1	ECONOMIC DEVELOPMENT DIVISION E N T E R P R I S E Z O N E Workshop for PIHRA August 9, 2007 11:30 AM – 1:30 PM Master’s College
2	Santa Clarita Economic Development Strategy The City of Santa Clarita strives to achieve a sensible, balanced approach to future growth and economic prosperity for both the business community and residents. Three Part Strategy 1. Address Jobs/Housing Imbalance Employment Opportunities For Residents 2. Expand & Diversify Economic Base Sales Tax Generation Wealth Creation - Attraction Of External $$$ Film & Tourism
3	Targeted Industry Clusters Aerospace Civilian and Defense Aircraft Manufacturing, Assembly, Research, Etc. Biomedical Pharmaceuticals, Diagnostic Equipment, and Related Production/Research Technologies All Leading Edge Technologies Including Computers and Electronics Media Film and TV Production, Print and Publishing, Visual FX, And Graphic Arts
4	Why These Industries? They create high-paying, high quality jobs These jobs have a high multiplier effect; between 2 – 2.5 new support jobs are created for each job in these 4 targeted industries Build upon the business base already here Helps to address the jobs to housing imbalance – commuters Reduce In-Town and Out-Of-Town Commuting Dispersion of Employment Hubs Throughout Santa Clarita
5	Santa Clarita Business Advantage A Business-Friendly Approach No Business License No Utility User Fee Expedited Streamlined Permitting Process Thriving Local Economy Well Educated And Talented Workforce Enterprise Zone
6	What is an Enterprise Zone?
7	"State of California" State of California Business Incentives and Tax Credits Program The program is monitored by the State of California Housing and Community Development Department (HCD) and the Franchise Tax Board (FTB)
8	Santa Clarita Enterprise Zone Facts The process of applying to the State for EZ designation began in the Spring of 2006 July 1, 2007 – Santa Clarita received “Final” designation from the State of California Housing and Community Development. Designation is good for 15 years or until the year 2022 The Santa Clarita Enterprise Zone covers over 8,694 acres of commercial and industrial zoned land, all within the City Limits. Over 97% of all businesses in Santa Clarita are in the Zone. A business must be in the Enterprise Zone to be eligible for tax credits. The Zone may be expanded by 15% of it’s original size or 1,304 acres
9	"Where is the Santa Clarita..." Where is the Santa Clarita Enterprise Zone?
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11	Who Is A Qualified Employer? A qualified employer must meet all of the following: Be engaged in a trade or business within an enterprise zone Obtains and retains certification (Vouchers) for qualified employees.
12	Hiring Tax Credit
13	"Employee was eligible for CalWORKS" Employee was eligible for CalWORKS Enrolled in, or eligible for WIA Intensive Services or Core B The Work Opportunity Tax Credit (WOTC) Economically Disadvantaged Dislocated worker Dislocated worker under Subdivision (b)(4)(A)(iv)(IV)(bb) due to plant, facility, or enterprise closure
14	Hiring Tax Credits Categories of Eligibility (continued) Dislocated worker under Subdivision (b)(4)(A)(iv)(IV)(cc) as long-term unemployed and has limited opportunities for employment or reemployment in the same or a similar occupation Dislocated former self-employed worker Dislocated civilian employee of the Department of Defense employed at a military installation being closed or realigned under the Defense Base Closure and Realignment Act of 1990
15	Enterprise Zone Categories of Eligibility (continued) Dislocated worker who was an active member of the armed forces or National Guard as of September 30, 1990, and was involuntarily separated or separated pursuant to a special benefits program Dislocated worker due to seasonal unemployment Dislocated worker due to Clean Air Act compliance Disabled Individual Vietnam era Veteran
16	Enterprise Zone Categories of Eligibility (continued) Ex-offender Recipient of, or eligible for, public assistance Native American, Native Samoan, Native Hawaiian, or member of another group of Native American descent Resident of a Targeted Employment Area (“TEA )
17	In Addition… A qualified employee must meet all of the following: Annual Test: At least 90% of the individual’s work must be directly related to the conduct of the taxpayer’s trade or business located within an Enterprise Zone At least 50% of the individual’s services for the taxpayer must be performed within the boundaries of an Enterprise Zone Time of Hire Test: The individual is hired after the area was designated as an Enterprise Zone (July 1, 2007) Immediately prior to hire, an individual is a qualified employee under CR&TC §17053.74(b)(4)(A)(iv) and §23622.7(b)(4)(A)(iv).
18	Qualified Wages Paid or incurred to qualified employees for the consecutive 5-yr period beginning on the first date of hire. Number of hours worked x Lesser of employee’s hourly wage or 150% of minimum wage. Salaried wages – use yearly salary divided by 2080 to determine hourly wage. Long Beach EZ – Aircraft manufacturing are allowed 202% of the minimum wage. Federal vs CA minimum wage.
19	"The credit is equal to..." The credit is equal to a percentage of qualified wages paid to qualified employees during a specified time period as shown below:
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22	What Happens Next?
23	Sources of Information State of California Franchise Tax Board Hotline Number: 1/916/845-3464 State of California Franchise Tax Board www.FTB.ca.gov, Form FTB 3805ZBK City of Santa Clarita Website www.santa-clarita.com Cheryl Adams, Enterprise Zone Administrator at 661/286-4118, or Alicia Parra, Enterprise Zone Vouchering Agent at 661/286-4071 (City Hall) or 661/424-1062, Ext. 11 (Santa Clarita WorkSource)
24	Questions & Answers
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