Posts Tagged ‘Enterprise Zone Tax Credits’
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.
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.
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.
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.”
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.
Wednesday, January 4th, 2012 | Enterprise Zones, Tax News
Here is the FTB’s Tax News for January.
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.
Wednesday, August 24th, 2011 | Enterprise Zones, Tax News
In today’s Daily Journal:
A bill intended to close a loophole in existing law that lets companies relocate to another city within the state to gain lucrative tax credits failed to pass out of a legislative committee yesterday.
Assembly Bill 1278, authored by Assemblyman Jerry Hill, D-San Mateo, was inspired by a company, VWR International, that is ditching Brisbane to relocate to an enterprise zone in the city of Visalia.
But Hill failed to get the four votes needed to move the bill past the committee stage.
“The bill was not supported by the chair. I thought I could do it now and was looking for one Republican to support it,” Hill said.
The state Assembly Committee on Jobs, Economic Development, and the Economy is chaired by Manuel Perez, D-Coachella. Perez’s Assembly District includes Imperial County, which officially opposed Hill’s legislation.
Perez’s 80th Assembly District covers all of Imperial County and parts of Riverside County and the area’s high jobless figures prompted him to vote against Hill’s bill.
“Coming from a community with unemployment over 20 percent and that has historically suffered from a lack of private investment and jobs, I’m always concerned about the impacts of business closures on families and communities. My vote today does not reflect my lack of concern about this issue but rather the importance of pushing for a broader enterprise zone reform agenda,” Perez wrote to the Daily Journal in an email.
AB 1278 represented a piecemeal approach, which Perez believes would undermine efforts to reform the enterprise zone program.
“I initiated the reform conversation more than a year ago and the negotiation includes a number of issues such as business relocation and the tighter targeting of business incentives. Some of the reform proposals are in my bills, AB 231 and AB 1411. I hope my actions today will induce labor and business to come back to the table,” he continued in the email.
Thursday, July 21st, 2011 | Enterprise Zones, Tax News
From today’s Highland Community News:
The San Bernardino Valley Enterprise Zone (SBVEZ) announced the businesses utilizing the zone have filed more than 2,000 hiring tax credit vouchers since Jan. 2011. The number of vouchers filed this year will soon exceed the total number of vouchers filed in 2010, in just half the time.
Last year, approximately 2,300 vouchers were filed by 182 businesses. This year more than 145 businesses have already taken advantage of the incentive. The zone has seen a significant jump in activity from businesses, suggesting that number of vouchers filed in 2011 will double the number filed last year.
“Each year we seem to double the number of vouchers filed from the previous year, and having already reached 2,000 vouchers is a good sign we will do it again this year,” said Wendy Clements, SBVEZ zone manager. “The continued growth of the program locally shows that our efforts to educate employers about the zone are paying off.”
The hiring tax credit is the most commonly used program incentive, which grants employers a tax deduction for providing a job to a local disadvantaged worker who faces barriers to employment. Common barriers include long-periods of unemployment, receipt of public assistance, lack of skills and education, and having a disability or a criminal history.
The 2,000 vouchers filed so far this year are estimated to produce $75 million in tax savings for these businesses during the five-year period they can claim the credit for a single employee. Reports also show that these cost savings have contributed to the creation of 14 new jobs and the retention of 1,998 existing jobs in the zone.
Designated in 2006, the SBVEZ includes the city of Colton, city of San Bernardino and unincorporated portions of San Bernardino County.
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.”