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Enterprise Zone Program
Capitalizing on a Community's Resources
The Enterprise Zone Program is responsible for designating California's 42 Enterprise Zones authorized by the state legislature. The program targets economically distressed areas throughout California, providing special incentives designed to encourage business investment and promote the creation of new jobs. The purpose of the program is to stimulate development by providing tax incentives to businesses and allow private sector market forces to revive the local economy. Each Enterprise Zone is administered by it's local jurisdiction working with local agencies and business groups to promote economic growth through business attraction, expansion and retention.
latest updates!
The following are the latest communications from the Department of Housing and Community Development on the Enterprise Zone Program and other updates to the website:
- Enterprise Zone Listening Sessions – (Adobe PDF)
- Map of CA Enterprise Zones — (Adobe PDF)
- Directory of Zone Contacts — (Adobe PDF)
- Recent Management Memoranda:
- Number 11-01: Voucher Numbers – 2011 Allocations — (Adobe PDF)
- Number 10-04: Biennial Reports — (Adobe PDF)
- Number 10-03: Notice of New Hiring Credit Voucher Application Fees — (Adobe PDF)
Tax Benefits
Enterprise Zone companies are eligible for substantial tax credits and benefits including:- Hiring Credits - Firms can earn $37,440 or more in state tax credits for each qualified employee hired;
- Up to 100% Net Operating Loss (NOL) carry-forward. NOL may be carried forward 15 years (suspended for tax years 2002 and 2003);
- Corporations can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts;
- Up-front expensing of certain depreciable property. Lenders to Zone businesses may receive a net interest deduction;
- Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment;
- Enterprise Zone companies can earn preference points on state contracts.
Business Eligibility
Businesses located at qualified addresses in an Enterprise Zone are eligible for program benefits which include several state and local incentives. There are 42 Enterprise Zones located throughout California, each administered locally. For a complete listing of all active Enterprise Zones and other Economic Development Areas, please see the "Directory of Economic Development Areas" accessable by clicking the "Contacts" link above. The latest map of California's Enterprise Zones can be accessed in the "Whats New" section above.