Debate Heats Up Over Gov. Brown's Proposal to End California's Enterprise Zone Tax Credit; Critics Say Repeal Is Unconstitutional

Gov. Jerry Brown (D) has proposed eliminating California's enterprise zone tax credits, to save $924 million over the next 18 months. Under his proposal, businesses would no longer be able to earn and claim new credits, and they would forfeit credits they have earned in past years but have not yet claimed on their tax returns. Critics say the proposal is bad public policy, would violate the Due Process and Contracts Clauses of the U.S. Constitution and are particularly concerned about the governor's plan to take away the credits retroactively.