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"The savings have been significant," said Universal Framing President Mark Gottlieb. "As a company, we save over six figures each year."
But for local businesses benefiting from the enterprise zone tax incentives, there's some good news and some bad news.
On Thursday, three Santa Clarita shopping centers became eligible for the perks. However, proposed legislation might make those tax breaks more difficult to get.
Granary Square, Bridgeport Marketplace and Baywood at Bridgeport are now eligible for enterprise zone tax credits, said Santa Clarita Administrative Analyst Denise Lellan.
Legislators, however, are considering changing the qualifications for employees. This could jeopardize local businesses' ability to get tax credits, city officials said.
Assemblyman John Perez, D-Los Angeles, is sponsoring an amendment that would require businesses to hire full-time employees and give their employees health benefits to receive the full tax credits.
According to an analysis of the bill from Perez's office, the changes would reward businesses that "provide quality employment in genuinely economically challenged areas."
Messages left at Perez's office Tuesday and Wednesday were not immediately returned Thursday.
Santa Clarita Marketing and Economic Development Manager Jason Crawford said the amendment would "hamstring" local businesses.
"The intent of the enterprise zone is for business growth and expansion," Crawford said. "This (amendment) would strangle the potential benefit of the enterprise zone tax credits."
Crawford said the hiring requirements for businesses that want to get a tax credit are already restrictive. The amendment would make it "exponentially" more difficult for businesses to get tax credits, he said.
The amendment requires businesses to provide to the Department of Housing and Community Development annual reports about their employees who qualify for tax credits.
The enterprise zone already offers incentives for hiring employees full time, Crawford said. To receive the full $3,700 tax credit, companies need to hire employees who need assistance the most.
According to the enterprise zone voucher on the city's Web site, businesses need to hire employees who, among other things, need government assistance, are "economically disadvantaged" or are military veterans.
The city began offering enterprise zone tax credits in July 2007, Crawford said. About 98 percent of non-residential businesses are eligible to receive enterprise zone tax credits, he said.
For more information, visit http://santaclaritaenterprisezone.com/
