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Evaluation Of California's Enterprise Zones, California Research Bureau

California Agencies

Enterprise zones are California's second most important tool for attempting to resuscitate urban areas (after redevelopment). Businesses get generous tax benefits for locating and hiring in these areas. There are now 40 enterprise zones in the state, from Eureka to Calexico in North-South space, and from Central Los Angeles to Porterville, Delano, and Thermal in urban size hierarchy. The legislature regularly considers bills proposing to expand the number of zones. This experience costs the taxpayers over $70 million per year.

So, do they work? A reasonable test would be whether there was more job growth in enterprise zones than in …