With the passing of the State 2011 – 2012 budget on July 1st, the budget retained the Enterprise Zone Program without any amendments. Since the State budget was passed, several reform bills, A.B. 1411 and A.B. 1278 have been introduced to improve the effectiveness of the Enterprise Zone program and balance ongoing State budget concerns. The Economic Development Division will continue to monitor State legislation and communicate any changes that may impact Pasadena businesses that participate in current tax incentives.
The Enterprise Zone Program is designed to provide incentives to businesses to employ local workers who face barriers to employment and expand when pro-growth decisions are risky. The Program itself offers significant state tax credit savings through a 5-year Employee Hiring Credit; potentially up to $37,000, Sales and Use Tax Credit, Business Expense Deduction, Net Operation Loss Carryover, and Net Interest Deduction for Lenders. In addition to the state tax credits, companies located within portions of the Enterprise Zone may be granted building and planning permit fee waivers, business license fee waivers, and fast-tracking of plans through the Planning & Community Development Department.
This is one of the few economic development initiatives available to create and retain jobs in the State and to ease any financial burdens of doing business in California. To obtain more information regarding the Pasadena Enterprise Zone, contact Economic Development at (626) 744-4660.