45-125 Smurr Street, Ste. A
Indio, CA 92201
A new state law (AB106) was signed by Governor Brown on September 26, 2013 which allows Enterprise Zones to continue accepting and processing Hiring Credit voucher applications until December 31, 2014. Businesses may continue to submit applications for qualified employees hired on or prior to December 31, 2013.
Has the Enterprise Zone Program, and its five state tax incentives, been eliminated?
Yes, effective December 31, 2013, AB93 and SB90 eliminated all five Enterprise Zone state tax credits. Enterprise Zone businesses have until December 31, 2013 to take advantage of these tax credits. Will I be able to submit applications for the Hiring Credit Program? Yes, currently businesses have until December 31, 2014 to submit hiring credit applications for any qualified employees hired in 2013 or prior. But it would be wise to submit applications as soon as possible to ensure they will be processed before the program closes for good.
What about Targeted Employment Areas (TEAs)?
On July 8, 2013, the Department of Housing and Community Development approved new TEA census tracts for the Coachella Valley Enterprise Zone. The effective date is retroactive to January 1, 2013. Both the new and previous TEA street ranges can be accessed via the links to the left.
What happens to the State tax credits my company has earned after December 31, 2013?
Enterprise Zone businesses are no longer able to carry forward any earned credits until exhausted. Instead, Enterprise Zone businesses are only able to carry forward the credits up to 10 years from the date the credits are earned.
I heard that the State created another set of tax credit programs that will begin on January 1, 2014, what are they?
With the passage of SB 90 and AB 93, also known as the Governor's Economic Development Initiative (GEDI), the Enterprise Zone program was replaced with the GEDI three new tools for economic development in California. Those tools include a targeted new hire credit, a sales and use tax exemption for manufacturing and R&D equipment purchases, and a new flexible tax credit for business attraction and expansion called "California Competes." For more information, please visit www.ftb.ca.gov/businesses/Economic_Development_Incentives/.