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Merced EZ Expands

HCD has approved an expansion for the Merced County Enterprise Zone. The press release reads:

MERCED – The California State Department of Housing and Community Develop-ment (HCD) has approved the expansion request of the Merced Regional Enterprise Zone (MREZ) by an additional 1,877 acres. MREZ is now comprised of 44,608 acres within the County of Merced and the cities of Atwater, Dos Palos, Gustine, Livingston, Los Banos and Merced. With this approval by HCD, the expansion area shall be ac-corded all of the enterprise zone tax benefits.

The purpose of the enterprise zone is to improve economic conditions for businesses located within the zone to create jobs and attract private investment within commercial/industrial and permitted agricultural zoned areas. Businesses located at qualified ad-dresses are eligible for a variety of tax saving benefits. In particular, businesses can earn up to $37,440 or more in state tax credits for each qualified employee hired.

“I’m pleased to see that more businesses in Merced County will now be eligible to re-ceive state tax benefits,” stated Mark Hendrickson, Director of Merced County’s De-partment of Commerce Aviation and Economic Development. “In challenging times like these, economic incentives help our local businesses retain and create jobs.”

The MREZ was originally established in 2006 by HCD and received its final designa-tion on December 17, 2006. Since then, the MREZ has helped create or retain 5,490 jobs in Merced. California’s Enterprise Zone program was established in 1984 as a means to stimulate economic activity in depressed areas of the State and to create job opportunities for Californians.

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