California Budget Project

Employers Scramble to Claim New Tax Breaks After State Kills ‘Wasteful’ Enterprise Zones

Miguel Sola Torá, San Francisco Public Press — Dec 2 2013 - 6:08pm

Among the companies benefiting were two Sacramento strip clubs and some of the nation’s largest corporations, including Wal-Mart, McDonald’s, Yum! Brands, FedEx, Starbucks and Wells Fargo

Large businesses in California “enterprise zones” reaped billions of dollars in tax breaks in recent years, but tax privacy laws made it impossible to tell whether the program actually encouraged companies to hire new workers in economically disadvantaged parts of the state. So the Legislature overhauled the $750 million program — but instead of killing it outrightstate put aside an equivalent amount for an even more elaborate array of tax credits. San Francisco officials said that a local, parallel tax break program will continue.

SAN FRANCISCO’S WORKFORCE REBOOT is the cover story in the fall 2013 print edition of the San Francisco Public Press. Check back for updates on other stories.

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