From the Governor
“By every traditional measure, the state of our state is strong. We have a record-breaking surplus. We’ve added 3 million jobs since the depths of the recession. Wages are rising. We have more scientists, researchers and engineers, more Nobel laureates, and the finest system of higher education anywhere in the world.” —Gov. Gavin Newsom
The Golden State often ends up at the bottom of Chief Executive’s list of the Best and Worst States in which to do business (according to survey respondents), but there is no shortage of companies eager to invest in new projects and expand here. Despite the regulations, taxes and high cost of living, many find the availability of talent, access to ports and Asian markets and incentives attractive. Google, Epson, UL and Home Chef have all announced new projects here in the past year.
California Competes Tax Credit: Offers a flexible income tax credit for businesses that come, stay and grow in the state. Applications are accepted three times per year, and tax credit agreements are reviewed and negotiated by GO-Biz and the California Competes Tax Credit Committee.
California Research Credit: Offers a tax credit of up to 15% to taxpayers engaged in qualified research activities to discover new technology, develop a new business component or pursue a “process of experimentation.”
Sales and Use Tax Exemption for Manufacturing: Offers a partial exemption of sales and use tax on certain manufacturing and R&D equipment purchases and leases.
Advanced Transportation and Manufacturing Sales and Use Tax Exemption: California Alternative Energy and Advanced Transportation Financing Authority offers a full sales-and-use tax exclusion for manufacturers that promote alternative energy and advanced transportation.
California Association for Local Economic Development
California Governor’s Office of Business and Economic Development: business.ca.gov
Greater Sacramento Economic Council: selectsacramento.com
Los Angeles Economic Development Corp.: laedc.org
San Diego Regional Economic Development Corp.: sandiegobusiness.org
San Francisco Office of Economic & Workforce Development: oewd.org
Highlighted Program or Initiative
In May 2019, the Governor’s Office of Business and Economic Development announced the Regions Rise Together initiative to bring together leaders in every region of the state to ensure economic development lifts every part of California. 2020 will bring a greater focus on inland communities that face higher unemployment and experienced declined in per capita incomes.
- Google announced in August 2019 more details to remake San Jose’s downtown district with housing and infrastructure to support up to 25,000 employees.
- Home Chef announced in August 2019 an expansion of operations in San Bernardino.
- Epson America announced in March 2019 it will move its corporate headquarters to Los Alamitos, near its current facility in Long Beach.
- Karma Automotive opened in April 2019 a $100 million innovation hub in Moreno Valley, bringing 200 new jobs.
- UL opened in June 2019 a Silicon Valley EMC and wireless testing lab in Freemont. The expansion to the existing facilities bring a total of more than 300 workers on the site.
49 Fortune 500 companies are headquartered in the state, including:
Hewlett Packard Enterprise
“This is an exciting time for Epson America, and considerable thought went into making this strategic decision. Ultimately, ensuring that our employees have the world-class facilities necessary to continue to innovate, compete and build careers was our top priority…. We look forward to the next chapter in our growth with the Los Alamitos and the Orange County community with the new headquarters facility.” —Keith Kratzberg, President & CEO, Epson America
“We are thrilled to be a part of Silicon Valley’s innovation ecosystem… The expanded facility equips us to better support Silicon Valley companies and to fast-track their project fulfillment, allowing them ultimately to quickly grow and thrive.” —Ghislain Devouge, Global Vice President and General Manager Consumer Technology, UL