cordially invites you to our annual

BACK-TO-SESSION LEGISLATIVE RECEPTION

Mayahuel Restaurant

Wednesday, January 11, 2012

1200 K Street, Sacramento

5:30pm

Please RSVP by January 9 to Bryce Brown (916) 551-1383

or bbrown@millerpagroup.com

REMINDER: Back-to-Session Reception January 11 is a post from: California Association of Enterprise Zones

More than 300 businesses are benefiting from hiring tax credits from the Enterprise Zone program, the city of Santa Clarita reported Tuesday.

The city of Santa Clarita reported 301 companies participating in the program range in size and industry; from large corporate entities such as Citibank, 24 Hour Fitness, and Vons, to more localized businesses such as Animal Medical Center, Aerospace Dynamics, and Sabor Cocina.

The Santa Clarita Enterprise Zone is one of 42 programs in California, providing special state tax incentives to qualified businesses.

The program has saved local companies an estimated $154 million and created 801 new jobs since its inception in 2007, the city reported.

Also, more than 4,114 people have been hired into existing jobs through the tax credit program benefiting local companies.

Businesses can reduce their state income tax by up to 50 percent on their tax returns, allowing them to reinvest money in the business.

“These are tough economic times for companies across the country and certainly for businesses in Santa Clarita,” said city of Santa Clarita Mayor Marsha McLean.

“The Enterprise Zone program is helping companies of all sizes in our community, providing incentives for business expansion, job retention, and growth.”
Valley-wide
The Santa Clarita Valley Economic Development Corporation has a valley-wide Enterprise Zone program waiting final approval.

The Santa Clarita Valley Enterprise Zone will allow companies in the unincorporated areas to benefit from the same tax hiring and equipment purchase benefits as companies located within the city currently enjoy.

“We expect a resolution very, very shortly,” said Josh Mann, manager of business retention and marketing for the SCVEDC.

Expecting approval shortly, the city of Santa Clarita and SCVEDC are working together to roll out the benefits of the Enterprise Zone to all businesses within the Santa Clarita Valley.

“There’s no need to reinvent the wheel,” Mann said.

The SCVEDC is working with the city to put together a marketing plan in preparation to roll the program out to businesses throughout the entire Valley, he said.

City to administer
The two entities want to get the word out to companies who have not been previously been able to participate and let them know how successful the program has been for local businesses.

The city of Santa Clarita is working with the county and the SCVEDC on the program and marketing it to make sure all the businesses are aware of the benefits, said Jason Crawford, marketing and economic development manager for the city of Santa Clarita.

“The city will be administering the program for the whole Santa Clarita Valley,” Crawford said.

Read the entire article here.

SCV business benefiting from EZ credits is a post from: California Association of Enterprise Zones

Businesses in Hesperia’s enterprise zone have picked up tax credits for more than 140 employees since 2010.

“I think, year to date, we’ve actually had 80 vouchers approved, which is between Jan. 1 and today,” said Steve Lantsberger, the city’s deputy director of economic development.

Sixty tax vouchers were filed between April, when the zone became active, and the end of the year.

“If we stay on pace, we’ll double last year,” Lantsberger. “I think that’s a function of we have a pretty intense effort to educate businesspeople.”

The enterprise zone covers most of the city, outside of residential areas. Businesses only need to be located within an enterprise zone to qualify. Ninety-five percent of existing Hesperia businesses are in Hesperia’s enterprise zone.

Operating in a state-designated enterprise zone offers a number of benefits to businesses, including:

• Up to $37,440 in sales tax credits over five years for each qualified employee they hire.
• Purchases of qualified machinery or parts can earn state tax credits.
• Lenders to businesses in the enterprise zone are eligible for benefits.
• Businesses operating in the enterprise zone earn preference points when competing for state contracts.

Officials don’t know how many Hesperia businesses are taking advantage of many of the enterprise zone benefits.

“The only ones we get directly involved with are enterprise zone hiring benefit vouchers,” as the city has to verify employee eligibility, Lantsberger said.

And they still haven’t seen all of the vouchers he expects them to see.

“A lot of companies have yet to file those vouchers,” Lantsberger said. “There’s a lot more jobs that were created in the enterprise zone than just the 140.”

Gov. Jerry Brown talked about axing the enterprise zone program as a cost-cutting measure earlier in the year, a move that was opposed by a coalition of California cities and business interests. In the end, legislation to cut the program never materialized.

“It’s still intact, it wasn’t changed,” Lantsberger said. “There are some pending bills that would make some minor modifications, but those are yet to be signed into law.”

Read the whole article here.

Enterprise zone meant tax credits for 140+ employees is a post from: California Association of Enterprise Zones

By ALLAN R. MANSOOR / Republican assemblyman, 68th District

Allan R. Mansoor: Axing E-Zone tax credits a contract breach is a post from: California Association of Enterprise Zones

We can no longer ignore that California’s economy isn’t in recovery. More than 2 million Californians are unemployed and our state budget has been cut to the bone, as deficits continue to persist.

We hear stories almost daily of companies scaling back their operations and laying off employees. Others simply don’t have the resources to continue and close their doors. Yet some of our state lawmakers in Sacramento seem to lack focus on doing all they can to improve this situation.

Unfortunately, there is a recent example of this that hits home in San Mateo County. Many of us are aware of the VWR International situation — a business that has chosen to relocate to Visalia, because it has outgrown its facilities in Brisbane. Opponents of the California Enterprise Zones program have cried foul claiming that by making this move, VWR may be eligible to take advantage of Enterprise Zone tax credits.

The critics even went so far as to have legislation introduced that would have prevented VWR, or any other California company considering a move to an Enterprise Zone, from using the tax incentives that the program provides.

To anyone concerned about job retention and creation, fostering a dynamic business climate and putting Californians back to work, this idea made no sense. Using the Enterprise Zone program as a scapegoat and blaming successful, job-creating incentives for VWR’s move, is both misguided and unfair to a program that created and retained over 118,000 jobs in 2010.

While it is understandable that the Brisbane community is concerned about losing 183 jobs, the silver lining is that these jobs are staying in California and the Enterprise Zone program may provide the impetus for expansion and even more jobs being created.

California companies contemplate relocation for a variety of reasons — regulatory costs, logistics, high taxes, available labor pool, lack of square footage, etc. Taking away cost-saving incentives, such as those provided by the Enterprise Zone program, only provides another reason for businesses to look outside California to meet their needs.

Assemblyman Jerry Hill, the main proponent of this legislation, has argued that companies seeking to relocate within an Enterprise Zone should have to prove that there is a net job increase in their new location, before the company can utilize tax credits.

Is it truly good public policy to punish a company that is retaining nearly 200 jobs? Would Assemblyman Hill prefer VWR take its jobs to Nevada or Texas? It’s bad enough that California continues to rank dead last as the worst state in which to do business. This legislation does nothing to improve this ranking.

Thankfully this bill stalled in the Legislature, thanks to the foresight of Assembly Jobs Committee Chairman V. Manuel Perez and other lawmakers, who understand the state’s already-limited ability to retain jobs and keep companies in California.

If legislators want to find a way to improve the state’s economy, attacking the Enterprise Zone program and it’s job-creating incentives, only diverts their attention from addressing the real impediments to turning around the state’s economic climate.

Read the entire article here.

Contra Costa Times Readers’ Forum: Attacking Enterprise Zones won’t help economy is a post from: California Association of Enterprise Zones

A vote on the state budget is expected today.  The current budget proposal still includes detrimental language to the Enterprise Zone program.

We need your help!  Click here to contact your legislators and tell them to OPPOSE AB 103, the budget bill that includes reforms that will destroy the Enterprise Zone program.

Help us save the only program in California designed to create and retain jobs!  Help us save the Enterprise Zone program.

Take Action Now: Save Enterprise Zones is a post from: California Association of Enterprise Zones

Following up on our successful lobby trip on May 17, we are pleased to announce a second lobby day for those of you who were not able to make it on the 17th.

CLICK HERE to join us on June 7, 2011 in Sacramento. We need your help to get the word out to legislators about the importance of the Enterprise Zone program.

Now, more than ever, it is important that we come together and remind our legislators and the governor of the vital role Enterprise Zones play in the state’s continued economic recovery.

June 7 Lobby Day Agenda

9:15 AM: Arrive at Manatt, Phelps and Phillips office.  A light continental   breakfast will be provided.  We will also be providing you with team assignments, talking points, your schedule and a debriefing of issues.

Please arrive no later than 9:15AM.

LOCATION: Manatt, Phelps, and Phillips office
1215 K Street, Suite 1900
Sacramento, CA 95814

10:00AM: Meetings begin at the Capitol.

12:00PM: Lunch break at Manatt, Phelps and Phillips.  A box lunch will be
provided.  We are currently confirming a guest speaker.

LOCATION: Manatt, Phelps, and Phillips office
1215 K Street, Suite 1900?
Sacramento, CA 95814?

1:30PM-4:00PM: Additional meetings with Legislators at the Capitol.

The last meeting should end before 5:00 PM.

For additional assistance, you can contact Judy at 916-446-2211 or Megan at 916-448-3075.

We look forward to seeing you!

June 7: Enterprise Zone Lobby Day is a post from: California Association of Enterprise Zones

Vista-based beef wholesaler Jensen Meat Inc. was weighing relocating to the San Diego Regional Enterprise Zone, which includes Otay Mesa, most of National City and western Chula Vista.

But Chief Executive Officer Robert Jensen has informed Mayor Jerry Sanders that he has put the expansion on hold. He said he’s looking at other options, including sites out of California, now that the future of enterprise zones is in doubt.

“If the Enterprise Zone is to be terminated, there are only two alternatives,” Jensen wrote the mayor. “The first option is not to expand and be out of business since we cannot meet the demands of our growing national customers, (which) is not a viable option.”

…

But Sanders disputes those findings, and points to the value of the agencies.

He says the enterprise zone has generated more than 13,200 jobs at 750 companies in the past three years, noting that Nassco/General Dynamics Corp. has hired 2,900 shipyard workers and Goodrich Corp. has hired more than 1,000 through the program.

Sanders also says that it’s not just for large enterprises, small businesses have taken advantage of the program, too.

For example, he says Craft Labor & Support Services LLC has added 98 local jobs since opening in National City’s portion of the enterprise zone in 2008. The company employs 200 in California and Washington state.

To read the entire article, click here.

San Diego Business Journal: With Future of Enterprise Zones in Doubt, Firm May Pack Up, Go is a post from: California Association of Enterprise Zones

The Riverside County Board of Supervisors approved a resolution opposing the governor’s proposal to eliminate the Enterprise Zone program

(Riverside County, CA)—On Tuesday, March 22, the Riverside County Board of Supervisors voted 5-0 in favor of a resolution supporting the Enterprise Zone Tax Credit program. Governor Brown has threatened to eliminate the Enterprise Zone program as a part of his solution to close the $25.4 billion budget deficit.

The resolution, sponsored by Supervisor John J. Benoit, urges legislators to preserve the Coachella Valley Enterprise Zone—Riverside County’s only designated Enterprise Zone.

According to Supervisor Benoit’s statement at the Board of Supervisors’ meeting, Coachella Valley, “has used the Enterprise Zone’s incentives to encourage new businesses, including manufacturers, to locate within the Enterprise Zone and has encouraged existing businesses to expand their operations.”

The resolution, which passed unanimously, reads in part: “Enterprise Zone[s] provides an economic development tool for poor and blighted communities by creating incentives for businesses to hire new employees and purchase equipment for their businesses…”

Cities across the state have taken similar action in passing resolutions in support of the Enterprise Zone Tax Credit program.  For a full list of Enterprise Zone supporters, please click here.

You can read the text of the entire resolution here.

Riverside County Joins List of Enterprise Zone Supporters is a post from: California Association of Enterprise Zones

In Case You Missed It: Small Business Alliance Argues for Enterprise Zone Program

Says program has created more than one million jobs

(Sacramento, CA)—Bill LaMarr, Executive Director of the California Small Business Alliance has penned a response to an editorial in the Sacramento Bee in which he argues that Enterprise Zones create jobs and the program’s elimination will result in an illegal budget maneuver by the governor and Legislature.

Sacramento Bee: Enterprise zones create jobs, revive communities By Bill LaMarr

A March 8 editorial in The Bee (“Insiders vow lawsuits to save perks and pork”) called on businesses to drop our opposition to the proposed elimination of enterprise zones.

If someone tries to steal your property, you defend yourself and stop it.

The proposal to eliminate enterprise zones is like taking someone’s property and it’s illegal.

…

But this is more than just a legal issue. Saving enterprise zones is essential to the state’s economic recovery. The program has created or saved more than 1 million jobs.

Enterprise zones give communities an effective tool for fighting poverty and moving people from public assistance to gainful employment. For example, Compton’s enterprise zone has created hundreds of jobs since 2007. Compton’s assistant city manager said: “If you cut these programs our city will be totally cut off at the knees. It will be disastrous for us.”

…

This proposed action is illegal, damaging to California companies, and will result in thousands of lost jobs. That’s why taxpayers, local government, small business and legislators of both parties support saving enterprise zones. It’s not just the right thing to do, it’s the smart thing to do.

Read the entire article at: http://www.sacbee.com/2011/03/13/3469215/enterprise-zones-create-jobs-revive.html#ixzz1GalDLiDd

Sacramento Bee: Small Business Alliance Argues for Enterprise Zone Program is a post from: California Association of Enterprise Zones