Following intense lobbying from local officials and business leaders, Gov. Arnold Schwarzenegger on Monday added the Pacoima/northeast San Fernando Valley area to the Los Angeles Enterprise Zone.

The move came one month after the Schwarzenegger administration came under heavy criticism for leaving the Pacoima area out of the re-designation of the Los Angeles Enterprise Zone, which includes the central city area and Hollywood. The Los Angeles zone was one of 23 that were set to expire late this year or early next year.

The state enterprise zone program targets economically distressed areas, and allows employers who set up shop in a zone to receive tax credits for employees they hire from within the zones. Employers are also eligible for sales tax credits for certain machinery purchases and can expense up-front certain depreciable property. It is one of the few economic development tools the state has.

Besides the city of Los Angeles, other cities in the county that have had their enterprise zones designated or re-designated include Compton, Long Beach, Pasadena, South Gate/Lynnwood and Santa Clarita.