Gov. Brown Proposes New Changes to California Enterprise Zone Program


California Gov, Jerry Brown recently issued his revised budget proposal. In his proposal, Gov. Brown once again targeted the Enterprise Zone program. However, rather than proposing to eliminate the program in its entirety, the governor has chosen to substantially restrict most of its benefits, including eliminating benefits retroactively.

The two most significant benefits of the Enterprise Zone program are the hiring credit and the sales and use tax credit (EZ Credits). The hiring credit is a credit available to taxpayers who hire certain qualified employees to work within an Enterprise Zone area. The sales and use tax credit is a credit for sales tax paid on purchases of machinery and machinery parts used to fabricate or manufacture a product that is used in an Enterprise Zone area. Each of these credits rewards taxpayers who invest in economically depressed areas. However, the governor's proposal would substantially limit these benefits.

Gov. Brown's revised proposal, if adopted, would change the Enterprise Zone program as follows...

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.