enterprise zone

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enterprise zone,

designated geographical district in which resident businesses are legally entitled to receive special benefits from a government, established in economically depressed areas to encourage companies to locate there. Most states enacted enterprise zone programs during the 1980s, and changes in the federal tax code in 1993 instituted tax incentives for businesses in certain locations, sometimes referred to as empowerment zones. Typical incentives offered to attract businesses to enterprise zones include tax credits, subsidized loans, and reduced regulations. Although usually associated with urban areas, enterprise zones have also been set up in rural areas. Most enterprise zones have only been marginally successful in reviving the areas in which they are located, in part because businesses located in such zones often employ workers who live outside the area. A similar program is the opportunity zone program under the Trump administration, which offers tax breaks for investments in state-designated urban, suburban, and rural census tracts that have high levels of poverty or border areas with high levels of poverty. The opportunity zone program has been criticized for including some areas that are not economically distressed.
References in periodicals archive ?
Congressional support increased through the 1980s, but it was not until 1987 that legislation even mentioning enterprise zones was enacted in Tide VII (Enterprise Zone Development) of the Housing and Community Development Act.
Currently, 35 states and the District of Columbia have enacted enterprise zone legislation and have established 3,172 enterprise zones.
He says, "the success of enterprise zones [in providing jobs and developing local communities) has been mixed.
However Congressman Donald Pease (D-Ohio) expressed concern that enterprise zones would allow wealthy individuals to shelter income in limited partnerships designed to take advantage of the tax credits.
Created 4 years ago, Enterprise Zones offer tax incentives and business rate discounts to companies who locate on them.
The latest round of funding under the Welsh Labour Government's Enterprise Zone Business Rates Scheme was announced by Economy Minister Edwina Hart.
To date, nearly 200 companies within the Enterprise Zones have benefitted from our business rates scheme and I am very pleased to announce this latest tranche of funding.
Prime Minister David Cameron said: "Approving this new Enterprise Zone in the North East is testament to the huge potential this region has to offer.
Crucially, however, the intention from the start was for the benefits of the Enterprise Zone to be felt far beyond the city centre, with the retained uplift in business rates able to support projects right across the LEP area.
COBURG - The first time city leaders here implemented an enterprise zone - in 1994, with hopes of luring businesses through tax breaks to a 217-acre parcel just off Interstate 5 - the community's reaction was as swift as it was decisive.
The Enterprise Zones did not create enough jobs andwere too costly for the public purse to be effective for the 2010s.

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