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Posts Tagged ‘C & I Tax’

Assemblyman V. Manuel Pérez Appointed As The Democratic Whip

Monday, December 3rd, 2012 | Enterprise Zones, Legislation, Tax News


From today’s Imperial Valley News:

Sacramento, California – Today, State Assembly Speaker John A. Pérez announced his new leadership team, appointing Assemblyman V. Manuel Pérez (D-Coachella) to the position of Democratic Whip.  The announcement was made during the swearing-in ceremony of the California State Assembly’s 2013-14 session.

“There is a lot of work to be done to keep the economy growing and get our communities back to work,” said Pérez, “and as a senior member of the Legislature entering my third and final term, I am pleased to be bringing my policy skills to bear as a member of the Speaker’s leadership team.”

As a member of Democratic leadership, Pérez will no longer serve as the committee chairman of the Assembly Committee on Jobs, Economic Development, and the Economy.

Also today, Pérez was nominated by his peers to serve as Vice Chair of the California Latino Legislative Caucus.  As Vice Chair, Pérez will work closely with State Senator Ricardo Lara, Chair, to set the direction and priorities of the Caucus.  The Vice Chair serves a one-year term.

Among his first actions of the 2013 session, Pérez introduced AB 28, a bill that adds accountability and transparency measures to the California Enterprise Zone program, a state program designed to attract business investment and support job creation in low-income and underserved communities.  Since his election to the State Assembly in 2008 and throughout his tenure as chair of the Assembly Jobs Committee, Pérez has been a vocal advocate to protect and strengthen this economic development program.

With the newly redrawn Assembly District lines, Pérez now represents the 56th district, which comprises the cities of Blythe, Brawley, Bermuda Dunes, Calexico, Calipatria, Cathedral City, Coachella, Desert Hot Springs, El Centro, Holtville, Imperial, Indio, Mecca, Oasis, North Shore, Salton Sea, Thermal, Thousand Palms, and Westmorland.

San Bernardino EZ Expands

Thursday, December 1st, 2011 | Enterprise Zones, Tax News


Effective November 8, 2011, the SBVEC has expanded by about 4 square miles.  Read the full story.

Bayer Cuts Jobs, But No Need to Panic

Monday, September 27th, 2010 | Enterprise Zones, Tax News


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.

Salinas Valley EZ Creates Jobs

Tuesday, July 27th, 2010 | Enterprise Zones, Tax News


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.

Santa Clarita Wants More EZ Land

Friday, July 23rd, 2010 | Enterprise Zones, Featured Zone, Tax News


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.

Hesperia Joins Forces with Private Sector to Tout Enterprise Zone Benefits

Monday, July 19th, 2010 | Enterprise Zones, Featured Zone, Tax News


This article appeared in this weekend’s Hesperia Star.

Senator Steinberg Pulls SB 974 from the JEDE Committee Vote

Tuesday, June 29th, 2010 | Enterprise Zones, Legislation, Tax News


Less than 24 hours before the JEDE committee was set to vote on Steinberg’s SB 974, Steinberg pulled the bill from the committee.  According to the JEDE committee, because the bill is a lax levy, it is not subject to July 2, 2010 deadline.  The bill may resurface later, but we can only assume that Steinberg had a good reason to pull the bill just before the vote.

Dan Walters Latest EZ Piece Milder Than Usual

Tuesday, June 29th, 2010 | Enterprise Zones, Tax News


Walters, typically very hostile towards Enterprise Zones, issued a short article this morning in which he urges a review of what he considers “all tax loopholes.”  The article notes that LA City Mayor Antonio  Villaraigosa recently took a shot at Senate President Pro Tem Steinberg for authoring SB 974 which seeks to shift EZ funds to a new high school training program.  The article also notes that Gov. Schwarzenegger recently issued his support for expanded EZs.  In conclusion, Walters merely seeks a wholesale review of all tax “loopholes” rather than the usually vociferous and targeted cry to eliminate specifically the Enterprise Zone program.  This could be seen as recognition that the EZs have strong support from upper levels of government and more importantly, that being able to tout the EZ program has immediate and positive tangible and intangible effects on the business climate and job creation.

Austin Beutner Backs EZ Program

Friday, June 25th, 2010 | Enterprise Zones, Tax News

In today’s Daily News, Austin Beutner, LA’s first deputy mayor and CEO of the Office of Economic and Business Policy, issued a strong statement in favor of the expanded LA Enterprise Zone. More importantly, he backed the general tax policy underlying the EZ Program, i.e. tax credits bring in business and thus more than pay for themselves with other tax revenue and job creation. This is directly contrary to the unions and others who currently oppose the EZ Program.  Beutner had this to say:

Indeed, proof of sincerity on the part of City Hall once was a hurdle in bringing Los Angeles’ economy back to life. But no more. Ronald Reagan used to joke that the scariest words in the English language are: “I’m from the government, and I’m here to help.” Well, the lesson of this “L.A. Story” is that the city government can and will continue to help businesses, including those already here, that want to be a part of our comeback.

I’ll give you an example of this new approach, which occurred recently: Baxter Biosciences, and the expansion of the East Los Angeles State Enterprise Zone.

Baxter, an Illinois-based biotech firm with more than 1,100 employees here in Los Angeles, was hedging on its Southland future despite having opened its doors here nearly 60 years ago. The city’s Office of Economic and Business Policy met repeatedly with company officials since the beginning of this year. We worked with the state to create an expanded enterprise zone that would allow Baxter not only to remain here, but to grow – in this case, by taking advantage of lower operating costs and newfound tax credits.

The result: Baxter stayed put in Los Angeles.

Will there be future Baxter success stories in L.A.’s future? We certainly hope so. It won’t be for lack of effort or for failure to think outside the box.

Los Angeles is long past overdue for a comprehensive overhaul of a business tax code most likely designed for businesses that shod horses and sold blocks of ice for a living. It’s that outdated.
We must better understand what businesses – trade, transportation and clean technology, to name but three – will define 21st century California. Yes, we must offer encouragement and incentives. But we also have to do this in a sensible way. These necessary changes to the city’s tax code must take into account the full impact on revenue and city expenses.

It is not going to be easy, but it’s something we must do if the city is to have a bright economic future.


Weekly Featured Enterprise Zone: Modesto, CA

Wednesday, June 23rd, 2010 | Featured Zone

Areas of Modesto have been designated to be included in the Stanislaus Enterprise Zone by the Governor of California through The Housing & Community Development Department.  Being in the EZ provides businesses with tax incentives offered by the State to aid economic growth and enhance the community.

What are the incentives?
The following incentives are available through the State of California, from which the following summary was obtained:

Hiring Tax Credits
EZ businesses can earn up to $31,574 in State tax credits for each qualified or voucher employee hired over a five-year period.  Refer to The Alliance for information about eligibility criteria to determine whether an employee qualifies for this credit.

Sales & Use Tax Credits
EZ businesses may receive the sales or use tax credit for the purchase of manufacturing or processing machinery, data processing and other equipment used in the EZ.  Individuals, partnerships, subchapter S corporations, and limited liability companies can claim a credit on the first $1,000,000 of qualifying purchases per year, while corporations can claim credit on the first $20,000,000 of purchases per year.

Business Expense Deduction
Up front expensing of certain depreciable property can be claimed.

Preference Points
EZ businesses can earn preference points on state contracts.

Operating Loss Carryover
Up to 100% of the Net Operating Loss may be carried forward for up to 15 years.

Net Interest Deduction
Lenders to EZ businesses may receive a net interest deduction.

Unused Tax Credits
Unused tax credits can be applied to reduce future tax liability.

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