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Repeal of Economic Development Areas and Enactment of New Business Tax Credits

Purpose of Bulletin

To inform staff of impacts of the 2013 Economic Development Initiatives. AB 93 and SB 90 repealed the Enterprise Zones (EZ) and Local Agency Military Base Recovery Areas (LAMBRA) and created new tax credits for businesses.

Background

AB 93 and SB 90 were enacted on July 11, 2013. The impacts are as follows:

  • Repeal of the EZ and LAMBRA programs as of January 1, 2014; Targeted Tax Area (TTA) and Manufacturing Enhancement Areas (MEA) expired on December 31, 2012.
  • Enactment of the New Employment Credit for employers who hire and retain new employees for taxable years beginning on or after January 1, 2014.
  • Enactment of the California Competes Credit for businesses that negotiate tax incentives with the Governor’s Office of Business and Economic Development.
  • Allowance of a partial Sales Tax Exemption for business that purchases qualified property beginning July 1, 2014.

Taxpayer Inquiries

Refer taxpayers to FAQs on our website at ftb.ca.gov, under the Businesses tab for answers to most questions.

We refer all questions regarding the Sales Tax Exemption to the Board of Equalization.

Additional Information

Taxpayers can call us at 916.845.3464 weekdays, 8a.m. to 5p.m., except state holidays. They can also email questions to GEDI@ftb.ca.gov.