IRVINE, CA--(Marketwire - December 16, 2010) - Orange County Business Council (OCBC) congratulates the City of Anaheim for being awarded conditional status as an Enterprise Zone by the California Department of Housing and Community Development (HCD). OCBC also commends its partners, Todd Ament, CEO of the Anaheim Chamber of Commerce, and Janet Coe, Anaheim Economic Development Manager, and their teams for their tireless efforts to attract, retain and grow business.
Businesses within the Enterprise Zone are eligible for substantial tax credits and benefits, for example:
- Firms can earn $37,440 or more in state tax credits for each qualified employee hired.
- Corporations can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts.
- Up-front expensing of certain depreciable property.
- Lenders to Zone businesses may receive a net interest deduction.
- Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment.
- Enterprise Zone companies can earn preference points on state contracts.
- Up to 100% Net Operating Loss (NOL) carry-forward. NOL may be carried forward 15 years.
"Anaheim's Enterprise Zone designation is a tremendous business attraction tool and an effective way to reduce unemployment rolls," said OCBC President and CEO Lucy Dunn. "OCBC commends the Department of Housing and Community Development for its thorough review of Anaheim's application in a very competitive process to win this coveted designation."
OCBC also acknowledges the work of its own economist, Dr. Wallace Walrod, Vice President of Economic Development, who recognized first that Anaheim's economic data might qualify it for such an award. The city faces a 30% higher unemployment rate than the rest of Orange County and between 2005 and 2009 lost 25,000 jobs. He has worked in partnership with the City to develop an innovative plan highlighting the City's commitment to partnering with businesses who will invest back in the community.
"We look forward to the long-term impact the Enterprise Zone will have on the region's economic recovery efforts," said Ms. Dunn. "This is a step in the right direction for California's economic recovery and will go a long way towards creating a more business-friendly environment in the state."
Over the past year OCBC advocated on behalf of the business community for the preservation and expansion of Enterprise Zones, highlighting their ability to reduce unemployment and poverty levels. By helping to level the playing field and reduce the cost of doing business in California, Enterprise Zones remain one of the only dependable statewide economic development tools that local communities and economic developers can use to encourage businesses to stay or locate in-state. Enterprise Zones play a key role in revitalizing economically-challenged areas of the state, significantly increasing local business retention, encouraging job and business creation, and creating economically-stable communities.
In Anaheim, the Enterprise Zone boundaries include nearly all of the City's industrial and commercial areas, and approximately 80% of all Anaheim businesses. The Enterprise Zone designation is for 15 years. Final designation is expected no later than June 30, 2011. Anaheim was one of three cities statewide awarded this designation; the other new zones are Harbor Gateway and Santa Clarita Valley. Currently there are only 42 officially designated Enterprise Zone areas in the State of California. For more information about this announcement and for businesses interested in exploring the advantages of Anaheim please call the City of Anaheim Economic Development Office, at (714) 765-4323.
About OCBC:
Orange County Business Council is the leading voice of business in Orange County, California. OCBC represents and promotes the business community, working with government and academia, to enhance Orange County's economic development and prosperity in order to preserve a high quality of life. OCBC serves member and investor businesses with nearly 250,000 employees and 2,000,000 worldwide. In providing a proactive forum for business and supporting organizations, OCBC helps assure the financial growth of America's fifth largest county. For more information, visit www.ocbc.org.
Contact Information:
CONTACT:
Katherine Reedy
Director of Communications
949.794.7221