The budget released today completely eliminates all of California’s 42 Enterprise Zones.  It also takes away all prior credit carryover.  However, many see this is a starting point for negotiations.  

Assemblyman Dan Logue, R-Linda, who opposes eliminating enterprise zones, said the state needs to do more to create jobs, not less.“The governor has to realize that to create wealth and revenue, you have to give businesses a reason to develop in an area,” said Logue.

He added in the last decade, the majority of new jobs created in California came in areas where there were enterprise zones.  But because the initial budget proposal from the governor often undergoes several revisions before it’s passed and signed, Logue said, Brown may be including the cuts as a negotiating tactic.

Read the full article here.

Press release from Siskiyou County:

Siskiyou County Economic Development council responded quickly to Senator Doug LaMalfa’s request for supporting documents to ensure the continuation of the Enterprise Zone program in California.  Governor Jerry Brown announced shortly after taking office that the enterprise zone tax credits may be eliminated in the new budget.  The SCEDC provided the Senator with a letter of support and testimonials from many Siskiyou County businesses who utilize the enterprise zone program.

January 5, 2011

The Honorable Doug LaMalfa                       

CA State Senator, 4^th District

State Capitol, Room 3070

Sacramento, CA 95814

Dear Senator LaMalfa:

The Siskiyou County Economic Development Council fully supports your efforts to ensure the continuation of the California Enterprise Zone program. The Siskiyou Enterprise Zone was created on June 22, 2008. The Siskiyou County Economic Development Council administers the zone in service of its eight partner cities and the County of Siskiyou.

The SCEDC works with its partner cities, CPA’s and businesses to help them utilize the program. The program has grown from 260 employee tax credit vouchers processed in 2008 to 542 vouchers processed in 2010.   Sixty-six employers voucher employees through the SCEDC of which 61 are categorized as small companies with less than 50 employees. The 542 vouchers processed in 2010 represent 542 jobs created within Siskiyou County.  

The value of enterprise zone tax credits to Siskiyou County employers is considerable given the number of privately owned, small businesses who use the program. The dollars that they are able to reinvest in their companies are critical to the economic recovery and growth in Siskiyou County.

Sincerely,

Tonya Dowse

Executive Director

Texas is “open for business” and using its Enterprise Zone to lure California businesses looking to relocate.  Is Jerry Brown listening?

With shovel ready sites situated in an enterprise zone the Levelland Economic Development Corporation sees the new Levelland Industrial Rail Park as the key to developing a diversified local economy.  By paring this new rail infrastructure with the local skilled workforce and integrating ourselves into the wind energy logistic supply chain, Levelland can take advantage of the expanding renewable energy industry exploding throughout the region.  Levelland also offers opportunities to California businesses considering relocation or expansion by helping reduce the normal stress related with such capital intensive projects.  Our exceptional economic environment, warm weather, famous hospitality and affordable cost of living make Levelland an ideal choice for businesses looking to make a move. Texas Governor Rick Perry says, “Texas Wide Open for Business” and Levelland is a great place to enter the Lone Star State. 

Read it here.

Newly elected Democrat Luis Alejo, of the 28th Assembly District, is lining up in favor of Enterprise Zones.  “The Enterprise Zone program should be strengthened rather than eliminated,”  Alejo said in a January 1 article in The Californian.  Although a new Democrat, Alejo was picked by Speaker Perez to be Vice Chairman of the Assembly Local Government Committee.  Alejo is also a member of the Assembly Budget Committee.  He joins JEDE committee chair Manuel Perez in voicing strong support for the Enterprise Zones.

Anaheim, Harbor Gateway and Santa Clarita Valley, according to California Newswire.  Nothing posted on the HCD site yet.  Here is the link to the California Newswire story.

The League of California Cities urges everyone to contact their local political leaders and educate them as to the benefits and worthiness of the EZ program.  “City officials from communities with Enterprise Zones are encouraged to begin talking to their legislators now about the jobs and economic benefits these zones bring.”  View the Leage of Cities piece.

Yesterday, the Board of Equalization voted to adopt the Nassco Formal Opinion.  This means  that EZ credits can be used to offset the Alternative Minimum Tax.  The decision will be final 30 days from yesterday at which time the opinion will be posted on the BOE’s website.

“Salinas, Greenfield and other south Monterey County cities lining up to take action are doing the right thing by approving expansion of the Salinas Valley Enterprise Zone.  By doing so, they are sending a message loudly and clearly that we welcome businesses to set up shop in our communities.”

  Read the article here.

Coachella valley EZ has come up with a simple yet catchy way to advertise its EZ.  They’ve put up road signs alerting businesses that they are “entering” an EZ.  Here’s the article.

Here is the FTB’s November Tax News.