Community Renewal Good Stories - Santa Ana

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EZ Wage Credits Steer Cycle Company in Right Direction

Santa Ana, California, EZ

A streamlined procedure to help businesses apply for EZ employment credits has a motorcycle seat manufacturing company riding high in Santa Ana, California. High End Products, which opened for business in 1998, was looking to expand just 4 years later. The timing was fortuitous: in January 2002 HUD's 15 Round II EZs had received an expanded package of tax incentives to help stimulate economic growth among EZ businesses.

Intrigued by the potential tax savings, High End left Rancho Margarita, California, in November 2002. "The combination of tax credits, business-friendly environment, and qualified labor force were the main draw for High End Products to relocate to Santa Ana," said Sonny Thomas, vice president of operations. The company's 20,000-squarefoot building is adjacent to Santa Ana's Auto Mall and the 55 Freeway.

When the facility opened, workers with the Santa Ana EZ wasted no time providing High End Products with a specially designed affidavit form to help the company verify those employees that were EZ residents. The manufacturer was able to qualify eight employees, worth $24,000 in Federal employment credits. An EZ business can earn $3,000 in tax credits each year for every EZ resident it employs.

Santa Ana's hands-on approach has helped businesses in the EZ claim some $1.9 million in tax savings since 1998. "The EZ tax credits offer Empowerment Zone residents and businesses a profitable tool to stimulate economic growth and sustainability within the Santa Ana EZ," said William Manis, former Santa Ana EZ manager.

Due in part to its recent tax savings, High End Products is looking to expand its facilities and employee base within the next year. The firm is working closely with EZ staff to maximize its savings. "It's important for a business to have the support of both its workforce and of the city," said Lars Roulund, president and CEO of High End Products. "As a business owner, it's comforting to know that the city is in my corner."

High End Products recently received a national 2004 Initiative for a Competitive Inner City award. Ranked 31st among 7,000 applicants, the firm is considered one of the most innovative and fastest-growing companies in the United States. High End Products has increased its business by 110 percent over the past 2 years: in recognition of this growth and the firm's importance to the city, Santa Ana presented High End Products with a city proclamation at its May 2004 council meeting.

For more information on the programs of the Santa Ana EZ, contact EZ Director Deborah Sanchez at (714) 647-6548.