The legislation signed in San Diego, including Senate Bill 90 and Assembly Bill 93, would significantly scale back such hiring credits, instead providing a sales tax exemption for manufacturing and biotech research companies and other tax credits negotiated on a case-by-case basis with the administration.
The Democratic governor and labor unions criticized the existing enterprise zone program as wasteful and ineffective. A modified version of Brown's proposal to overhaul the program was approved by the Legislature after Brown negotiated a series of changes, including extending to 10 years from five years a carry-forward provision for hiring credits under the existing enterprise zone program.
"This legislation will help grow our economy and create good manufacturing jobs," Brown said in a prepared statement. "Through our great university system and through the companies we have, California can build on the strength of intellectual capacity. Let's get to work!"
PHOTO: Gov. Jerry Brown, center, visits Takeda, a biotech firm, in San Diego, where he signed Assembly Bill 93 and Senate Bill 90 overhauling the state's enterprise zone program on Thursday, July 11, 2013. U-T San Diego/Carolyne Corelis