Elimination of Enterprise Zones Warrant CRA Review
February 18, 2014
As reported last year by CBA, the California Legislature eliminated the state’s enterprise zones program effective January 1 this year. In its place, persons and entities may qualify for sales and use tax credits, hiring credits and income tax credits based on new criteria as set forth by AB 93 and SB 90. Sales and use tax credits now focus on spurring manufacturing and biotech research and development.
Hiring credits are allowed based on the location of employment, which include the former enterprise zones, and are targeted at helping veterans, the unemployed, those on public assistance and ex-offenders. A new commission is established to review projects eligible to receive income tax credits based on a number of criteria intended to boost employment and economic development.
Banks that have received Community Reinvestment Act credit for loans and investments in enterprise zones should review their CRA files for continued eligibility.
See CBA’s Regulatory Compliance Bulletin for more information.