Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — California Enterprise Zone Program (CAEZ) Legislative Update webcast (May 2011)
22 slides from Automatic Data Processing's conference presentation, May 19, 2011
Slide 1: California Enterprise Zone Program (CAEZ) Legislative Update – Where Do We Go From Here?
California Enterprise Zone Program (CAEZ) Legislative Update – Where Do We Go From Here? An ADP Webcast Thursday, May 19th 1 pm Eastern Time 1 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 2: Housekeeping Items
Housekeeping Items This is one of a number of complimentary webinars that ADP offers to tax and finance professionals each year. Today’s webinar will last 60 minutes, ending at 2 pm Eastern time. The last 10 minutes of today’s program have been reserved for Q&A. You can download a PDF copy o
Slide 3: CPE Credit
CPE Credit Are you planning to apply for CPE credit for attending today’s webinar? A. Yes B. No C. Not Applicable NASBA (National Association of State Boards of Accountancy) requirements for receiving CPE Credit: • Log in from same e-mail address that you used to register • Stay for the full hour
Slide 4: About ADP
About ADP Experts in automating corporate business processes Listed on NASDAQ: ADP Fortune 300 company Experts in automating business processes such as payroll, HR benefits administration, and helping nearly 6000 companies maximize their capture of tax credits and business incentives 60 year
Slide 5: Today's Agenda
Today’s Agenda Introductions California Enterprise Zone Program Program Overview Background: Budget & Legislation Capitol Climate Timeline of Events Coalition Activity What Happens Next Questions & Answers 5 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Informa
Slide 6: Introductions: Today's Panel
Introductions: Today’s Panel Chris has been working in Sacramento on the California Enterprise Zone Program for the past Chris Micheli fifteen years. He has handled a dozen successful EZ Designation applications and has Aprea & Micheli worked on all of the legislation and regulations affecting the E
Slide 7: Polling Question 1
Polling Question 1 How long has your company participated in the California Enterprise Zone program? A. Never B. 1 – 2 years C. 3 – 5 years D. 6 – 10 years E. Over 10 years F. Don’t know/not applicable 7 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 8: Program Overview: Credit Basics
Program Overview: Credit Basics Hiring Credit – Encourage hiring disadvantaged individuals Business must operate in an enterprise zone (42 designations) Business must hire a “qualified employee” within zone effective dates Hiring credit equals a percent of “qualified wages” paid over 5 years •
Slide 9: Polling Question 2
Polling Question 2 What is your primary source of information on California Enterprise Zone activity? A. Internal Government Relations Team B. Tax Consultant Updates C. Tax Research Company Publications and Updates D. Public Media Sources E. I have no source of information on Enterprise Zone activit
Slide 10: Background: California Budget
Background: California Budget Entering 2011, California faced a state debt approaching $300B, exacerbated by a $28B budget gap Newly elected Governor Jerry Brown promised a balanced budget On January 10, 2011, Governor Brown announced his budget proposal, which included eliminating the Enterpr
Slide 11: Polling Question 3
Polling Question 3 Given the business climate in the state, what are your company’s plans for growth in California? A. We have plans to expand our California operations or relocate to the state. B. We have plans to reduce our California operations or relocate out of the state. C. We do not have plan
Slide 12: Background: Years of EZ Scrutiny
Background: Years of EZ Scrutiny Recent Years • EZ program under repeated threats • Adverse legislation carried by influential legislators • Strongly opposed by labor unions • Critical studies by LAO (Legislative Analyst’s Office) and PPIC (Public Policy Institute of California) Last Few Years •
Slide 13: Capitol Climate in Sacramento
Capitol Climate in Sacramento What is happening in Sacramento? • Political Climate • Feeling among legislators and interest groups • Enterprise Zones: A history of hearings and negotiations Key players and their positions in the debate • Enterprise Zone Opponents — Retro Vouchering — TEA’s • Ent
Slide 14: Timeline of Legislative Events - 2011
Timeline of Legislative Events - 2011 January • Governor Brown Proposes Elimination • Budget Deficit • Momentum of adoption of repeal • Coalition formed March • Initial budget deal passed • Governor’s revenue raising proposals not adopted • EZ lobby days held May • Governors May Revise Issued
Slide 15: May Revise: Enterprise Zone Reform
May Revise: Enterprise Zone Reform May 16, 2011 Governor Brown announces his revised budget proposal Impact on Existing Credit Pre-2011 Hires only Voucher Application Deadline 5-year limit on carry-forward New Enterprise Zone Credit Tax years beginning on or after Jan. 1, 2011 Base
Slide 16: Coalition Activity
Coalition Activity Who is involved? • Over 500 Members • Communities to Save Enterprise Zones (CSEZ) • California Employment Opportunity Network (CEON) • California Association of Enterprise Zones (CAEZ) • Businesses, Trade Associations, Local Governments Coalition Efforts • Grassroots Campaigns
Slide 17: Polling Question 4
Polling Question 4 Is your company actively involved in the ongoing efforts to protect the California Enterprise Zone program? A. Yes, we are involved. B. No, but we want to become more involved in these efforts. C. No, and we do not plan to become more involved at this time. D. Don’t know/not appli
Slide 18: What Happens Next?
What Happens Next? Possible Budget Scenarios Is EZ reform an option or even desirable? AB 231 – Enterprise Zone Reform Bill • 3-year credit instead of 5-year credit • Eligible wages capped at 180% of min wage rather than 150% of minimum wage • Wage limit for TEA qualification • 50% limitation
Slide 19: What Happens Next?
What Happens Next? Other bills of interest • SB342 — Contingency Fee Prohibition on Tax related matters • SB364 — Penalty for companies who take tax credits and then have a net decrease in CA employment of 10% or greater — Currently for new incentives enacted after 1-1-2012 What next? • Continui
Slide 20: Questions & Answers
Questions & Answers Questions? Chris Micheli Aprea & Micheli Partner, Legislative Advocacy LaRae Pieroni ADP Tax Credit Services Director, Business Incentives West Region Practice Leader larae_pieroni@adp.com 20 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.
Slide 21: Thank You for Joining Us Today
Thank You for Joining Us Today… For information on any of the ADP Tax Credit products or services referenced during today’s webinar: Phone 800-CALL-ADP or visit www.taxcredits.adp.com To listen to previous ADP Tax Credit Legislative series webinars or review recent Federal and State tax credit
Slide 22: Webinar Program Survey
Webinar Program Survey How are we doing? We appreciate your feedback on this webinar, which will be used as we plan future webinars in our Tax Credits & Business Incentives Legislative Updates series. 22 ©2011 Automatic Data Processing, Inc. Proprietary and Confidential Information.