Enterprise Zones
An Enterprise Zone is a defined geographic area in which businesses can claim certain state income tax savings and other advantages.
Enterprise Zones were created in California to stimulate business investments in areas that are economically disadvantaged and to spur
job growth in areas of high unemployment. The state of California has designated 39 locations as Enterprise Zones. One is located in the City of San Diego.
California Income Tax and Other Benefits:
- Tax credits may be claimed on up to half the wages paid to qualified new employees.
- Tax credits may be claimed for sales taxes paid on equipment purchased for manufacturing or production purposes.
- All net operating losses may be carried forward as a deduction in future years.
- Business equipment depreciation can be accelerated, up to a limited amount.
- Low-income employees can claim their own personal income tax credits.
- The state will give priority for Industrial Development Bond applications.
- Lenders (both commercial and private) may deduct net interest income on loans to Enterprise Zone businesses.
For more information on Enterprise Zone benefits and a list of streets and block numbers within the zones,
please visit the California Housing and Community Development Department web site.
City of San Diego Benefits:
- The Enterprise Zone Job Referral Service will assist with recruitment and pre-screening for new employees at no cost and will provide the necessary verification for you to claim tax credits on their wages.
- City staff can expedite permit applications and serve as liaison with other City departments.
- Certain development fees may be reduced or waived.
- New development projects located in the City's Enterprise Zones are eligible for direct assistance by the City. Assistance includes help in determining project application requirements, fast track permit processing, liaison help in the development process.
- The City can provide an exemption from urban impact fees and housing trust fund fees.
- The City of San Diego was originally home to two different Enterprise Zones: the Metropolitan Enterprise Zone and the South Bay Enterprise Zone. In 2006, the two zones were merged and then enlarged to become the San Diego Regional Enterprise Zone. It includes
portions of San Diego in the Third, Seventh and Eighth Council Districts, as well as parts of the City of Chula Vista and National City. Parts of the
zone overlap with the City's Foreign Trade Zone and a Recycling Market Development Zone, which offer other benefits.
- A "special enterprise zone" is located at the Naval Training Center and provides advantages similar to other Enterprise Zones, though specific eligibility criteria and benefits may differ. Businesses of all types that are located within a Local Area Military Base Recovery Area (LAMBRA) are eligible.
For more specific information, please see:
San Diego Regional Enterprise Zone Fact Sheet
San Diego Regional Enterprise Zone Sites Map
Business Development and Incentive Zone Mapping System
For a list of streets and block numbers within the zones, visit the California Housing and Community Development Department web site.
For more information, contact the City's Economic Development Division.
For assistance or information on recruitment or job training, call the Enterprise Zone Job Referral Service at (619) 236-6302.
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