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.

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.

San Joaquin County’s governmental bodies have rallied behind a proposed expansion of the region’s business-friendly Enterprise Zone, but economic development leaders say a fight to keep the program alive is upcoming.

San Joaquin County Economic Development Director Fran Aguilera adamantly supports the EZ.  ”The zone is the biggest tool we have to attract business, and to keep them here.  It’s ludicrous. If you do something that hurts businesses … you’re hurting employment.”

Read the story here.

Sarting toda, the new HCD voucher fees are in effect.  Every application to the state will now cost $15 instead of $10.  Here is the HCD’s Voucher Fee Increase Memo.

A plethora of different business group are collaborating together to host a small business tax forum which will include discussions on taking advantage of the Enterprise Zone Program.  The different groups include Oakland’s Mayor, Alameda County Small Business Development Center, Northern California Small Business Financial Development Corporation, Black Economic Council, Hispanic Chamber of Commerce, East Bay Economic Development Alliance, The Women’s Chamber of Commerce, Oakland Metropolitan Chamber of Commerce, African American Chamber of Commerce, Oakland Chinatown Chamber of Commerce and the Alameda County Bar Association.

 Here is the flyer for the event.

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.

Pharmaceutical giant Bayer cut 39 jobs, but is not at risk of leaving the Oakland Enterprise Zone reports the Bay Citizen.  Read the article here.

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.

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.