With the current economic conditions, companies that are commissioned with local economic development are planning to utilize California’s Enterprise Program to attract new businesses.  Redding.com has reported the following:

With the recession forcing many companies to put expansion plans on hold, the EDC is focusing more on business retention, O’Sullivan said, promoting the Shasta Metro Enterprise Zone, which gives hiring credits to businesses.

In the past year, the enterprise zone has grown from about 800 credited employees to 1,300 credited employees, accounting for $13.5 million in hiring credits to companies, O’Sullivan said.

The Calexico region is beginning to get national coverage in its push for economic development.  And taking the forefront of the city’s efforts is the California Enterprise Zone program.  The New York Times reported this past week:

“Other new commercial developments are also on the drawing board in Calexico, said Danny Fitzgerald, director of the city’s enterprise zone. Projects under way include Calexico Mega Park, a 157-acre mixed-use retail, business and residential development by Westmount Properties; Calexico 111 Center, with more than 65 acres of commercial and 58 acres of industrial development; and Los Legos, some 500 acres that will include residential and commercial components.”

This national exposure for the EZ program benefits continues to reveal the importance of these tax benefits.

The competition for new Enterprise Zones is heating up this year, and one of the cities still waiting to hear about its approval is Needles, CA.

And the Needles Desert Star is reporting the wait is not over, “The city of Needles will have to wait a little longer to find out if it has been awarded enterprise zone status. The announcement, expected on May 18, has been delayed until some time in June. California Department of Housing and Community Development has informed the city that winners have not yet been selected.”

With only four enterprise zones being designated this year, 14 new city applicants will go without the coveted program benefits.  The city is pushing for the designation in order to augment its current strategy to attract new businesses to the region.

On June 10th, over 150 businesses from across Sacramento will be meeting together to consider the current economic status of the region, and the Enterprise Zone program will be one of the top issues discussed.  Along with the Enterprise Zone Program, OBSNews.com says that these civic leaders will also be considering:

· Support for growth of Sacramento’s clean energy sector,
· Protection of local government redevelopment funds,
· Improvement of airport safety from wildlife strikes,
· Passage of bills that support energy efficiency and renewable energy improvements,
· Support of changes to HR 1 to safeguard regional economic benefits of tourism and impacts on rural, economic development
· Support of many bills and measures to improve the region’s flood protection and safety, and
· Support of education and job readiness program for foster youth.

Yuba City has been working hard on developing the city into an economic haven for businesses throughout the state.  And it looks like the region’s enterprise zone is going to be at the forefront of its efforts.  Darin Gale as the city’s economic development manager had quite a bit to say about the work being done to make the city ever-increasingly more attractive to businesses.

Ashley Gebb, from the AppealDemocrat.com wrote, “Gale has already outlined quarterly goals to work on enterprise zone awareness, filling vacant commercial properties and making the city more attractive to development by cleaning up its corridors through construction and city ordinances.

A more intensified, concentrated approach can only benefit the city, Maan said.”

“We’ve always ranked at the bottom as far as unemployment goes,” he said. “It’s time we start figuring out what we can do to bring decent paying jobs to the area.”

As the State of California’s economy continues through the recession, the California Enterprise Zone program offers local businesses a great opportunity to save money and reap sizable tax benefits.  In another great demonstration of the power of the EZ program, EDC President Greg O’Sullivan thinks Shasta County can grow its economic job base, despite Sacramento.

With the recession forcing many companies to put expansion plans on hold, the EDC is focusing more on business retention, O’Sullivan said, promoting the Shasta Metro Enterprise Zone, which gives hiring credits to businesses.

In the past year, the enterprise zone has grown from about 800 credited employees to 1,300 credited employees, accounting for $13.5 million in hiring credits to companies, O’Sullivan said.

This is another great example of the potential of the EZ program, if you have a business that resides in an Enterprise Zone, contact us directly to see what benefits you are entitled to.

Click here for the Board of Equalizations June 2009 tax bulletin.

Centrally located, Fresno is the financial, industrial, trade, and commercial capital in the Central San Joaquin Valley. This dynamic city is the hub of a region rich in heritage, resources, and people. The home for a diverse mixture of industries, businesses, agencies and institutions, Fresno offers an ideal location and the tools you need to build a successful business.

Businesses in the zone – from large manufacturing companies to small neighborhood restaurants – can significantly reduce their state income taxes by taking advantage of special California Enterprise Zone tax benefits.

Located within the Fresno Enterprise Zone borders are affordable manufacturing and commercial sites, as well as unique retail locations.  The zone is within immediate access of two freeways, two state highways, the Fresno Yosemite International Airport and the Downtown Chandler Airport.  It is also in close proximity to a wide range of educational facilities, housing and other amenities.  These assets add up to an increasingly powerful ability to assist current businesses and attract new companies, jobs and investments.

A business located within the Enterprise Zone can receive tax credits each time it hires an eligible employee or purchases qualified new machinery, equipment or pollution control devices.  Incentives are also available to many employees who work in the zone and lenders who make loans to qualified businesses.  Most businesses in the Enterprise Zone are automatically eligible for benefits.  There is no certification process.

There is a bill being pushed through the California State Assembly that is taking aim at one of the State’s largest enterprise zones.  In it’s current state, the bill would alter the current enterprise zones while eliminating several key regions.  Considering the ramifications of this bill passing, it has met with heavy conflict, especially with the current job market and nationwide recession.

“Let’s be very clear, this isn’t a reform bill. It’s an enterprise zone killer, and would cost California thousands of jobs,” said Craig Johnson, president of the California Association of Enterprise Zones and manager of the Long Beach enterprise zone. He testified against the measure at a recent hearing in Sacramento.

California Assemblyman Bob Dutton of Rancho Cucamonga is proposing a new bill for personal income and corporate tax credits (SB 508) for hiring CalWORKS recipients, parolees, veterans or persons receiving unemployment benefits.  The provisions of this bill track the Federal Work Opportunity Tax Credit (WOTC) and would supplement the current California Enterprise Zone Tax Credit Program.