NEWS ITEMS
AROUND THE WEB
NEWS ITEMS
AROUND THE WEB
Solar Industry Growth Projected
06/24/2009
Oracle to Buy Sun Microsystems
Topics
Exclusive Content
Industry Reports
Related Sites
Newsletters
Enter your email address:
California Direct Financial Incentives
Area Development Online Research Desk (Feb/Mar 09)
|
Industrial development bonds:
California state government, cities, and counties have the authority to offer low interest financing to manufacturers and other businesses locating in their communities through the use of tax-exempt industrial revenue bonds. An eligible bond project can be the construction of a new plant, expansion of an existing facility, or the replacement of all or part of an existing plant. Financing bears an interest rate significantly lower than conventional methods (as a result of the tax exempt status of the securities), and the bonds are long-term with 15–30 year maturities. The bond proceeds can be used for real estate, construction, and equipment. Infrastructure and Economic Development Bank: Loans are available to assist local governments with the financing of infrastructure and public-works projects needed to support economic development and job-creation efforts. Eligible projects include water treatment and distribution, sewage collection and treatment, defense conversion and base reuse, streets and highways, drainage and flood control, public-safety facilities, public-transit projects, environmental mitigation, port facilities, and communications projects. Customized training: The Employment Training Panel (ETP) is a state agency founded in 1983 as a cooperative business-labor program designed to train and retrain workers. ETP is financed through a training tax collected through the state's unemployment insurance system, and benefits the economy by primarily focusing its funds on the training of unemployed workers for high-wage, high-skill jobs and on the retraining of incumbent workers of businesses challenged by out-of-state competition. ETP provides funds to employers so they may train California workers who are currently employed or drawing or have exhausted unemployment insurance benefits. Single employers, groups of employers, training agencies, and workforce investment boards are all eligible to apply for ETP funding. Reimbursements for the costs of providing the training average $1,800 per employee trained and retained by the employer for at least 90 days after completion of the training. Training may be provided in the classroom, in a laboratory environment, on the job (under certain circumstances), or any combination of the three. Businesses retain control of the content of the training program. Enterprise zones: California's Enterprise Zone Program — an innovative partnership between the state, local government, and the private sector — spurs business development in designated areas through special zone incentives. Incentives include sales hiring tax credits and sales and use tax credits, waivers or reductions of local fees, and expedited permit processing. LAMBRA Zones: Businesses in LAMBRA (Local Agency Military Base Recovery Area) Zones receive incentives similar to those of Enterprise Zones. Participating cities and communities include: Mare Island (Vallejo); Castle Airport (Merced); Southern California Logistical Airport (Victorville); Tustin Legacy (Tustin); Alameda Point (Alameda); San Diego Naval Training Center (San Diego); San Bernardino International Airport and Trade Center (San Bernardino); Mather (Sacramento); and McClellan (Sacramento). Small business financing: California assists small businesses through loan programs that target specific needs such as energy conservation, hazardous-waste reduction, acquisition of equipment to reduce air emissions, disaster relief, and equipment or working capital for small farms. Additionally, the State Loan Guarantee Program provides guarantees to banks and other financial institutions so that eligible small companies can obtain needed credit. CAEFTA: Sales & use tax exemptions for zero emission vehicle (ZEV) manufacturing: Under CAEATFA's authorizing statute, the authority’s purpose is to provide industry in California with alternative methods of financing alternative energy and advanced transportation technologies. The statute defines advanced transportation as: "emerging commercially competitive transportation-related technologies identified by the authority as capable of creating long term, high value-added jobs for Californians while enhancing the state's commitment to energy conservation, pollution reduction, and transportation efficiency." (California Public Resources Code Section 26002.3(d)) The CAEATFA Board has directed authority staff to explore proposals for providing sales and use tax exemptions for the purchase of ZEV manufacturing equipment. The goal of this new ZEV program is to create a strong new ZEV industry within California that reduces green house gas emissions and creates new long-term high value-added jobs. This exemption is created through a sales lease-back approach where: CAEATFA purchases specified equipment (tangible personal property, not real property) on behalf of company X. CAEATFA finances this purchase through a bond or loan. Company X then leases the equipment from CAEATFA, with the lease payments paying for the bond or loan. As envisioned, the lease would stay in existence only from the time of the equipment purchase until the equipment is placed in use. By statute, CAEATFA does not have to pay sales tax on the equipment it purchases. The Board of Equalization (“BOE”) oversees state sales and use tax issues and would be consulted in the process. California State Contact: California Business Investment Services 801 K Street, Suite 2100 Sacramento, CA 95814 (916) 322-0000 Incentive and tax information is provided to Area Development by each state’s economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings. |
|
|
STATE RESOURCES
|
SPONSOR PROFILES:
