H&A released a new briefing paper on the recent legislation signed by Governor Jerry Brown completely overhauling the State of California’s manufacturing and job growth economic development incentives, which effectively eliminated their Enterprise Zone (EZ) program.
Below are highlights of the new legislation included in the latest H&A briefing paper.
- Enterprise Zone Phase-Out: Cut-off January 2014, then benefits can be in place for up to 10 years.
- Discretionary Incentive Credit: Beginning in January 2014, a new, competitive incentive tax credit based on number of new jobs, location and capital investment.
- Hiring Credit: Revises tax credit for net new jobs to a maximum of $56,000 per employee at 35% of wages annually.
- Equipment Sales Tax Exemption: Beginning in July 2014, qualifying businesses may claim a sales tax exemption on certain eligible manufacturing and R&D equipment.
To review the new H&A briefing paper on the recent California economic development incentives
legislation, please click on the following link: H&A Briefing Paper: New California Incentive Program.