Local CPA honored as Cal Chamber “2007 Small Business Advocate of the Year”

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As reflected in the attached Cal Chamber press-release, Blake Christian was selected as one of five state-wide recipients of the “2007 Small Business Advocate of the Year”, awarded earlier this month in Sacramento at the California Chamber of Commerce’s Annual Legislation Summit.

Blake received this designation as a result of his 2006 and 2007 efforts in working with Chambers of Commerce, business owners and trade groups throughout the state, as well as State Legislators, to preserve the California Enterprise Zone (EZ) tax benefits for those businesses, employees and lenders operating in some of the most economically challenged regions throughout the state. Blake’s involvement with the C-17 “Red Team” and Orange County Treasurers Advisory Committee were also factors in the award.

According to Blake, “The California EZ program is one of the very few bright spots in the California tax code and is desperately needed to level the playing field in the highly competitive business arena. With technology and efficient logistics systems, businesses are fairly free to choose to operate in any state or country, and taxes are a significant factor in that decision”.

California has some of the highest marginal tax rates in the country for both businesses and individuals. C Corporations can be taxed at rates as high as 8.84% (banks 10.84%) and highincome individuals can pay tax at rates as high as 10.3%. In surveys, California consistently ranks at the bottom of “Business Friendly States” and the top of the “Highest Taxed State”. California’s high tax rates and aggressive taxation of multi-national corporations has seen a steady stream of companies exit to lower-tax jurisdictions.

Blake is a Certified Public Accountant (CPA) and Tax Partner in the Long Beach office of Holthouse, Carlin & Van Trigt LLP, the largest CPA firm headquartered in Southern California. Blake is a Cypress resident and a graduate of CSULB (MS Accounting/ Finance – 1980) and USC (Masters in Business Taxation – 1985).

Approximately 50% of the 39 state Enterprise Zones were scheduled to expire towards the end of calendar 2006 and early 2007. This would have resulted in hundreds of millions of dollars of tax increases for businesses operating in these expiring EZ’s. Expiration of these EZ’s would have also jeopardized jobs within these regions. Local EZ’s include: portions of Los Angeles, San Pedro, Wilmington, Long Beach, Compton, Santa Ana, and portions of San Diego and Riverside Counties.

Blake developed a close working relationship with Kyla Christoffersen of Cal Chamber and together they formed a strong coalition of trade groups and business owners, who spent significant energy educating key legislators throughout the state of the need to preserve the EZ program, which was being challenged by a number of legislators and other groups. Ultimately, with the full backing of Governor Schwarzenegger, the program was preserved and actually expanded to 3 new Zones (including Compton) – allowing California businesses to continue to save over $300 million annually.

The California EZ program offers existing businesses, as well as newly formed businesses, a significant tax advantage in return for operating and hiring economically challenged employees in business districts which are surrounded by economically challenged residential neighborhoods. The advantages come in four forms:

  1. Employer Hiring Tax Credits – Up to $35,000 per “qualified” employee over a 5-year employment period. The first year credit can exceed $11,000 during the first 12-month employment period. There are at least 19 ways for employees the obtain credit certification, including living in local neighborhoods, recently laid off or receiving unemployment benefits, food stamps or other government assistance, Vietnam era or recently discharged Veteran, ex-offender, etc. Generally 20% to 50% of an employer’s workforce will qualify for hiring credits.
  2. Employee Level Tax Credits – Single employees making less than $16,000 annually or married employees making less than $32,000 can obtain an employee-level credit of up to $525 per year, simply for working in an EZ. This credit works well for part-time employees or single wage earners.
  3. Equipment Sales/ Use Tax Credit – The credit is tied to the sales/ use tax paid on specified equipment, so it ranges from 7% to 8.75%. The credit applies to tax paid on most computers, copiers, scanners and other technology equipment. In addition, equipment used in manufacturing, processing or research and development will qualify for the credit. Finally, pollution control and energy conservation equipment will qualify for the credit.
  4. Lender’s Net Interest Deduction – Banks and other lenders that loan money to EZsituated businesses can generally claim an exemption on the net interest earned on such loans. Therefore, banks are encouraged to loan funds to such businesses. In addition, these loans help allow banks to meet federally mandated Community Redevelopment Agency (CRA) lending practices.

The net impact of these EZ benefits is a dramatic reduction in the business tax burden, and in the case of EZ businesses operating as an S Corporation, Partnership or LLC, the equity owners also experience significant reductions as a result of the credit flowing out to the owners.

ABOUT HCVT

HCVT is a full service CPA firm that was formed in 1991 and currently has 23 partners and a total professional and administrative supportive staff of over 230. HCVT’s clients include domestic and international real estate developers/managers, manufacturers, distributors, service entities, hi-tech and entertainment concerns and high net worth individuals. With six offices throughout Southern California, HCVT is uniquely positioned to offer both business clients and employees convenient access to meet their needs from start-up to disposition/ retirement. HCVT is a nationally ranked CPA firm, appearing on numerous “Top 100” lists and was ranked as one of the “Top 20 Best Managed CPA Firms” in the U. S. HCVT is also a member of Moore Stephens International Limited (MSIL), a worldwide organization consisting of over 330 leading independent accounting and consulting firms with close to 600 offices in over 90 countries with total worldwide revenues of $1.54 billion. HCVT’s connection allows them to offer the resources of a national firm with local firm responsiveness and personal attention. HCVT believes this unique relationship makes them better positioned to help their clients meet challenges, as effectively as possible. “With Moore Stephens, you will receive the local, hands-on attention you deserve with the global resources you need.”

For more information regarding HCVT log onto www.hcvt.com or call (562) 590-9535.

May 21, 2007 05:44 PM Eastern Daylight Time

Five Receive California Chamber of Commerce 2007 Small Business Advocate of the Year Award

Recipients Honored at CalChamber Business Legislative Summit

SACRAMENTO, Calif.--(BUSINESS WIRE)--The California Chamber of Commerce honored five small business executives Monday with its “2007 Small Business Advocate of the Year” award, recognizing recipients for their advocacy efforts on behalf of small businesses.

The CalChamber presented the awards at a luncheon before approximately 600 attendees at the CalChamber Business Legislative Summit in Sacramento.

2007 Small Business Advocate of the Year winners are:

  • Blake Christian, CPA, Partner, Holthouse Carlin & Van Trigt, LLC, Long Beach
  • Jamil Dada, Vice President, Provident Bank, Moreno Valley
  • Timothy L. Fowler, Owner/Sole Proprietor, Betterton Mason and Wyatt, Lockeford
  • Greg Lippe, Managing Partner, Lippe, Hellie, Hoffer & Allison LLP, Woodland Hills
  • Jim Schmidt, Banker and Attorney (retired), La Mesa

“Small business growth is crucial to California’s jobs climate,” said CalChamber President Allan Zaremberg. “All the small business advocate winners have demonstrated leadership abilities, not only in their own businesses, which is a major accomplishment, but also in working to promote policies that will help other small businesses thrive.”

The awards presentation is sponsored by the CalChamber. Honorees are nominated by local chambers and selected by a task force comprised of members of the CalChamber Small Business Committee. The criteria used in the selection process include taking leadership roles in or working on federal, state or local ballot measures, testifying before the state Legislature and representing a local chamber of commerce before local government.

(See Following Information on Award Winners)

BLAKE CHRISTIAN, CPA, PARTNER, HOLTHOUSE CARLIN & VAN TRIGT, LLC, LONG BEACH

In nominating Blake Christian, Randy Gordon, president/chief executive officer of the Long Beach Chamber of Commerce, described him as “an active decision-maker” who “dedicates countless hours to our advocacy and overall efforts” and who “has contributed to saving California business literally millions of dollars….He builds relationships and serves his community as if the issue depended upon him alone….Blake exemplifies the very definition of a small business advocate.”

During 2006, Christian worked closely with Kyla Christoffersen, CalChamber policy advocate, to bring together a number of trade groups into a coalition to address various tax issues facing California businesses. Their primary focus was to analyze legislative proposals that could have drastically altered the California Enterprise Zone (EZ) program. The final outcome of the coalition’s efforts was an increase in EZs from 39 to 42 and a redesignation of 19 existing EZs for an additional 15 years. Christian continues to work with the coalition and local legislators on initiatives to fully utilize Long Beach port infrastructure and to create incentives for pollution control.

JAMIL DADA, VICE PRESIDENT, PROVIDENT BANK, MORENO VALLEY

Oscar Valdepeña, executive director, and Julie Reyes, chairman of the board of the Moreno Valley Chamber of Commerce, co-nominated Jamil Dada, saying, “Mr. Dada has always risen to the occasion when the issues pertained to the workforce, small business, education or military within our community. Mr. Dada has taken the lead many times to draw up support or opposition to measures that would greatly impact the way businesses can operate,” and “Mr. Dada is a distinguished community leader in the Moreno Valley.”

Dada is a regular visitor to Sacramento and Washington D.C., where he is a champion for small business, education and military issues. In 2006, he was a member of the Workforce Investment Board, a panel that advises the Governor on policies related to business, employment, training, education and other facets of building a solid workforce for the state. He also served on the Riverside County Workforce Development Board where he helped protect the March Air Reserve base from closure by promoting its economic potential. He also worked to keep the Naval Surface Warfare Center in Norco open, and has helped guide the March Field Air museum.

TIMOTHY L. FOWLER, OWNER/SOLE PROPRIETOR, BETTERTON MASON AND WYATT, LOCKEFORD

Cynthia Haynes, Clements-Lockeford Chamber of Commerce CEO, and the Clements-Lockeford Board of Directors, co-nominated Timothy L. Fowler, saying that he has been an “outstanding advocate for small business in our area.”

As a former president of the Clements-Lockeford Chamber of Commerce, Fowler formed an agri-business committee that helped promote and advocate for sustainable, green local agri-business. He also formed and chairs the Government Relations and Economic Development Committee that works with local, county and state officials to deter graffiti and crime as well as encouraging the economic development of downtown. Fowler has worked hard to incorporate the community’s history in current businesses. He worked with local property owners, county and state officials for the preservation of historic buildings, as well as the beautification of downtown Lockeford in keeping with the historic values of the area.

GREG LIPPE, MANAGING PARTNER, LIPPE, HELLIE, HOFFER & ALLISON LLP, WOODLAND HILLS

Greg Lippe was nominated by Brendan L. Huffman, president of the Valley Industry & Commerce Association in Sherman Oaks. Huffman said of Lippe, “[He] is an effective and tireless advocate for the Valley’s small business community in many ways. Mr. Lippe’s leadership in the local business community is unmatched.”

Lippe is an active and vocal member of the business community, making monthly visits to the State Capitol to meet with state lawmakers on a variety of issues, including tax credits for manufacturers and filmmakers. He also writes a monthly column in the San Fernando Valley Business Journal. The column, “Capitol Punishment,” focuses on local business issues before the Legislature and also provides a vote record of the valley’s representatives. During the 2006 campaign season Lippe authored several articles, voicing strong support for the infrastructure bonds by highlighting the local impact the funds would have in the valley. Lippe is also very involved in ValPAC, a local political action committee that provides support for pro-business candidates. In addition, he regularly contributes to help formulate the chamber’s pro-business and advocacy strategies.

JIM SCHMIDT, BANKER AND ATTORNEY (RETIRED), LA MESA

Jim Schmidt was nominated by Terry Saverson, president/chief executive officer of the San Diego East County Chamber of Commerce. Calling him the mainstay of the chamber’s Government Affairs Committee, Saverson said of Schmidt, “Jim doesn’t just talk about what he believes; he acts on working for those beliefs with the passion of a true advocate. He is a visionary. Jim Schmidt will always commit to making San Diego County a prosperous and successful community for those of us who live here.”

Schmidt is an expert on transportation issues and devotes countless hours to San Diego’s transportation system. In 2006, he successfully campaigned for a local hospital bond, Proposition G. After its passage, he served on the Proposition G Bond Oversight Committee to ensure that taxpayer monies earmarked for the hospital were spent properly. He is a director of the San Diego East County Chamber of Commerce and is a committee member of the Transportation, Housing and Public Policy committees of the San Diego County Sunset Advisory Board. Schmidt made several trips to the State Capitol in 2006 to lobby the Legislature in support of SB 1254, which would have helped employees achieve greater flexibility in work schedules by allowing individual workers to request and their employers to mutually agree to a four-day workweek. Schmidt also writes a monthly column for the San Diego Daily Transcript.

The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, we provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California's economy and create jobs. Please visit our website at www.calchamber.com.

Contacts

California Chamber of Commerce
Vince Sollitto, 916-444-6670