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Enterprise Zone Tax Credit Could See Changes Next Year

Joe Moore
Valley Public Radio

California Governor Jerry Brown and Democratic legislative leaders say they’re not looking at more tax increases now that voters have approved Proposition 30. 

But as Ben Adler reports from Sacramento, tax credits could be on the table, like the controversial Enterprise Zone program.

California offers 700 million dollars a year in tax credits to businesses who add or retain jobs in economically distressed neighborhoods.  

The governor proposed eliminating Enterprise Zones last year but couldn’t win legislative approval. 

Now, Democrats hold supermajorities in both chambers – and Senate Leader Darrell Steinberg says it’s time to revisit the issue.

“Just like on the spending side, show us what you’re producing," says Steinberg.

But Craig Johnson with the California Association of Enterprise Zones says he thinks the credits are safe.

“I don’t anticipate the governor making an announcement that he wants to eliminate the program.  That would surprise me.  Will they try to shrink the program – through rule writing and regulations?  Yes, I think so,” says Johnson.

He says the program’s elimination would cost the state nearly 125,000 jobs.