AIR Says Program Helps Retain Business in State; Leading Commercial Real Estate Group Supports Extending Enterprise Zones.

LOS ANGELES -- Citing the substantial benefits available to businesses locating in Enterprise Zones of California communities, as well as the accompanying job stimulus and business retention rewards, the Board of Directors of the AIR Commercial Real Estate Association (AIR) of Los Angeles announced its support for a pair of bills currently before the state's legislature that seek to extend Enterprise Zones.

Becky Blair, immediate past president of AIR and governmental committee chair of its Board of Directors, reported that the association, which represents over 1,650 Southland commercial brokers, is closely watching SB 1008. She also said that AB 1766 is currently on the Senate Floor, while SB 1008 was scheduled for hearing last week by the Assembly Job, Economic Development and Economy Committee.

Blair emphasized that the California Association of Realtors is also supporting an extension of Enterprise Zones, scheduled to expire Jan. 7, 2007, in many California areas. She said cities in our area that are affected include Long Beach, Santa Ana and the South Bay area.

"We continue to lose businesses to competing states because the cost of doing business in California is just too expensive. The Enterprise Zone is at least one tax incentive that businesses can use when they locate in California. Extension of our current Enterprise Zones for new and existing businesses should be a priority to ensure California's continued job growth," said Blair.

She added that cities currently containing Enterprise Zones support the extension of these zones because it is beneficial to businesses locating within the zone. "When cities wish to attract new businesses or retain existing businesses, it is very helpful for them to be able to offer tax benefits financed by the state," Blair declared.

The benefits that businesses in Enterprise Zones receive include hiring credits, sales and use tax credit, business expense deduction, net operating loss carryover, and net interest deduction for lenders.

"Over the years a wide variety of local firms, from large manufacturers to small businesses, have been encouraged to locate in Enterprise Zone areas to take advantage of the tax credits offered to their businesses. In Long Beach, the Boeing company is a strong Enterprise Zone supporter," said Blair.

The Enterprise Zone program was developed by the California state legislature to provide targeted areas with a means to stimulate business growth and attract new companies, jobs and investment. Businesses already in the zone can qualify for benefits, along with new businesses relocating or expanding into the zone.