to find out which tax credits you can apply for.

San Joaquin County has been hit hard by the recession, however the city and many local businesses finally have a reason a celebrate this week. The reason for the celebration is the news that the State of California has approved the requested Enterprise Zone boundary expansion that the region has been requesting for the past year.

Considering that the county has been battling an unemployment rate of 15%, this Enterprise Zone expansion should help to bring jobs to the area due to the numerous tax breaks businesses can partake in by hiring local employees.

The Enterprise Zone offers many perks to spur growth and give residents jobs. Local businesses can earn more than $37,000 in state tax credits for each local employee they hire.