Enterprise Zone

An Enterprise Zone is a defined geographic area in which businesses can claim certain state income tax savings and other advantages. Enterprise Zones were created in California to stimulate business investments in areas that are economically disadvantaged as well as spur job growth in areas of high unemployment. The state of California has designated 39 locations as Enterprise Zones. Two are located in the City of San Diego. One, the Metroplitan Enterprise Zone, is in Downtown:

Enterprise Zone Incentives

California Income Tax and Other Benefits:

• Tax credits may be claimed on up to half the wages paid to qualified new employees.
• Tax credits may be claimed for sales taxes paid on equipment purchased for manufacturing or production purposes.
• All net operating losses may be carried forward as a deduction in future years.
• Business equipment depreciation can be accelerated, up to a limited amount.
• Low-income employees can claim their own personal income tax credits.
• The state will give priority for Industrial Development Bond applications.
• Lenders (both commercial and private) may deduct net interest income on loans to Enterprise Zone businesses.

For more information on Enterprise Zone benefits and a list of streets and block numbers within the zones visit, the California Technology, Trade & Commerce Agency web site.

City of San Diego Benefits:

• The Enterprise Zone Job Referral Service will assist with recruitment and pre-screening for new employees at no cost and will provide the necessary verification for you to claim tax credits on their wages.
• City staff can expedite permit applications and serve as liaison with other City departments.
• Certain development fees may be reduced or waived.
• New development projects located in the City's Enterprise Zones are eligible for direct assistance by the City. Assistance includes help in determining project application requirements, fast track permit processing, liaison help in the development process.
• The City can provide an exemption from urban impact fees (Metropolitan Enterprise Zone only) and housing trust fund fees.

Downtown Enterprise Zone Location

The Metropolitan Enterprise Zone is located south and east of downtown, adjacent to the bay.

For a list of streets and block numbers within the zones, visit the California Technology, Trade & Commerce Agency web site.

Contact Information

For more information, contact the City's Economic Development Division.

For assistance or information on recruitment or job training, call the Enterprise Zone Job Referral Service at (619) 424-0233.