Aerospace & Defense

California has deep roots in the Aerospace and Defense industries and continues to provide the critical infrastructure the Department of Defense relies on to protect our national security. National security activity generates nearly 800,000 direct and indirect jobs for California citizens and produces a total economic impact of $156B each year.

Recently released data from the US Department of Defense Office of Economic Adjustment illustrates our strength in this industry. This report, covering fiscal year 2017, indicated that California ranked # 1 in Total Defense Spending, Defense Contract Spending and Number of Personnel. Each of these measures indicates the importance of this industry to California.

Developments by private industry in commercial space operations, expansion of air superiority defense programs and the emergence of cybersecurity demands will only deepen the connection between these businesses and California. Our office is focused on growing the talent to meet industry needs, expanding and improving critical infrastructure, and partnering with our companies, military installations, local governments and state agencies to build on our illustrious history and generate market opportunities in California.

What’s New…

California Competes Tax Credit

The California Competes Tax Credit is an income tax credit available to businesses who want to relocate, stay, or grow in California. Our team provides no-cost consultations to see if your business qualifies.

Advanced Transportation and Manufacturing Sales and Use Tax Exemption

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

Research & Development Tax Credit 

A business may qualify for an income tax credit if it paid for or incurred qualified research expenses while conducting qualified research activity in California. Qualified research expenses include wages, supplies, and contract research costs.

References
1. California Research Bureau, “California Statewide National Security Economic Impacts,” August 2018 (updated)
2. US Dept of Defense Office of Economic Adjustment
3. Bureau of Labor Statistics, “Occupational Employment and Wages, May 2018, 17-2011 Aerospace Engineers”, accessed December 5, 2019
4. PwC, “2019 Aerospace manufacturing attractiveness rankings,” and NASA, “NASA Centers and Facilities,” accessed December 5, 2019
5. US News and World Report, “Best Aerospace Engineering Programs,” ranked in 2019, accessed December 5, 2019