California Enterprise Zone Update – Governor Brown’s May Revision
Last week Governor Brown released the May revision budget proposal, which recommends the
elimination of the California Enterprise Zone (EZ) program. Limited details
have been released regarding this proposal. However, we do know the governor has proposed
to replace the current EZ program with the following three programs:
1. Sales tax exemption for manufacturing and biotech research and development equipment purchases
2. Hiring credit of $3,000 available to small businesses to focus only on hiring long-term unemployed
workers, unemployed veterans, and people receiving public assistance
3. Competes and Recruitment Retention Fund, businesses would compete for hiring credits and other
incentives for locating or expanding businesses or retraining workers
Assembly Revenue and Taxation Committee Chair Raul Bocanegra,
along with Assembly Members Jose Medina and V.M. Perez, current and former chairs
of the Jobs, Economic Development, and the Economy Committee feel reform of the EZ
program is necessary and the program must be maintained. The three Assembly
members said they will have a formal proposal on EZ reform soon.
This is Brown’s second attempt after proposing to eliminate
the Enterprise Zone program entirely in 2010. After strong grassroots efforts the
program was preserved and remained intact with no changes. Once again, we must
be vigilant and do our part to maintain the program. Our goal is to support
reform of the program as needed.
Equifax Workforce Solutions will continue to update you
on any EZ program updates or changes.
This weblog is sponsored by TALX.