LAMBRA
Local Agency Military Base Recovery Areas Enterprise Zone Program
What is an Enterprise Zone?
California's Enterprise Zone program was established in 1984 to stimulate business investment in depressed areas of the State and create job opportunities for Californians. Today, businesses and workers both continue to benefit from the program. California communities received these designations from the State of California through a competitive process. While Zones have similar goals for improving the economic vitality of their communities, each is unique in the local incentives and special assistance they provide to the businesses located within the zone boundaries.
What is a LAMBRA Enterprise Zone?
The Local Agency Military Base Recovery Area (LAMBRA) is a type of Enterprise Zone that is located in an area that has experienced a military base closure. LAMBRA designations are aimed at helping these communities attract new business and private investment to compensate for lost jobs and revenue.
Southern California Logistics Airport (SCLA), the former George Air Force Base, closed in 1992. On February 1, 1996, SCLA was designated a LAMBRA Enterprise Zone. Typically, LAMBRA Zones expire after eight (8) years. However, legislation is under review to determine a more accurate start date for LAMBRA’s, thereby making the expiration date undetermined at this time.
LAMBRA Enterprise Zone Benefits
The state offers four tax credits that reduce the cost of hiring new employees and investing in equipment in the LAMBRA Enterprise Zone. These savings apply during the life of the LAMBRA Enterprise Zone.
State business incentives include:
Hiring Credit Information
Sales or Use Tax Credit
Business Expense Deduction
Net Operating Loss (NOL) Carryover
Eligibility
If a company is located and operating in the LAMBRA, the business is eligible to take advantage of the State’s tax incentives. Businesses already in the LAMBRA Zone can qualify for benefits, as well as new businesses relocating or expanding into the SCLA LAMBRA Zone. To find out if you are in the LAMBRA Zone, contact the City of Victorville’s Economic Development Department.
How to Receive Benefits
With the exception of the Hiring Tax Credit, most of the State tax incentives require no work on the business’ part until tax time. However, good record keeping throughout the year will help. Obtain the appropriate forms from the Franchise Tax Board (www.ftb.ca.gov) and attach them to the businesses income tax statement or make sure that the business’ tax preparer is aware that the business is operating in a LAMBRA. Additionally, review the regulations on the Sales and Use Tax Credit, Business Expense Deduction and Net Operating Loss Carryover to become familiar with what is required and how to maximize savings.
The Hiring Tax Credit is the only credit that requires a signed voucher by the LAMBRA office. Contact the City of Victorville’s Economic Development Department for more information on how to receive the Hiring Tax Credit.
Quick Links
Frequently Asked Questions about LAMBRA (PDF - 358kb)
Related Forms and Publications (PDF - 158kb)
Additional Links (PDF - 159kb)
If you have additional questions about the LAMBRA Enterprise Program, please contact:
Lesyenia Marin
City of Victorville, Economic Development Department
14343 Civic Drive, Victorville, Ca 92392
P: (760) 955-5032
lmarin@ci.victorville.ca.us
