Enterprise Zone Designations

The City of Vallejo currently has two “enterprise zone” designations.

The Local Military Base Recovery Act (LAMBRA) designation provides significant state tax advantages to firms locating on Mare Island. LAMBRA incentives were established to stimulate growth and attract reinvestment and re-employment in areas that had experienced military base closures. The LAMBRA programs provides business-related tax incentives similar to Enterprise Zones such as tax incentives for hiring qualified employees, credit for sales or use tax paid or incurred on qualified property, businesses expense deduction for the cost of qualified property and net operating loss carryover. This designation, unless extended by the California Legislature, will expire on December 31, 2006. http://www.hcd.ca.gov/fa/cdbg/ez/lambra/index.html

The Historically Underutilized Business (HUB) Zone Empowerment Contracting Program stimulates economic development and creates jobs in urban and rural communities by providing federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. A principal office can be different from a company headquarters. The program resulted from provisions contained in the Small Business Reauthorization Act of 1997. The HUBZone Empowerment Contracting Program is administered by a staff in Washington, D.C. in cooperation with field staff located in SBA District Offices around the country. A full listing of those local District Office staff members, HUBZone liaisons, is available on the HUBZone web page under "Contacts." www.sba.gov/hubzone