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Selma
Is Now Part of Enterprise Zone
California has established four types of
economic development areas (EDAS) that have related tax
incentives. These include Enterprise Zones, Local Agency
Military Base Recovery Areas, Manufacturing Enhancement
Areas and The Targeted Tax Area. EZs were established in
California to provide tax incentives to businesses and
allow private sector market forces to revive the local
economy. The program offers special tax incentives to
entities and individuals located in selected EZ areas.
The City of Selma is now part of the Fresno
County Regional Enterprise Zone that was recently
designated by the State of California. The zone includes
the cities of
Fowler,
Firebaugh, Kerman, Mendota, Orange Cove, Parlier, San
Joaquin, Sanger, Selma,
and portions of the
County of
Fresno.
Building economic opportunities statewide
Enterprise zones aid economically
distressed areas by offering businesses substantial
incentives if they
locate or expand within a designated
geographic area.
Enterprise
zones reward businesses that hire
local workers, encourage entrepreneurship,
and diversify communities’ economic base. There are
currently 42 zones in California—the
maximum allowed by state law—and zone designations extend
for
either 15 or 20 years.
Incentives
include:
o Hiring credits of $30,000 or more for
qualified employees.
o Sales tax credits of $20 million per year
for purchasing machinery and parts.
o Tax deductions and up-front expensing of
certain property.
o Assistance for banks that give zone
businesses loans.
Linking Benefits and Incentives to the
Greatest Need
Those
zone
applicants
that
demonstrated the greatest need and
potential
were awarded the status.
The new designations take the place of 23 zones
expiring over the next several months. In
order to finalize the conditional designations, local city
and
county governments
had to
complete
environmental impact reports and economic development
plans, then sign a memorandum of
understanding with the Department of Housing and Community
Development (HCD). To help ensure that
economic zones meet hiring and performance measures, the
State intends to audit zones annually.
State law requires audits every five years.
The success of enterprise zones in spurring
economic recovery is well documented. A report released
by HCD in August 2006 shows that from
1990-2000, compared to the rest of California, enterprise
zones on average experienced:
o Poverty rates – 7.35 percent lower than
the rest of the state.
o Household incomes – 7.1 percent higher.
o Salary income – 3.5 percent higher.
o Median rents – 2.3 percent higher.
A recent UC Davis study reports that
California’s enterprise zones added nearly 300,000 jobs to
California from 1992-2002, and that
employment in the zones grew at almost double the rest of
the state. This study also confirmed that the tax
collections generated by enterprise zones are higher than
their cost.
To learn more
about incentives, eligibility , documentation, and how to
register visit:
Fresno
County Regional Enterprise Zone
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