It has happened! The enterprise-zone elimination bill has passed the California Assembly and now goes to Governor Jerry Brown, who will most assuredly sign it into law. As I explained in my most recent post, this bill ends the enterprise zone program as of December 31, 2013.
If you are an enterprise zone business owner, however, you need to understand that this legislation allows you to continue generating tax credit on the wages paid to qualifying employees hired before January 1, 2014. These employees may continue to generate tax credit for up to 5 years if they remain employed in the (now former) enterprise zone. Also, you will have up to 10 year to utilize all the credit that already has been (or yet will be) generated under this process.
Now is the time for all enterprise zone businesses to take their last deep breath of enterprise-zone benefits. Maximize your 2013 employee qualifications. Generate as much tax-credit carryover as possible. And prepare to pay much higher taxes when all of your carryover tax credits are finally used up – possibly as long as 5 to 10 years from now.
Sadly, this is now also the time for all the tax credit consultants out there, who have specialized in CA enterprise zone services, to hone their resumes and begin putting their contingency plans into operation.
My clients can be assured that we’re working to maximize their benefits into the foreseeable future. We will be here to support them in the way they have grown accustomed to expect.
Read more in the Merded-Sun Star (more…)
The California Senate voted last night to approve Democrat Governor Jerry Brown’s legislation that will eliminate the state’s 29-year old enterprise zone program. While only 27 votes were required, Assembly Bill 93 passed 30 to 9 in favor, with 3 of 11 Republicans joining with Democrats. (There are 40 seats in the California Senate, one of which is currently vacant.) (more…)
California Governor Jerry Brown’s proposals to eliminate and replace the state’s enterprise zone program did not make it into the budget bill, which is scheduled for a vote on Friday, June 14th. Legislative leaders made it clear earlier this week that they did not have the number of votes required to pass the enterprise zone legislation. (more…)
We’ve grown accustomed to California’s Governor and Democrat-controlled legislature’s attempts to curtail the state’s enterprise zone program. Governor Brown’s 2010 budget proposal included provisions to completely eliminate the program. Such attempts have consistently failed in the past, while supporters of the program have furthered their own efforts to make the program more effective and accountable. (more…)
The Porterville City Council voted on Tuesday to join other stakehoders of California’s Sequoia Valley Enterprise Zone in seeking an expansion of the area’s econcomic development area. Read about it in today’s article by Denise Madrid in the Porterville Recorder. (more…)
It’s January 2, 2012 and so far, not a peep from the Governor’s office about destroying California’s best tax incentive program. So far, so good. Last year at this time, California was holding its breath in anticipation of Governor Jerry Brown’s 2011 budget proposal. Rumors had been leaked that the Governor’s budget would propose the elimination of the state’s Enterprise Zone program. (more…)
Denise Madrid of The Porterville Recorder summarized a provocative situation faced by up to nine “conditionally” designated California enterprise zones. Govern Jerry Brown’s office had directed California’s Department of Housing and Community Development (HCD), the bureaucracy that oversees the state’s EZ program, to drive with its brakes on.
Conditional-designation status is a normal phase in the lifespan of every new enterprise zone. Nine of the state’s 42 legally designated enterprise zones remain in limbo, however, as HCD delays action required to finalize their status. (more…)