California Enterprise Zone News

NEEDLES - Needles may still be in the running for an enterprise zone. The Needles Chamber of Commerce received a phone call on Sept. 1 from the chamber of commerce in Anaheim that sparked new hope for community efforts to obtain the coveted status.

Anaheim and Needles were among 10 applicants which were not granted enterprise zone designations this year and it appeared chances were slim of either ever being chosen over the next several years as fewer slots would become available. Needles ranked 12th out of the 15 applicants, Anaheim was 14th.

In descending rank order, the five new zones for 2009, which were announced on Aug. 19, are Hesperia, Tulare, Pittsburg, Sacramento and Taft. State legislation has limited the number of enterprise zones existing at any given time to 42.

Enterprise zones allow distressed and disadvantaged cities to compete by offering tax incentives to businesses, among other perquisites, which in turn are supposed to stimulate the local economy by providing job opportunities and increased local revenue. Zones are granted for a 15-year period.

According to Sue Godnick, executive director of the Needles Chamber, Anaheim has invited the city to join a group effort proposing state legislation that will allow those cities not ranking high enough this year, plus an additional zone for an auto plant in Fremont, to be granted one-time enterprise zone statuses. The initiative is to be titled “100,000 New Jobs for Californians (11 New Enterprise Zones).”

On Sept. 8, Needles City Council approved submitting a letter of support along with others from the newly-formed coalition of chambers of commerce.

The initiative is expected to be introduced during the next special session of the legislature. The process may take from two to four months, reported Chuck Chisholm, member of the Needles enterprise zone application committee.

Brad Hoover, another committee member, will be gathering letters from five companies who have expressed an interest in locating in Needles if an enterprise zone is obtained, Godnick reported.

from the needles desert star

The Renewal Community and Empowerment Zone (RC/EZ) programs are scheduled to expire at the end of 2009. However, in his unwavering efforts to seize the opportunities to create and save jobs through federal programs, such as the RC/EZ programs, President Obama requested in his Fiscal Year 2010 budget that Congress act to extend the RC and EZ designations to December 31, 2010. Extending the designations would allow tax relief to remain available to the 300,000 businesses located in the distressed RC/EZ areas, thereby helping create or retain jobs in high poverty areas, in an environment where the unemployment rate is the highest it has been in 25 years.

It is critically important to extend the provisions immediately rather than allow the RC and EZ designations and the related tax incentives to lapse. Extending retroactively would cause a drop in utilization.

Nationwide, the benefits that derive from the $11 billion tax incentive package are clear. In this regard, the most widely utilized of the Community Renewal tax incentives is the employment credit, which provides federal tax benefits to local businesses for employing residents from the designated areas. Recent years have shown a steady upward trend in utilization of this incentive. This has led to substantial increases in business development and job creation.

Based on the latest data from the Internal Revenue Service, HUD estimates that approximately 480,000 jobs for RC and EZ residents generated over $2 billion worth of employment credits for eligible employers throughout the country in 2007-2008. Businesses have also utilized a related incentive for hiring high risk youth and providing summer jobs to teens residing in RC and EZ communities, which are two categories tied to the RC and EZ designations under the Work Opportunity Tax Credit.

Please visit our website at www.amtcg.com for more details on the California Enterprise Zone.

You will be able to contact us directly from our website.

Enterprise Zone Pays Off For Business Owners

Employers get tax breaks for hiring people who live in certain areas.

Jeff St. John
The Fresno Bee

Originally published 2008-07-06

In these times of economic slowdown, Dan and Jennifer Gonzalez say their decision to move their business into an enterprise zone has paid off.

The co-owners of Custom Wood Products in Parlier took advantage of the state program to accelerate depreciation on their new building, putting the money they saved on taxes back into their business.

And by hiring employees who live within the zone, which was recently expanded to include almost all the cities in Fresno County, they’ve been able to capture further tax breaks that have “allowed us to improve our cash flow, while a lot of our competitors are struggling right now,” Dan Gonzalez said. (Custom Wood Products, Fresno County)

“This is an incredible incentive,”

“It allows businesses that are here to be more profitable, to expand, to buy new equipment and reinvest, and to hire people — that’s a key.” (Economic Development Corp.)

ATG Client References

“After working with ATG we are pleased with the work they have performed. They have done an excellent job helping our company save money. The ATG staffs are diligent as well as easy to work with. I would encourage anyone looking to save money for their organization to take this opportunity to work with American Tax-credits Group.”

(Scott Fahrney, Farney Automotive group, Fresno County)

“ATG helped me save thousands of dollars in taxes over the past years. Since I have been working with ATG, they have eliminated my state income taxes year after year.

Since then I have been able to grow my Institution and increase my cash flow.”

(Mr. Gee~Director, Business Communications Institute, Los Angeles)

“I’m very grateful to have met ATG for their services. They are quick, diligent, and professional. Not only have they been able to help my practice but they have helped many of my friends and colleagues as well. I encourage the good news and for anyone that qualifies to be in the enterprise zone to work with ATG”.

(Dr. Rick S. Aaronian, Fresno)

“When I had questions about my business being in the Enterprise Zone, ATG was able to explain it to me and told me that if they weren’t able to save me on my state income tax, I would not owe them anything. I was shocked to see how much they were able to save me at such a minimal fee. I’m glad I got into contact with American Tax-credits Group.”

(Mr. Park~owner, Hotel Chain, Los Angeles)

Of course its safe and its easy!  And I’ll tell you why.  The State of California wants business owners to take adavantage of this Enterprise Zone tax-credit.  Uncle Sam actually sets aside a fund and is ready to give back $$$ to business owners that are qualified by bing located in the Enterprise Zone.  The sad thing is that in a given year roughly only 8,000 business have claimed these Enterprise Zone Tax-credits.  Only 8,000 businesses out of millions of businesses in the state of California applied for this benefit.  Millions and millions of dollars go unclaimed each and every year.  What do you think are some of the reasons why business owners miss out on these State tax breaks?  They like you may have doubts and question if it is safe?  That is why I am here to tell you YES it is safe! You will not get audited if it is done correctly. And who can provide you with the fast and correct service?  ATG can.  ATG makes the process absolutely easy and takes full liability by handling the project from beginning to end.  Please do not miss out, if you have any further doubts American Tax-credits Group is only an e-mail or phone call away to answer any of your questions or concerns.