(August 10, 2009) The California Chamber of Commerce is urging businesses to join a coalition to protect the California enterprise zone (EZ) program, which is one of the few remaining statewide economic development incentives and has been instrumental in successfully revitalizing distressed communities all around the state.

Contact Kyla Christoffersen at kyla.christoffersen@calchamber.com as soon as possible if you would like your company to be added to the California Businesses for Enterprise Zones coalition.

Tool for Economic Recovery

The CalChamber and a growing coalition of business groups are working to promote the strength and effectiveness of the state's enterprise zone program as a tool for economic development and investment, particularly now when economic recovery is a top priority. The business community has consistently stated that the solution to California’s revenue problems will only come from robust economic growth and job creation.

Recent  Reductions

Notwithstanding its importance to the state's economy, the EZ program continues to be a target for elimination or reduction by some. Legislation introduced earlier this year which business community opposition helped to halt, proposed to gut the EZ hiring credit. Additionally, last fall, the budget package that was enacted included a provision imposing a two-year limit on the ability of businesses to use all business tax credits, including EZ credits, capping those credits at one-half of the taxpayer’s tax liability.

Helps Distressed Areas

The California EZ program was established by legislation enacted with bipartisan support in 1984 and offers a variety of tax credits and incentives to encourage businesses to locate, invest and create jobs in economically distressed communities.

The program is one of the only remaining statewide tax incentives that local areas can use to encourage businesses to stay, locate or expand within California. California’s EZ program is vital to California’s economy and economic recovery.

Effective Program

Several studies have established the EZ program’s effectiveness. Most recently, a March 2009 revision of a national study by University of Southern California researchers concluded that state and federal EZ programs “have positive, statistically significant, impacts on local labor markets in terms of the unemployment rate, the poverty rate, the fraction with wage and salary income and employment.”

More information is available at www.calchamber.com/EZ.

Action Needed

Contact Kyla Christoffersen at kyla.christoffersen@calchamber.com as soon as possible if you would like your company to join the California Businesses for Enterprise Zones coalition.

Staff Contact: Kyla Christoffersen