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Posts Tagged ‘Enterprise Zone Program’

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.

Governor Brown To Release His Budget Today

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


From the Sacramento Bee:

Gov. Jerry Brown will release his budget today at 2:30 p.m. after his administration mistakenly posted the document on the Department of Finance website.
The projected budget deficit is $9.2 billion through June 2013, according to sources who have seen the document.
The Democratic governor was scheduled to release the budget on Tuesday and dismissed reporters’ questions this morning about his plan, saying he wanted to be sure the media would show up for next week’s release.
The budget announcement will be streamed online live at his website.

Start Your Engines

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


Let the games begin.  Speaker Perez spoke out about the redevelopment case and what it means to Enterprise Zones.

“A second look will also no doubt be taken at the issue of local economic development in the wake of the California Supreme Court ruling that abolishes more than 400 local redevelopment agencies next month. Speaker Perez dismissed any notion that actual RDAs will be recreated by the Legislature; instead, he emphasized the need for ways to promote job creation and economic stimulus that doesn’t favor one region over another. And he suggested that the scrapping of RDAs could reignite his the effort of many Democrats to revise the state’s enterprise zone program.”

Read the full article.

Knitwear Company Spearheads Hope For New Ventures

Wednesday, January 4th, 2012 | Enterprise Zones, Featured Zone, Tax News


Tala Enterprise, a clothing maker that idled its denim line in China to bring its production back to the United States, officially opened a new knitwear manufacturing plant in the Coachella Valley Enterprise Zone.

“Assemblyman V. Manuel Pérez noted that the plant’s opening in the Coachella Valley Enterprise Zone comes at a critical time when California has frequently been labeled as unfriendly to business.

The very existence of this new business illustrates the importance of the state’s enterprise zones, which provide companies extra benefits to open, the Coachella Democrat said.”

Read the full article.

Wounded Warriors WOTC

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


The 2011 Heroes Act expands the WOTC to include:

  • Employers that hire veterans who have been looking for employment for more than six months may be eligible for a Returning Heroes Tax Credit of up to $5,600 per employee; employers that hire veterans who have been looking for employment for less than six months may be eligible for a credit of up to $2,400 per employee.
  • Employers that hire veterans with service-connected disabilities who have been looking for employment for more than six months may be eligible for a Wounded Warriors Tax Credit of up to $9,600 per employee.

 The credits apply to individuals who begin work after November 21, 2011 and on or before December 31, 2012. Keep in mind that the Heroes Act does not extend WOTC’s current December 31, 2011 sunset date for all other potentially elilgible WOTC participaants.

HCD Alert!

Tuesday, October 11th, 2011 | Enterprise Zones, Legislation, Tax News

Today the HCD issued this press release regarding implementation of new policies, including a moratorium on new zones.  The stated aim of the new policy memorandum is to make the EZ more accountable, efficient and consistent with the Governor’s May budget revise, i.e. a push by the unions to undercut the EZ program from within.  The legal analysis is beginning on the HCD’s claim that the law allows for “up to” 42 zones which if read in the correct light, means phasing out the program.   Read the memo here.

Governor Brown and Democratic Leaders Announce Majority Vote Budget Deal

Monday, June 27th, 2011 | Enterprise Zones, Tax News

The key words are “majority vote” which mean that Brown was unable to garner the two thirds vote necessary to eliminate or “reform” the EZ program out of existence.  The following is from the Sacramento Bee:

Gov. Jerry Brown and Democratic legislative leaders announced today that they have reached an agreement on a new majority-vote budget plan.

“We’ve had some tough discussions, but I can tell you that the Democrats in both the Senate and the Assembly have now joined with the administration and myself and we have a very good plan going forward with the budget,” Brown said at a press conference in his office this afternoon.

The proposal, outlined in this post, assumes that the state will bring in an additional $4 billion in revenues in the upcoming fiscal year, based in part on higher-than-expected revenue figures in recent months. If those revenues fail to materialize, steeper cuts to programs including K-12 schools, higher education, public safety programs and In-Home Supportive Services would occur later in the year.

“We have severe trigger cuts that will be triggered and go into effect (without the projected revenues),” Brown said. “And those are real.”

Don’t Mess With (or Learn From) Texas

Monday, June 27th, 2011 | Enterprise Zones, Tax News


The California Legislature’s zeal for job creation is, shall we say, less than stellar.  The consequences are obvious.  They are also highlighted in this Sacramento Bee piece from Sunday.

Texas’ unemployment rate was 8 percent, two-thirds of California’s jobless rate, and its seasonally adjusted year-to-year job growth was a robust 2 percent (2.7 percent in private employment).

“We’ve added 92,300 jobs in Texas so far in 2011,” said TWC Commissioner Ronny Congleton. “That is a trend that we hope to continue until all Texans have good jobs earning good wages.”

Texas had fewer than a million unemployed workers in May while California had more than 2 million. Texas’ jobless rate was under the national average, while California’s was the second highest in the nation. Texas has accounted for nearly half of the nation’s job creation since 2009.

“Growth in the Texas economy is gaining steam,” says a recent analysis by the Federal Reserve Bank of Dallas. Clearly, Texas and other states are emerging from recession while California’s recovery, if it exists, is decidedly weak, as several new economic reports note.

It means that millions of jobless workers and their families struggle to keep roofs over their heads and food on their tables.

It means that the state is paying out $600 million a month in unemployment insurance and its jobless benefit fund is already $11 billion in the red.

It means that state and local officials struggle with budget deficits and are slashing education, social and health services, police and fire protection.

California politicians are very defensive – even dismissive – about comparisons with Texas, but the economic differentials between the two states are too stark to ignore.

However they deal with the deficit-ridden state budget in the short term, Gov. Jerry Brown and legislators should move economic competitiveness to the top of their agenda.

Enterprise Zone supporters have long made the claim that the EZ program lowers the amount of unemployment claims the state has to pay by far more than the Program pays out.  California legislators can pay heed, or they can continue to ignore those states that do….and the consequences will be again be obvious. 

The Governor’s Proposed Enterprise Zone Reforms “are just another billion-dollar tax increase on businesses.”

Thursday, June 2nd, 2011 | Enterprise Zones, Tax News


So says Republican Assemblyman Allan Mansoor.  He calls the governor’s proposal to eliminate Enterprise Zones a breach of contract. 

Read his letter.

Governor’s May Revise Leaves Enterprise Zones Intact

Monday, May 16th, 2011 | Enterprise Zones, Tax News

According to the LA Times on Saturday, Brown’s May budget revise leaves the EZs intact:

The governor would use an unexpected multibillion-dollar influx of tax receipts to fill the gap left in his budget by the shorter period of income tax increases. He would also use the new money to keep in place “enterprise zone” tax credits for businesses that hire workers from blighted areas. Brown originally proposed eliminating those tax credits to save the state $924 million.

Just waiting for the official word today at 11.

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