Enterprise zones are located in blighted areas and businesses operating within them can claim tax credits from the state. Craig Johnson is President of the California Association of Enterprise Zones. He says Brown's changes would essentially eliminate the state's 40 Enterprise Zones. He says the state already has high taxes and high regulations and eliminating tax credits won't help.
"There are businesses that, obviously, when you operate, sometimes, on slim margins, this is enough to push you over the edge to say, wow this is kind of tough. Maybe we should revisit that plan we had to move to Nevada," Johnson says.
Critics of the 29-year-old program say it's outdated and doesn't create enough jobs. Johnson says he's hopeful he has enough legislative support to fend off Brown's proposal.