We regret to inform you that after a tremendous effort from all of our stakeholders, businesses and individual citizens; the Pasadena Enterprise Zone will end on December 31, 2013. On July 12, 2013, Governor Brown signed Assembly Bill 93 and Senate Bill 90, which effectively eliminates the State Enterprise Zone Program on December 31, 2013 and replaces the program with the Governor’s new incentive program beginning on January 1, 2014.
New state law passed on September 26, 2013 now allows all Enterprise Zone to continue accepting and processing Hiring Credit voucher applications up until January 1, 2015. Pasadena businesses may continue to submit applications for qualified employees hired on or prior to December 31, 2013 for both the 1992 and 2007 Pasadena Enterprise Zone Designations.
The City has developed a “Frequently Asked Questions” listed below to help answer some questions about the end of the Pasadena Enterprise Zone program. Contact Melissa Alva, Enterprise Zone Manager, at (626) 744-7347, or by email to firstname.lastname@example.org for more information, voucher forms, email updates, and to RSVP for upcoming workshops.
(1) Has the Enterprise Zone Program, with all five state tax incentives, been eliminated?
Yes, both AB93 and SB90 have eliminated all five state tax credits with the Enterprise Zone Program. Enterprise Zone businesses have until December 31, 2013 to take advantage of these tax credit programs.
(2) Will I be able to submit applications for the Hiring Credit Program?
Yes, Pasadena businesses have until December 31, 2014 to submit hiring credit applications for any qualified employees hired in 2013 or prior in order to collect a State Hiring Credit.
(3) What about Targeted Employment Areas (TEAs)?
On July 10, 2013, the Department of Housing and Community Development approved new TEA census tracts for the City of Pasadena. The effective date is retroactive to January 1, 2013. Both the new and previous TEA ranges and maps are located on www.cityofpasadena.net/economicdevelopment/enterprise_zone/ .
(4) What happens to the State tax credits my company has earned after December 31, 2012?
Enterprise Zone businesses are no longer able to carry forward any earned credits until exhausted. Instead, Enterprise Zone businesses are only able to carry forward the credits up to 10 years from January 1, 2014.
(5) I just learned about the Enterprise Zone Program, will the Enterprise Zone Office offer any workshops on how to use the Program?
The City will organize several workshops to educate businesses on the Enterprise Zone Program and Hiring Credit submittal process. The next workshop is scheduled for Thursday, November 7, 2013 from 8:30am to 9:30am at the University Club of Pasadena, 175 North Oakland Avenue. Held in partnership with the Foothill Workforce Investment Board and the Employment Development Department, businesses will learn about the Enterprise Zone Program as well as other state and federal incentive programs. To RSVP for these free events, please send an email to email@example.com Space is limited, early RSVP’s are encouraged.
(6) I heard that the State created another set of tax credit programs that will begin on January 1, 2014, what are they?
With the passage of SB 90 and AB 93, also known as the Governor's Economic Development Initiative, the Enterprise Zone program was replaced with three new tools for economic development in California. Those tools include a targeted hiring credit, a sales and use tax exemption for manufacturing and R&D equipment purchases and a new flexible tax credit for business attraction and expansion called "California Competes.” For more information, please visit www.ftb.ca.gov/businesses/Economic_Development_Incentives/.
Melissa Alva, Enterprise Zone Manager General Phone: (626) 744-4660 Direct Line: (626) 744-7347 Fax: (626) 396-8790 Email: firstname.lastname@example.org Mailing AddressCity of Pasadena Attn: Melissa Alva 100 North Garfield Avenue, 4th Floor Pasadena, CA 91101
DISCLAIMER: Facts and circumstances vary from business to business. Please consult your tax professional about your particular situation.