Enterprise zone experiences jump in business use of program
SAN BERNARDINO, Calif. (July 18, 2011) –The San Bernardino Valley Enterprise Zone (SBVEZ) announced today the businesses utilizing the zone have filed more than 2,000 hiring tax credit vouchers since Jan. 2011. The number of vouchers filed this year will soon exceed the total number of vouchers filed in 2010, in just half the time.
Last year, approximately 2,300 vouchers were filed by 182 businesses. This year more than 145 businesses have already taken advantage of the incentive. The zone has seen a significant jump in activity from businesses, suggesting that number of vouchers filed in 2011 will double the number filed last year.
“Each year we seem to double the number of vouchers filed from the previous year, and having already reached 2,000 vouchers is a good sign we will do it again this year,” said Wendy Clements, SBVEZ zone manager. “The continued growth of the program locally shows that our efforts to educate employers about the zone are paying off.”
The hiring tax credit is the most commonly used program incentive, which grants employers a tax deduction for providing a job to a local disadvantaged worker who faces barriers to employment. Common barriers include long-periods of unemployment, receipt of public assistance, lack of skills and education, and having a disability or a criminal history.
The 2,000 vouchers filed so far this year are estimated to produce $75 million in tax savings for these businesses during the five-year period they can claim the credit for a single employee. Reports also show that these cost savings have contributed to the creation of 14 new jobs and the retention of 1,998 existing jobs in the zone.
Designated in 2006, the SBVEZ includes the city of Colton, city of San Bernardino and unincorporated portions of San Bernardino County.
About the San Bernardino Valley Enterprise Zone
The San Bernardino Valley Enterprise Zone is an Enterprise Zone established by the California Department of Housing and Community Development to encourage investment, growth, development and job creation in economically distressed areas of the county. The zone covers approximately 42 square miles and includes areas of Colton, San Bernardino and unincorporated portions of San Bernardino County. The Enterprise Zone is a joint effort between the Inland Valley Development Agency, City of Colton, City of San Bernardino, and the County of San Bernardino. For more information, visit www.SBVEZ.com, or email firstname.lastname@example.org