California Enterprise Zones

• Taxpayers can receive tax benefits for locating their companies in formally designated enterprise zones. Under the Enterprise Zone Act, the California Technology, Trade and Commerce Agency and the California Department of Housing and Community Development are responsible for designating certain areas as enterprise zones or "Geographically-Targeted Economic Development Areas." To receive a formal designation as an enterprise zone area, the area must have experienced at least one plant closure affecting over 100 employees, the area must have a record of gang-related activities or crimes or the area must be considered as an eligible enterprise area, according to the federal U.S. Department of Housing and Urban Development's Urban Development Action Grant Program. In addition to receiving state income tax benefits, business owners may be eligible for local property tax credits for locating their companies in these designated areas.