Brown administration officials released a new set of rules Friday restricting how employers claim tax credits for hiring workers in distressed areas.
The proposal saves an estimated $60 million through June 2014 and $310 million in the first five years, according to the Department of Housing and Community Development.
Under the state's enterprise zone program, employers can receive tax credits for hiring employees who live or work in areas with high unemployment. The credits are as large as $37,440 over five years per employee.
Brown took dead aim at the program in his 2011 budget proposal, asking lawmakers to eliminate enterprise zones the same way they ultimately did redevelopment agencies. Lawmakers resisted that call, and Brown is now seeking to curb what he considers the worst abuses. The state gave out $732 million in credits through the program in 2010.