Gov. Brown signs business incentive bill

July 12, 2013

Gov. Jerry Brown signed legislation on Thursday revamping an economic program in an effort to encourage manufacturing and job growth in California. [MercuryNews]

Brown initially objected to continuing the business incentives calling the program outdated and inefficient but later compromise after businesses pushed back.

The bills, AB93 and SB90, will extend a sales tax exemption for manufacturing and research-and-development equipment for eight year, provide hiring credits for businesses in areas with high unemployment rates, and provide tax credits to encourage businesses to expand and retain jobs in California.

Brown said some businesses abused the incentive program by providing unneeded tax breaks to businesses that pay low wages.

“The enterprise zone program represented some of the worst abuses of taxpayer money this state has seen,” California Labor Federation Executive Secretary-Treasurer Art Pulaski said Thursday in a prepared statement. “Instead of using taxpayer funds to create jobs, the broken enterprise zone program subsidized strip clubs, card rooms and big corporations like Walmart.”

The revamped program specifically excludes strip clubs from receiving hiring tax credits and also allows hiring credits for businesses that employ welfare-to-work participants.