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Posts Tagged ‘california enterprise zone’

Democrats Gain Supermajority in Both Legislative Houses

Wednesday, November 7th, 2012 | Enterprise Zones, Legislation, Tax News


The Sacramento Bee is reporting that the Democrats have gained a two thirds majority in both legislative houses.  Consequently, they can raise taxes without any Republican opposition.  What this means for the EZs is yet to be seen.  There are some bright spots.  First, many Democratic legislators have EZs in their districts and they have come out in favor of continuing the program.  Second, given that Prop 30 passed, it is yet to be seen how aggressively the democrats will pursue further tax hikes, particularly employment related credits, in a still sensitive economy.  Stay tuned….

Governor’s May Revise Steers Clear of Enterprise Zones

Monday, May 14th, 2012 | Enterprise Zones, Legislation, Tax News


Governor Brown’s May Revise does not specifically mention enterprise zones.  In a number of places, the budget blames lower revenues on increased and “unpredictable” use of corporate tax credits as well as the lack of the type of credit limitations that existed in 2008-2009.

Supreme Court Rules In FTB’s Favor in Dicon Case

Thursday, April 26th, 2012 | Enterprise Zones, Tax News


In an unanimous opinion today, the California Supreme Court ruled  that the FTB can in fact audit behind the EZ voucher.  The voucher certificate is no longer considered “prima facie” evidence that the worker is qualified for the EZ program.  The opinion states:

We reverse the Court of Appeal’s holding that a certification issued by a governmental agency for purposes of the hiring tax credit under Revenue and Taxation Code section 23622.7 constitutes “prima facie proof of a worker is a ‘qualified employee,’ ” which shifts to the Franchise Tax board the “burden of demonstrating an employee is not a qualified worker for which no voucher should have issued. ” In all other respects, the Franchise Tax Board does not challenge the Court of Appeal’s judgment, and it is affirmed. Majority Opinion by Liu, J. — joined by Cantil-Sakauye, C.J., Kennard, Baxter, Werdegar, Chin, and Corrigan, JJ.

Amid Tough Business Climate, California Entrepreneurs Flourish In Part Becuase Of The Enterprise Zone

Thursday, April 5th, 2012 | Enterprise Zones, Tax News


An article in Fox Business lists all the reasons NOT to do business in California.  Yet despite all the negatives, entrepeneurs seem to flourish in the state.    One of the bright spots is undoubtedly the Enterprise Zone tax credits. “Other business ventures that benefit California’s populace may be eligible for numerous tax credits, including enterprise zone credits, economic development area credits and targeted tax area credits.”

Read the full article.

Sequoia Valley Enterprise Zone Looking to Expand by 4,800 Acres

Monday, April 2nd, 2012 | Enterprise Zones, Tax News


The Sequoia Valley Enterprise Zone, designated as such in January 2009, currently consists of 33,902 acres, and includes commercial, industrial, non-commercial and non-industrial areas, according to a Porterville Economic Development Department staff report.

The proposed expansion would increase Porterville’s boundaries by 72 parcels for a total of 143 acres. Tulare County’s enterprise zone, which includes the south county communities of Terra Bella, Tipton and Richgrove among 10 others, would be expanded by approximately 3,310 acres.

Read the full article.

Enterprise Zones the One Bright Spot in an Otherwise Tough California Business Climate

Tuesday, March 27th, 2012 | Enterprise Zones, Tax News


In a recent survey, ”almost three-fourths (73%) of California firms that do business in multiple states say it is harder doing business in the Golden State than in other states, according to the 2012 business climate survey of the California Foundation for Commerce and Education.  That finding is higher than in 2011 (57%) or in 2010 (63%). The study of 699 businesses is sponsored by the California Chamber of Commerce. No one in the 2012 survey said California is an easier place to do business.”

Respondents are “overwhelmingly unimpressed by California’s state government. Only 2% could name a state action in the past year that helped make it easier to run their business.  Among the action named were enterprise zone tax credits, worker’s compensation reform and minimum-wage increase failed.”

Read the full OC Register article.

Court of Appeal Affirms FTB’s Position Re Sales or Use Tax Credit for Current Expense Assets

Tuesday, March 13th, 2012 | Enterprise Zones, Legislation, Tax News


The Second District Court of Appeals today ruled that the enterprise zone sales and use tax credit of Revenue and Taxation Code Sec. 23612.2 is not available in connection with the purchase of current expense assets, but rather only with the purchase of capital assets.  Read the full opinion.

Assemblyman Louis Alejo Introduces Bill to Save Expiring Enterprise Zones

Friday, February 17th, 2012 | Enterprise Zones, Legislation, Tax News


Assemblyman Louis Alejo, who has been a big supporter of the EZ program over the last few years, has introduced a new bill, AB 484, to address the operation of expiring zones.   Assemblyman Alejo’s district includes Watsonville which is set to expire.  HCD has indicated that it will not be renewing expiring zones or designating new ones for now.  Alejo’s bill seeks to extend the expiring zones until new zones are designated.

Dicon Case Set For Oral Argument

Wednesday, February 1st, 2012 | Enterprise Zones, Legislation, Tax News


The California Supreme Court has scheduled oral argument in the Dicon case for Tuesday, March 6, 2012 at 9:00 a.m. in San Francisco.

Brown’s Budget Claims It Will Reform Enterprise Zone Program

Thursday, January 5th, 2012 | Enterprise Zones, Legislation, Tax News


Brown’s budget released today only hints at future reform measures to the Enterprise Zone program.  Perhaps after getting rid of RDAs, the unions are a bit gunshy about outwardly attempting getting rid of another vehicle that has anything to do with jobs while the economy struggles.  Here is what the budget said about Enterprise Zones:

“The resulting stability from a balanced budget will give businesses the certainty and the reassurance they need to invest in California. In addition, the Administration will propose legislation to reform the enterprise zone program and move to a mandatory single sales factor for apportioning multistate business income. Such changes will allow the state to afford investments in manufacturing, business incentives, and other tax relief.”

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