State Enterprise Zone

The Enterprise Zone Act and the Employment and Economic Incentive Act, which became effective on March 20, 1984, established the mechanisms for designating economic development areas referred to as Enterprise Zones and Program Areas in California. Special tax incentives are available for entities and individuals that operate or invest in a business located within designated Enterprise Zones or Program Areas. The law provides for the designation of 39 Enterprise Zones (per Government Code Section 7073). All 39 Enterprise Zones have been designated. See "Enterprise Zone Locations and Designation Dates" section (d). EZ designations are effective for 15 years. An additional 5-year extension may be allowed if the EZ meets certain criteria. Extensions are approved by the California Trade & Commerce Agency, via an application process.