Enterprise Zone Bill Waiting for Governor’s Signature 7/11/13 UPDATE: BILL SIGNED

by

The Senate and State Assembly have passed AB 93, which makes major changes to the Enterprise Zone program.  The bill is now awaiting the Governor’s signature.  The Governor has been a supporter of the changes to the Enterprise Zone program, so his signature is essentially guaranteed.  UPDATE: ON JULY 11, 2013, AS EXPECTED, GOVERNOR BROWN SIGNED SB 90 AND AB 93.

The bill eliminates the current Enterprise Zone Hiring Credit for employees hired on or after January 1, 2014. Employees hired and vouchered prior to January 1, 2014 will continue generating credit for their first 60 months of employment. The bill gives taxpayers a 10-year carryforward period to use these credits.

The bill also provides a new sales and use tax exemption for manufacturing equipment beginning in 2014. This benefit will apply for tax years through July 1, 2019 (2021 for taxpayers in certain areas).

A new credit will be available for taxable years beginning on or after January 1, 2014, and ending before January 1, 2021. The new credit applies to fewer employees than the current credit, and certain industries are specifically excluded.

Nienow & Tierney, LLP will continue to keep you updated on the status of AB 93 and other tax laws affecting you and your business.  If you have any questions, please contact our office at (714) 836-8300.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: