Governor’s New Hiring Credit Pilot Program Includes Riverside
Building on efforts to grow California’s economy and help businesses create jobs, Governor Edmund G. Brown Jr. announced Thursday, April 24, 2014 new tax incentives for employers hiring workers in Riverside, Fresno and Merced.
“The state’s economy is steadily improving and more than a million Californians are back to work after the massive mortgage meltdown,” said Governor Brown. “These tax credits will spur new jobs and help communities hardest hit by the recession.”
The New Employment Credit (NEC) is part of the Governor’s Economic Development Initiative. Under the legislation, the Governor’s Office of Business and Economic Development (GO-Biz) will oversee the credit and may designate up to 5 pilot areas. In selecting the first round of pilot areas, GO-Biz evaluated employment, poverty and wage data to identify areas of the state that would benefit the most from the expanded hiring credit. The geographical designations for the NEC and the pilot areas can be found on the Franchise Tax Board’s website. The designation as a pilot area is effective immediately, applicable for four years and may be extended by GO-Biz for an additional three years.
The Governor’s Economic Development Initiative is funded by redirecting approximately $750 million annually from the state’s former Enterprise Zone program and also includes a statewide sales tax exemption on qualifying manufacturing equipment and research and development equipment purchases for biotech and manufacturing companies.
Additional information on the NEC and other aspects of the Governor Economic Development Initiative can be found here.