Governor signs key enterprise zone bill

By CMTA Staff

Capitol Update, Oct. 6, 2006 Share this on FacebookTweet thisEmail this to a friend

Governor Arnold Schwarzenegger signed AB 1550 (Juan Arambula, D-Fresno) which CMTA supported.  The bill provides continuity in the Enterprise Zone (EZ) program for those zones with an impending expiration.

Some EZs are in the process of applying for new zone designation and may receive a conditional designation, but the time between the conditional designation and the final designation can be significant. During this "gap" period it was unclear whether an EZ could continue to operate and whether those businesses in the zone could continue to receive EZ tax benefits.

AB 1550 provides a solution to allow the zones and the corresponding tax benefits to continue during this gap period. It also improves the program by allowing flexibility in drawing EZ boundaries by allowing noncontiguous areas to be included in EZ boundaries.

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