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Enterprise Zone

Recent Legislation (AB 93) was passed eliminating Enterprise Zones in California.   This bill eliminates the State Enterprise Zone Program, effective the end of this year (January 1, 2014).

 

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Hiring Tax Credit

  1. If you have already hired an employee and obtained a voucher certificate, you may continue to accrue tax credits for that employee (even after the end of this year if they continue to work for you.)  The tax credits will continue to carry forward for up to 10 years from the end of this year.
  2. If you have hired an employee and have not yet obtained a voucher certificate, you should do so immediately.  Governor Brown signed Assembly Bill 106 (AB106) into law, which extends the deadline for businesses to submit hiring tax credit voucher applications to December 31, 2014.  The provision ensures businesses that hire qualified new employees through the end of 2013 will have another year to file for the hiring credit.
  3. If you are thinking of hiring new employees and would like to take advantage of the credit, it is not too late.  Any employees hired before the end of 2014 are still eligible. Please contact the San Joaquin County Enterprise Zone (SJCEZ) or Worknet immediately if interested in hiring an employee before the end of the year.  They can help make sure that you complete the hiring process and the necessary paperwork in time to claim the credit going forward. 

For information on Hiring Tax Credits through the soon-to-expire Enterprise Zone, contact San Joaquin County Enterprise Zone (listed below under External Links.)

 

Governor's Economic Development Initiative (GEDI)

GEDI, established under the Governor's Office of Business and Economic Development (GO-Biz) was developed to replace the California Enterprise Zone program which will end on December 31, 2014.  GEDI offers three incentive programs to help business locate or expand in California. 

The three programs under the Governor's initiative are the following:

  • California Competes:  Program which provides income tax credits  to businesses that want to locate or expand in California.  The tax credits will be negotiated by GO-BIZ and approved by a newly created California Competes Tax Credit Committee.
  • Manufacturing Equipment Sales & Use Tax Exemption:  Sales tax exemption which eliminates California portion of sales tax (4.19%) at time of purchase program and administered by the California Board of Equalization.
  • New Employment Credit:  Tax Credit on a new employees wages above $12 an hour and up to $28 an hour and administered by the California Franchise Tax Board. 

 

External Links


San Joaquin County Enterprise Zone

San Joaquin WorkNet

GO-Biz

California Board of Equalization

California Franchise Tax Board

This City of Stockton web page last reviewed on --- 9/4/2014