State Incentives

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The Governor's Economic Development Initiative (GEDI)

Although the Enterprise Zone as we know it has expired, our partners at the State of California have established a number of aggressive incentive programs to make our state an even more attractive place to do business. The California Governor's Office of Business and Economic Development (GO­-BIZ) has three new programs under the Governor's Economic Development Initiative (GEDI): Manufacturing Equipment Sales and Use Tax Exemption, New Employment Credit, and the California Competes Tax Credit. The first two are non-competitive. The last one, California Competes Tax Credit is a competitive application process. To view the complete GO-Biz briefing on the Governor’s Economic Development Initiative follow the link below.

http://www.business.ca.gov/Portals/0/AdditionalResources/Reports/GOV.%20BROWN%20ECON%20DEV%20INITIATIVE.PRESENTATION.pdf

 

Manufacturing Equipment Sales and Use Tax Exemption (Board of Equalization)

This provides an immediate sales and use tax exemption on qualified manufacturing equipment. This incentive eliminates 4.19% of the sales and use tax, resulting in no state tax paid at the time of purchase. It is applied toward the purchase of up to $200 million dollars' worth of equipment. The exemption can also be applied to certain building improvements, such as clean rooms for manufacturing. To view the complete BOE briefing on the tax exemption follow the link below.

http://www.boe.ca.gov/sutax/manufacturing_exemptions.htm

If you would like additional assistance, please contact the BOE,
Help hotline: 1-800-400-7115
Email: www.boe.ca.gov/info/email.html
Regular Mail: 3321 Power Inn Road, Suite 200, Sacramento, CA 95826-3889

New Employment Credit (Franchise Tax Board)

This employee income tax credit offers up to $56,000 per qualifying employee over a span of five years. The credit is calculated at 35% of wages each year, for a total of 175%. The incentive applies to a broad range of employees, including those unemployed for 6 months; veterans within one year of separation; Earned Income Tax Credit (EITC) recipients; ex-offenders; and recipients of Cal Works or general assistance. The New Employment Credit is offered based on Designated Geographic Areas and income qualified census tracts. The City of Lancaster is a Designated Geographic Area and has a number of qualified census tracts, so businesses located in Lancaster have the valuable opportunity to apply for this credit. To view the complete FTB briefing on the tax credit follow the link below.

https://www.ftb.ca.gov/online/New_Employment_Credit_Reservation/

 

California Competes Tax Credit

The Governor’s Office of Business and Economic Development (GO-Biz) operates the California Competes Tax Credit Program. Its purpose is to provide businesses with income tax credits in order to attract out-of-state businesses to move to California, for existing California businesses to expand, and to stimulate job growth. Implemented in the beginning of 2014, this initiative adopted eight sections under a new article and chapter in title 10 of the California Code of Regulations sections 17059.2, 18410.2, 23689.

No fee is required to apply, and the credit is available statewide to all industries. Applications are submitted online. There are 2 phases to the evaluation process. Phase 1 determines a cost-benefit ratio for the State, based on the applicant’s requested tax credit, aggregate employee compensation and aggregate investment. Phase 2 evaluates the applicants based on 8 additional factors such as extent of unemployment/poverty, other incentives available, number of retained employees, etc. No more than 20% may go to any one applicant per fiscal year, and 25% of the total amount for each fiscal year is reserved for small businesses. Unsuccessful applicants may resubmit applications in the next application period in the same fiscal year. All applications expire at the end of each fiscal year. This unique income tax credit can be applied in addition to the New Employment Credit.

This credit can be given to any business after negotiation by GO-Biz and the approval of the California Competes Tax Credit Committee, which is comprised of the Department of Finance, State Treasurer, Director of GO-Biz (Chair), and two legislative appointees.

For more information and to learn how to apply follow the link below.

http://www.business.ca.gov/Programs/CaliforniaCompetesTaxCredit.aspx

Employment Training Panel 

The Employment Training Panel supports job creation and retention through workforce development. ETP provides financial assistance through reimbursements to California businesses in support of customized worker training. ETP funds three types of training programs: Retaining, New Hire and Special Employment Training which includes a small business program. Eligible employers are ones that are subject to the Employment Training Tax. 


California Film and Television Tax Credit Program 

Newly expanded for fiscal year 2014-15 with roughly 230 million in available tax credits for feature films, independent films, studio films, 1-hr TV series, TV miniseries, TV pilots, etc. 


Electric Program Investment Charge (EPIC) 

Provides funding for applied research & development, technology demonstration and deployment, and market facilitation for clean energy technologies and approaches. 


Alternative and Renewable Fuel and Vehicle Technology Program 

Provides grants towards innovative transportation and fuel technologies that help California meet its energy, clean air, and climate change goals.


Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) 

Voucher program to help speed up the early market introduction of clean, low-carbon hybrid and electric trucks and buses. Base vouchers range from $8,000 - $65,000 each. 


Providing Loan Assistance for California Equipment (PLACE) Program 

The California Air Resources Board offers three loan programs for the following areas: Off-Road Vehicles, On-Road Heavy-Duty Vehicles and Goods Movement Emissions Reductions. 


California Pollution Control Financing Authority 

Facilitates low cost financing to qualified waste and recycling projects, helps participating financial institutions extend credit to small businesses through microloans and larger loans for start-up, expansion and working capital through the California Capital Access Program, and assists with the cleanup of contaminated sites through the CALReUSE Program. 


Industrial Development Bond Financing Program

Provides manufacturing and processing companies low-cost, low-interest financing for capital expenditures. 


California Small Business Loan Guarantee Program (SBLGP) 

Helps businesses create and retain jobs. Enables small businesses to obtain loans they could not otherwise obtain and establish favorable credit history with a lender. 


Innovation Hub Program 

Improves the State's national and global competitiveness by stimulating partnerships, economic development, and job creation around specific research clusters through state-designated iHubs. 


California Centers for International Trade Development 

Invests in California's economic growth and global competitiveness through industry-specific education, training and services that contribute to a highly skilled and productive workforce.


If you have any questions regarding CA State incentives, feel free to contact the Lancaster Economic Development Department

Phone: 661.723.6128
Email: Economic Development Ombudsman