As part of the LBEP message that Long Beach is a great place to invest, work, and live, The Partnership is active across multiple fronts to promote business attraction, support, and retention. From hosting events like the Annual Economic Forum, sponsoring projects and activities, to welcoming guests from interested businesses and investors, LBEP is committed to new and innovative growth across the city.
True to our mission to promote Long Beach as a great place to live, work and invest, LBEP is focusing on the city’s priority industry sectors including:
- Aerospace, Aviation & Outer Space
- Supply Chain, Logistics and Goods Movement
- Healthcare
- Education & Talent Pipelines
- Tourism, Hospitality and Creative Economies
California Incentives and Business Support
Sales & Use Tax Exemptions (for equipment purchases):
Partial Sales & Use Tax Exemption
This program provides a sales tax exemption of 3.9375% for basic manufacturing equipment. Eligibility is determined by the company’s North American Industry Classification (NAICS) Codes 311100 to 339999, inclusive, 541711, or 541712. Research and development is eligible for the exemption.
- CDTFA Get it in writing program – to get advice on tax questions and equipment eligibility: https://www.cdtfa.ca.gov/formspubs/cdtfa8.pdf
- NAICS Code search website: https://www.census.gov/naics/
- If you pay the full amount of sales tax reimbursement at the time of purchase, and later discover that you have met all of the qualifications, you may issue a partial exemption certificate to your retailer. The retailer may then file a claim for refund for the overpaid portion of sales tax on your behalf. If the transaction was subject to use tax, the purchaser may file a claim directly with the CDTFA. https://www.cdtfa.ca.gov/industry/manufacturing-exemptions.htm#Purchasers
Full Sales & Use Tax Exclusion (CAEATFA)
This program provides a full sale and use tax exclusion for advanced manufacturers and manufacturers of alternative source, recycled feedstock, and advanced transportation products, components or systems. Next application period opening in July of this year.
- See Alternative Source definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#alternative
- See Advanced Transportation definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#transportation
- See Advanced Manufacturing definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#manufacturing
- See Recycled Feedstock definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#recycled
- Fee Calculator: https://www.treasurer.ca.gov/caeatfa/ste/fees.asp
Employment (workforce training & hiring tax incentives)
Employment Training Panel (ETP)
This program provides match funding to employers to assist in upgrading the skills of their workers.
- To learn more or start the application process you can sign up for an ETP Interactive Orientation.
- If you are interested in an in person or telephone orientation, please contact the ETP Economic Development Unit or by telephone at (818)755-3634 in Southern California or (916)327-5258 in San Francisco Bay Area/Northern California.
- You can also participate in ETP through a Multiple Employer Contract (MEC), simply contact any MEC serving your industry. You can see the MEC’s here on ETP’s website.
New Employment Credit (NEC)
This credit is an income tax credit for specific new hires (ie former veterans, formerly incarcerated individuals, unemployed members) in economically disadvantaged areas – designated geographical areas. The credit is based on 35% of qualified wages or wages between 150% and 350% of minimum wage.
- Homeless Hiring Tax Credit California’s governor signed Assembly Bill (AB) 150 establishing the Homeless Hiring Tax Credit (HHTC). The credit is available for taxable years beginning January 1, 2022 through December 31, 2026. Employers may receive $2,500 to $10,000 in tax credit per eligible employee based on hours worked in the taxable year. Employers may claim up to $30,000 of credit per taxable year.
Financing Programs:
Industrial Development Bond (IDB)
This program provides tax-exempt financing that is available to manufacturers for the acquisition of manufacturing facilities and equipment.
Incentives – Power / Utilities
Utility Economic Development Rate Programs (EDR):
This program gives special utility discounts for businesses in California that are considering to expand, locate or relocate with out of state considerations in competition with California. Small businesses also qualify.
Self-Generation Incentive Program (SGIP):
This program provides businesses with rebates for installing energy storage technology at non-residential facilities. These storage technologies include battery storage systems that can function during a power outage.
Job Creation & Investment Support Programs:
California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses that want to locate in or relocate to California or existing California businesses that want to stay and grow in the state. Credit is awarded to businesses through a competitive application process which includes a holistic analysis of individual applications through a two-phase application and evaluation process over an approximately 90-day period. Businesses are not limited to the number of times they can apply or the number of times they can be awarded tax credits for additional full-time job growth and investments.
- Benefit: Credit against California income tax dispensed over a 5-year term with a 6-year carry forward
- Process: Competitive application process, final determination by committee
- Next Announced Award Periods & Funding Amounts
- July 2024 ($164M)
- Max award: 20% of the programs total annual funding. Max award is $98,425,800 (20% available in fiscal year)
- Benefit: Credit against California income tax dispensed over a 5-year term with a 6-year carry forward
- Process: Competitive application process, final determination by committee
- Further information: https://business.ca.gov/california-competes-tax-credit/
See the CalCompetes Resource Page. It includes an FAQ, application guide and presentation that you can walk through to help fill out the online application.
Site Selection & Permitting
- Also as mentioned, here is a link to access our Site Selection worksheet (password: calbis). We offer a no-cost tailored site selection service. This is a 14-day calendar process and clients/companies can be completely confidential. This process is malleable and can be adjusted to fit your needs. Take a look at the form, let us know if you are able to submit or have any questions.
- Pre-permit meetings can be arranged with our GO-Biz permitting team and any CA local government permitting agency that you need to interface with re facility equipment permitting, related questions and strategies to reduce permitting timelines.
ZEV-Related Incentives & Resources
- Cal Fleet Advisor: https://calfleetadvisor.org/
- Fleet Transition Resource List: https://business.ca.gov/
industries/zero-emission- vehicles/zev-resources-and- readiness/fleet-transition- services/ - HVIP (vehicle vouchers): https://californiahvip.org/
- Clean Off-Road Equipment (CORE) voucher program: https://californiacore.org/
- EnergIIZE incentives for commercial ZEV charging/fueling infrastructure. They’ll want to look into which of the funding lanes apply to them, and then sign up for email updates. The next one that’s about to open is for hydrogen, and the others are for charging. They open one funding lane per quarter. https://www.energiize.org/
- EV Charger permitting resources: https://business.ca.gov/
industries/zero-emission- vehicles/plug-in-readiness/ - CEC solicitations page, of course. https://www.energy.ca.gov/
funding-opportunities/ solicitations
Research & Development
Research and Development Tax Credit (R&D)
This program reduces state income tax due to the Franchise Tax Board for qualified research expenses while conducting qualified research activity in California.
