San Diego Establishes Downtown 'Zone' With Tax Breaks For Businesses
The San Diego Regional Enterprise Zone, designed to get companies to move into the area by providing tax incentives, was given the green light by the state of California to expand into northern parts of San Diego, Mayor Jerry Sanders announced today.
The zone, which includes the cities of San Diego, Chula Vista and National City, and the Port of San Diego, will add industrial parks in Kearny Mesa, Mira Mesa and Rancho Bernardo, as well as the eastern side of Chula Vista, Sanders said.
Companies which move into the area within the zone can claim state payroll tax credits, along with incentives to purchase certain manufacturing, data processing and communications equipment.
"Enterprise Zones are crucial because they are one of the most valuable economic development tools we have to attract, and in some cases, retain businesses here in the region, and the state for that matter,'' Sanders said.
The city's promise to seek an expansion of the zone was critical to the decision by four major companies -- ATK, Kyocera, Soitec, and Shire -- to move to San Diego, the mayor said. Combined, they will invest $312 million in the region and create 866 jobs, mostly in manufacturing, he said.
Since the zone was created five years ago, 920 companies, employing nearly 32,000 workers, have taken advantage of the tax credits, he said.