Desert Communities Enterprise Zone Cathedral City - Desert Hot Springs - Palm Springs
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COMMITMENT
LETTER
Link for commitment letter


We need your help!
To be successful in obtaining the Desert Cities Enterprise Zone designation, we need to demonstrate a three-way partnership between the State of California, our local cities, and the private sector businesses. As businesses in the proposed zone, we are asking you to commit to providing local incentives to business expansion. Our Goal is to raise $350,000 in private sector cash/in-kind commitments.


Please download the commitment letter now, and follow the instructions for submittal.
Which jurisdictions comprise the Desert Cities Enterprise Zone? The cities of Cathedral City, Desert Hot Springs, and Palm Springs have joined forces to prepare a multijurisdictional application to the state to obtain Enterprise Zone designation. Only two designations will be made.

Why are Enterprise Zones important? California's Enterprise Zone program was established in 1984 to stimulate business investment in depressed areas of the State and create job opportunities for Californians. Today, businesses and workers both continue to benefit from the program.


Businesses located within a California Enterprise Zone are eligible for substantial State tax credits and benefits including:

  • HIRING TAX CREDIT - State tax credit of $37,000 or more over five years for each qualified employee hired.


  • SALES OR USE TAX CREDIT - State tax credit for sales and use taxes paid, up to $20 million per year, on qualified machinery and machinery parts purchases.


  • INCREASED EXPENSE DEDUCTION - Accelerated expense deductions for certain depreciable property.


  • NET OPERATING LOSS CARRYFORWARD - Up to 100 percent net operating loss deduction and a 15-year carry forward.


  • NET INTEREST DEDUCTION FOR LENDERS - Net Interest Deductions for lenders on loans made to firms within an Enterprise Zone.


  • STATE PREFERENCE POINTS - Enterprise Zone companies can earn preference points on state contracts.


    • HOW CAN I HELP?
    To be successful we need to demonstrate a three-way partnership between the State of California, our local cities, and the private sector businesses. As businesses in the proposed zone, we are asking you to commit to providing local incentives to business expansion. Our Goal is to raise $350,000 in private sector cash/in-kind commitments. Here some examples:

    Accountant – free or reduced cost to review how the hiring tax credits could help a company’s bottom line or sponsorship of an online Enterprise Zone calculator

    Medical Practitioner – free or reduced cost of employee screening for Enterprise Zone companies

    Lenders – reduced or waiver of packaging fees

    PR/Advertising Firms – free or reduced cost of graphic services, marketing materials

    The key is to be innovative and make a solid commitment to match the State’s incentive program. In order to obtain the Enterprise Zone designation, we need your help:

    1. Download the sample letter.
    2. Prepare the letter, including quantifying your commitment to the zone (i.e. rate x hours=Annual commitment).

    “With only two designations open we need our businesses to step up and show the state of California we are a serious contender for an Enterprise Zone designation.” - Hal Joseph, Local Enterprise Zone Consultant

    For more information, contact info@desertcitiesenterprisezone.org or call 760.702.4400.

    IN THE NEWS
    Public Record (July 13, 2010)
    Link for Public Record article


    Participants in Desert Cities Enterprise Zone
    City of Cathedral City
    City of Desert Hot Springs
    City of Palm Springs


    For more information, contact info@desertcitiesenterprisezone.org or call 760.702.4400
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