After talking about the new 2009 zone designation round, let’s go back to the 2006 round: San Bernardino has just secured their final designation. Here is the press release issued by the City:
SAN BERNARDINO, Calif. (March 16, 2009) –The San Bernardino Valley Enterprise Zone (SBVEZ) announced this week that the California Department of Housing and Community Development granted final designation to the zone for a 15-year period. A special ribbon-cutting ceremony will be held next month to honor the designation.
Businesses located in the SBVEZ may be eligible to reduce their costs through state and local tax incentives designed to help companies maintain and expand their operations. For example, a business filing for hiring tax credits can receive up to $36,000 per qualified employee during a five-year period, which can make a significant impact to their bottom line.
“In this economy, cost reductions are extremely important. Business owners cannot afford to leave money on the table,” said Wendy Clements, zone manager for the San Bernardino Valley Enterprise Zone. “These tax incentives help businesses free up extra capital, and are very easy to file for.”
The SBVEZ is one of 42 Enterprise Zones in the state. It exists to encourage job creation and economic development in the distressed areas of Colton, San Bernardino and unincorporated portions of San Bernardino County.
SBVEZ has operated using a conditional designation since October 15, 2006. It is now scheduled to remain an Enterprise Zone until October 14, 2021.
“This Enterprise Zone is critical to revitalizing a significant portion of the county. At a time when budgets are tight, businesses are choosing the most cost-effective locations for operation,” added Clements.
The four tax incentives offered by SBVEZ are:
· Hiring tax credit: Employers may claim a percentage of each qualified employee’s wages for five years.
· Sales or use tax credit: Businesses may claim an annual sales or use tax credit on qualified property purchased and used in the zone.
· Business expense deductions: Businesses may claim 40 percent of the eligible cost of qualified property as a business expense the first year it is in service.
· Lender’s credit: Lenders may deduct the amount of net interest produced from a loan made to a SBVEZ business.
”The Enterprise Zone program represents an important partnership between businesses and the communities they serve in our state,” said Craig Johnson, president of the California Association of Enterprise Zones (CAEZ). “Enterprise Zones help the people and the regions that are hardest hit in an economic downturn. The program provides the tools needed to stimulate economic growth in order to create jobs and keep people employed.”
Research has shown that poverty decreased 7.35 percent more in Enterprise Zones than in the rest of California, while unemployment rates fell by 1.2 percent more and household incomes grew 7.1 percent faster in zones as compared to the rest of the state.
About the San Bernardino Valley Enterprise Zone
The San Bernardino Valley Enterprise Zone is an Enterprise Zone established by the California Department of Housing and Community Development to encourage investment, growth, development and job creation in economically distressed areas of the county. The zone covers approximately 42 square miles and includes areas of Colton, San Bernardino and unincorporated portions of San Bernardino County. The Enterprise Zone is a joint effort between the Inland Valley Development Agency, City of Colton, City of San Bernardino, and the County of San Bernardino. For more information, visit www.SBVEZ.com, or email info@SBVEZ.com.