SANTA CLARITA IS ENTERPRISE ZONE BUSINESSES HAVE CHANCE TO EARN TAX BREAKS.Byline: ALEX DOBUZINSKIS Staff Writer SANTA CLARITA Santa Clarita, city (1990 pop. 110,642), Los Angeles co., S Calif., suburb 30 mi (48 km) NW of downtown Los Angeles, on the Santa Clara River; inc. 1987. Situated in the Santa Clara valley and nearby canyons, Santa Clarita includes the former towns of Canyon Country, -- State officials Friday announced their choice of Santa Clarita as one of 23 new enterprise zones, giving local businesses the chance to earn generous tax breaks. The 15-year economic development initiative will extend across nearly all parts of the city zoned for commerce, industry and business. ``It will be the largest incentive-based program that the city has ever had an opportunity to participate in,'' said Larry Mankin, executive director for the Santa Clarita Valley The Santa Clarita Valley is the valley of the Santa Clara River in Southern California. It stretches through Los Angeles County and Ventura County. Its main population center is the city of Santa Clarita. The valley was part of the 48,612-acre (19,672. Chamber of Commerce. Businesses will able to earn more than $30,000 in state tax credits for each qualified employee hired. They will also be able to claim sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. credits of $20 million for buying machinery and parts. Businesses are always considering whether to hire or expand, City Manager Ken Pulskamp said. ``With this tool, it makes it so that the (answer) more often is going to come out yes,'' he said. ``Yes, we should expand; yes, we should hire more employees; yes, we should grow.'' There are a total of 42 enterprise zones in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ; the program has been around for 20 years. Enterprise zones have poverty rates 7.35 percent lower than the rest of the state, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a study conducted between 1990 and 2000. The areas also had higher household incomes (7.1 percent higher) and median rents (2.3 percent higher). Santa Clarita was one of six Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County areas chosen to be enterprise zones by Gov. Arnold Schwarzenegger Arnold Alois Schwarzenegger (German pronunciation (IPA): [ˈaɐ̯nɔlt ˈaloɪ̯s ˈʃvaɐ̯ʦənˌʔɛɡɐ] . The others were central Los Angeles/Hollywood, South Gate/Lynwood, Compton, Long Beach and Pasadena. In all, 23 new enterprise zones were chosen in the state. The program is meant to focus on areas of economic distress. State officials look at U.S. Census data to determine poverty and unemployment levels in a community, but they also consider how committed a city is in backing the program, officials said. ``Since I became governor, I have worked tirelessly tire·less adj. Not yielding to fatigue; untiring or indefatigable. tire  less·ly adv. to improve the
business climate and create more than 65,000 new jobs,''
Schwarzenegger said. ``By using incentives like hiring credits or sales
tax credits, these enterprise zones can harness the entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. spirit of our state and help draw business investment to economically depressed areas. Enterprise zones lead to more jobs, less poverty and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. economic stability.'' Any city in the state can apply for enterprise zone status. ``There are areas in the city that could use some economic advancement,'' Pulskamp said. ``There clearly are areas that are very strong, but there are other areas that are in need of assistance and this is a tool that will significantly help those areas.'' Besides tax credits, there are a number of other considerations given to businesses in enterprise zones. ``We are helping both these businesses and the population who works with them, with incentives for the businesses to hire workers that are local,'' said Lynn Jacobs, director of the state department of Housing and Community Development. ``And it has had a tremendous effect in reducing sprawl in our community, letting people work where they live and providing them opportunities to move up in our society.'' City News Service contributed to this story. alex.dobuzinskis(at)dailynews.com (661) 257-5253 CAPTION(S): photo Photo: (color) Gov. Arnold Schwarzenegger selected Santa Clarita as one of 23 enterprise zones designated in the state. The designation gives businesses in Santa Clarita the opportunity to earn generous tax breaks. Rick Bowmer/Associated Press |
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