Enterprise Zone Program

Program Description

The Enterprise Zone Program at HCD has been responsible for the designation and administrative oversight of the 42 Enterprise Zones authorized by the state legislature. Targeting economically distressed areas throughout California, the program provided special incentives designed to encourage business investment and promote the creation of new jobs. The purpose of the program was to stimulate economic development by providing tax incentives to businesses enabling private sector market forces to revive the local economy.  Each Enterprise Zone is administered by its local jurisdiction working with local agencies and business groups to promote economic growth through business expansion, attraction and retention, while providing an environment to nurture business creation as well.


The End of the Program

The recent signings of AB93 and SB90 resulted in the repeal of the Enterprise Zone Act and an end to the program on December 31, 2013.  Subsequently, new legislation was passed which allows Zones to issue vouchers during 2014 for eligible hires made prior to 12/31/2013. 
On November 5, 2013 HCD hosted a roundtable discussion with enterprise zone managers and other stakeholders to explore the issues involving the operation of the zones throughout the next year.  Although no decisions were made or policies enacted, the session was productive in revealing some of the operational issues which must be addressed by local zones and HCD to ensure an orderly program wrap-up.  A synopsis of the topics discussed is provided in this update.


latest updates!

As local Enterprise Zones begin to wind down their activities during the 2014 year, HCD will continue to administer the program in accordance with the regulations pertaining to vouchering, which are still in effect. HCD is helping to facilitate the "wind down" by working with local zones to post the most up to date information available on our webpage. This new section of the website can be accessed by the banner on the HCD home page or through a link on this Enterprise Zone Program page. The most recent changes to the website include: