Yesterday in San Diego Governor Jerry Brown signed two bills which effectively end the state’s long-running Enterprise Zone program and establish the Governor’s Economic Development Initiative. The bipartisan legislation is intended to help bolster California’s business climate and put Californians to work through the following measures:

  •  Sales Tax Exemption: A statewide sales tax exemption on all manufacturing equipment and research and development equipment purchases for biotech and manufacturing companies;
  • Hiring Credits: Hiring credits for businesses in areas with the highest unemployment rate and poverty; and
  • California Competes Investment Incentives: The opportunity for California businesses to compete for available tax credits based on the number of jobs to be created and retained, wages paid in those jobs, and other factors.

At the signing ceremony, the Governor stated, “This legislation will help grow our economy and create good manufacturing jobs.” … “Through our great university system and through the companies we have, California can build on the strength of intellectual capacity. Let’s get to work!”

More from the press release: “The Governor’s Economic Development Initiative follows a strong record of pursuing regulatory changes and legislation to improve the state’s business climate. Since taking office in 2011, the Governor has approved legislation to modernize the workers’ compensation system, the regulatory and fee structure for the timber industry, Americans with Disabilities Act (ADA) compliance requirements and the facility inspection process for the life sciences industry. In addition to these legislative actions, Brown has established the Governor’s Office of Business and Economic Development (GO-Biz) as the state’s lead economic development office to advance business opportunity in California and enacted administrative changes to streamline the oil and gas drilling permitting process.”  Click here for more detail.

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