What Is It?
The Enterprise Zone program was developed by the California State Legislature to provide targeted areas with a means to stimulate business and employment growth. The City of Oakland received a 15-year "Enterprise Zone" designation on September 28, 1993 for large portions of the City including the Downtown, Airport, Port, and several industrial and manufacturing areas. Oakland businesses in the Zone - from large manufacturing companies to small neighborhood restaurants - can reduce their state taxes by taking advantage of Enterprise Zone benefits

Where Is It?
The Oakland Enterprise Zone is one of the largest urban Zones in California, encompassing more than 27 square miles and over 10,000 businesses. Within the Zone's borders are Class A institutional quality office towers and unique retail locations, as well as affordable manufacturing and commercial sites. The Zone is also within the immediate access of five major freeways, the Port of Oakland, the Oakland International Airport, plus a wide range of educational facilities, housing and other amenities. These assets add up to an increasingly powerful ability to aid current businesses and attract new companies, jobs and investment.

How Can You Use It?
The Enterprise Zone program offers businesses that reside within its borders the opportunity to reduce their State business income tax through a variety of tax benefits. Businesses located in the Enterprise Zone are automatically eligible for Zone benefits. There is no certification process. For example, a business located in the Enterprise Zone can receive tax credits every time it hires an eligible new employee or purchases qualified new machinery or pollution control devices. Tax credits are also available to lenders who make loans to businesses in the Zone, and to low income employees who work in the Zone

The State Tax Incentives Are:

• A hiring income tax credit
• A net operating loss carryover
• A sales and use income tax credit
• A business expense deduction for business property
• A net interest deduction for lenders

 Click here for a brief overview of these incentives.

The information on this page is intended for general use. For more information, contact Susana Villarreal, Enterprise Zone Coordinator, at (510) 238-7794 or Email: Susana Villarreal.