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California Eliminates Enterprise Zones

by Scott Donald, Irvine, August 2013


California lawmakers have talked about doing away with the state's Enterprise Zone program for years. This session, they finally did it with the passage of Assembly Bill 93.


Not everyone is happy about the change. Assemblywoman Cheryl R. Brown said, "AB 93 will eventually eliminate the only economic tool we have left to attract businesses."


Another critic, Long Beach Mayor Bob Foster, agrees. In a letter to legislators, Foster said not only will the law hamper efforts to bring new businesses to the state, it will also cause a major disruption to companies that have incorporated Enterprise Zone programs into their long-range business plans.


AB 93 repeals provisions allowing for Enterprise Zones, manufacturing enhancement areas, targeted tax areas, and local military base recovery areas on January 1, 2014.