San Diego Regional Enterprise Zone

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State of California legislation approved in 2013 resulted in the premature termination of the State's Enterprise Zone (EZ) business tax credit program on December 31, 2013.

Concurrent with termination of the EZ program, the State has since introduced several new business incentive programs designed to assist qualifying companies in the San Diego region the opportunity to capture valuable tax credits to leverage against their annual tax liability to the State of California, as well as achieve other direct cost savings benefits.

Following is a summary of the State's replacement business incentives:

New Hiring Employment Credit (effective January 1, 2014)
Allows qualifying companies to capture up to $56,000 in tax credits (per qualified employee) for hiring individuals in traditionally difficult to employ categories; such as recently discharged veterans, ex-offenders, long-term unemployment, and public assistance. Administered by State of California Franchise Tax Board - FTB.
CA Competes Tax Credit Program (effective January 1, 2014)
Flexible tax credit program intended to promote job creation, business attraction, retention and expansion efforts in California. Program goal is to incentivize companies planning to move to CA; or expand their existing business operations in the State. Companies statewide submit on-line applications for the opportunity to capture significant quarterly allocations of State tax credits. Administered by State of California Business and Economic Development Department - GoBIZ.
Partial Sales Tax Exemption Program (effective July 1, 2014)
Affords businesses a 4.19% State sales tax exemption for qualifying manufacturing equipment purchases statewide; resulting in an immediate, direct cost benefit for company at the time qualifying equipment is purchased. Administered by State of California Board of Equalization - BOE.
The City of San Diego is actively promoting these new State incentives to businesses and other economic development stakeholders in our region. To learn more about these new programs or to determine if your business might qualify for some of these incentives, please contact Kevin Sullivan of the City's Economic Development Department at (619) 533-5954 or ksullivan@sandiego.gov.