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


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.


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