On Friday, the FTB held an Interested Parties Meeting to listen to public comments regarding implementation of the Combined Reporting Group Credit Assignment for credits including the Enterprise Zone tax credits.  The FTB will continue to invite and analyze comments from the public while it fine tunes the methods by which the California enterprise zone tax credits can be assigned among companies.  The FTB issued a draft form 3544 for assignment of the tax credits and expects to update the FAQs on the website in the next two weeks in response to the issues raised at Friday’s meeting.  The current FAQ is posted on the FTB’s website here.

Today, the FTB is holding an Interested Parties Meeting to discuss implementation of the new rule allowing companies to assign credits to an affiliate.  As proposed, the FTB intends to impose the assignor’s usage limitations on the assignee.  The FTB also proposes that the assignee can only use the assigned credits to offset income generated from the same zone that generated the credits.  The assignee will be able to start using assigned credits in for the 2010 tax year.

If you want to hear how this can affect your business, please contact us directly.

On March 3 both the Los Angeles Harbor EZ and the Madera EZ expired.  On April 4 the Sacramento Florin Perkins EZ also expires. All three  jurisdictions are applying for new zone designations.  The deadline for submitting applications is March 27.

On March 16, 2009, the San Bernardino Valley Enterprise Zone (SBVEZ) announced this week that the California Department of Housing and Community Development granted final designation to the zone for a 15-year period.