California Enterprise Zones Under Attack
January 10, 2011
California budget: Brown to seek deep cuts, tax-hike extensions – latimes.com.
Due to California’s poor budget situation, the California Enterprise Zone is continuing to receive calls to change or eliminate the benefits received by businesses. Outgoing Governor Arnold Schwarzanegger was a strong supporter of the program creating many new zones during his term. However, with the newly elected Governor Jerry Brown coming into office, new one has a clear understanding of what his position will be on the program. According to an article by the LA Times, the Brown Budget will be target Enterprise Zones. However, there is no clear indication on how (and if) the program will be changed. The benefits of the program could possibly be reduced or even eliminated.
Our advise to businesses who operate in Enterprise Zone is to move forward immediately to capture and maximize any available benefits. Otherwise they take the risk of missing out on these benefits altogether. The California Enterprise Zone Credits can be quite powerful since they have an unlimited carryover period – under current law they do not expire.
