As many of you already know, the Enterprise Zone Program has been eliminated as of 12/31/13 via Assembly bill 93 - as proposed by Governor Jerry Brown and passed by the California Assembly.
For the last 21 years since its establishment in 1992, the Coachella Valley Enterprise Zone stimulated local economy providing tax breaks and other financial incentives to businesses located in the 56 square miles including parts of Thousand Palms, Indio, Coachella, Thermal and Mecca.
While the bill eliminates the program as of 12/31/13, it will not immediately cease the benefits already accumulated by enterprise zone businesses. Qualified employees hired prior to January 1, 2014 will continue to generate tax credits on wages paid up to 5 years after that date. Furthermore, Hiring and Sales Tax credits accumulated by 12/31/13 can be carried forward and used within next 10 years.
"We are encouraging businesses to file their voucher applications with CVEZA ASAP, as the voucher fee is increasing to $75 in January", said CVEZA Manager Mark Weber. With assembly bill 93 and SB 90, the Governor's Office of Business and Economic Development aims at establishing California entirely as a business-friendly state, promoting a set of incentives similar to those offered by the Enterprise Zone program: Sales and Use Tax exemption on purchases of manufacturing equipment up to $200 million annually, New Employment credits and "California Competes" credits.
Osborne Rincon, CPA's is working with many businesses within the current Coachella Valley Enterprise Zone to utilize their credits and reduce their tax liability. We provide expertise on employee vouchering and utilizing those credits within the company's income tax filings.
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