Hello,

With regard to the elimination of enterprise zones, AB 93 provides that the net interest deduction may be applied to interest received before January 1, 2014 and that the deduction will expire for taxable years beginning on or after January 1, 2014. Does this mean we can still receive credit for new loans booked in 2013, for which we receive interest during the year, or can we only receive credit for existing loans on the books as of the date the Governor signed these into law?

From AB 93:
SEC. 19. Section 17235 of the Revenue and Taxation Code is amended
to read:
17235. (a) There shall be allowed as a deduction the amount of
net interest received by the taxpayer before January 1, 2014, in
payment on indebtedness of a person or entity engaged in the conduct
of a trade or business located in an enterprise zone.
(b) A deduction shall not be allowed under this section unless at
the time the indebtedness is incurred each of the following
requirements are met:
(1) The trade or business is located solely within an enterprise
zone.
(2) The indebtedness is incurred solely in connection with
activity within the enterprise zone.
(3) The taxpayer has no equity or other ownership interest in the
debtor.
(c) "Enterprise zone" means an area designated as an enterprise
zone pursuant to Chapter 12.8 (commencing with Section 7070) of
Division 7 of Title 1 of the Government Code.
(d) This section shall cease to be operative for taxable years
beginning on or after January 1, 2014, and shall be repealed on
December 1, 2014.

We were given credit for Enterprise Loans as long as they still had a Community Develpopment "hook". We were not given credit for 2014 Enterprise Loans.