City of Santa Ana, Downtown Orange County
Advisory: SANTA ANA’S FEDERAL EMPOWERMENT ZONE HIRING CREDIT RESTORED
SANTA ANA- By a voice vote of the U.S. Senate Finance Committee yesterday, an amendment was approved which will allow Santa Ana to restore funding for Federal Empowerment Zone Hiring Credit retroactive to January 1, 2014 and to remain in force through December 31, 2015.
“This program is a powerful tool to promote economic revitalization, not only in Santa Ana, but in targeted distressed communities throughout the nation. More than 200 Santa Ana businesses have used the hiring credit,“ said Mayor Miguel Pulido.
The City was alerted to the potential amendment vote earlier this week and, through the leadership of Mayor Pulido and the efforts of staff, the City was able to contact Senator Dianne Feinstein and other cities and leaders who championed our economic development agenda.
“This is great news for Santa Ana. This credit is one of the most valuable economic development tools available to assist our businesses and create jobs for our residents,“ added City Manager David Cavazos.
The result of this amendment will provide our businesses with a $3,000 federal tax credit for employing Santa Ana residents who reside in the designated Empowerment Zone boundaries. Past year’s records indicate that more than 2,000 residents have been hired locally with an estimated $6 million in tax savings that will stay in the community.
The Federal Empowerment Zone (FEZ) is a 10-year designation that provides federal funding and federal tax incentives to the Santa Ana FEZ community. Covering a four square mile area of Santa Ana, the FEZ provides both business and residents services to the FEZ community.
As of January 1, 2002, any Santa Ana business located within the Santa Ana Federal Empowerment Zone (FEZ) who hires or currently employs a resident of the FEZ may earn an annual federal credit up to $3,000 per qualified employee. The City of Santa Ana received a Round II Federal Empowerment Zone (FEZ) designation in 1999. Over the past decade, the City’s FEZ has invested $25.6 million in programs and resources vital to the City’s growth. This investment has generated almost $218 million in additional financial resources and in-kind support from a wide range of private, public, non-profit and individual sources.
For more information, contact Deborah Sanchez at (714) 835-7330.
Contact Information:
Deborah Sanchez
Santa Ana Workforce Investment Board
714-565-2621
dsanchez@santa-ana.org
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This amendment has a long way to go before it is signed into law. It must first be voted on by the full Senate, then voted on and passed by the House of Representatives and then signed into law.by the President.
The “celebration” is way pre-mature. Apparently someone is not familiar with how US legislation works.