***F O R    I M M E D I A T E    R E L E A S E***

Contact: Fran Aguilera
Enterprise Zone Manager
Telephone: (209) 468-3512
(not for publication)

State of California Grants Final Designation for the
San Joaquin County Enterprise Zone

San Joaquin County
(9-15-09)…The State of California has granted final designation for the San Joaquin County Enterprise Zone. The Zone has been operating under conditional designation since June 2008. Already one of the largest Enterprise Zones in the State, this final designation expands the Zone to 656 square miles, which includes over 55 square miles of commercial and industrial property.

“The Enterprise Zone is a crucial element in improving our County’s economic condition”, stated Enterprise Zone Manager Fran Aguilera. “By assisting businesses to create good paying jobs, the financial recovery of San Joaquin County will be greatly accelerated.”

The California Enterprise Zone Program targets economically-distressed areas using special State and local incentives to promote business expansion and job creation. By encouraging entrepreneurship and employer growth, the program strives to create and sustain economic expansion in California communities. The San Joaquin County Enterprise Zone is a partnership between the County and the cities of Stockton, Lodi, Manteca, Lathrop and Tracy.

Businesses located within Enterprise Zones are eligible for substantial tax credits and benefits, for example:

• Up to $37,440 in State tax credits for each qualified employee hired
• Sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts
• Upfront expensing of certain depreciable property
• Lenders to Zone businesses may receive a net interest deduction
• Apply unused tax credits to future tax years, stretching out the benefit of the initial investment
• Earn preference points on state contracts
• Carry forward up to 100% Net Operating Loss

For more information, contact the Economic Development Association at 468-3615.