TAX INCENTIVES
MANUFACTURING EQUIPMENT TAX CREDIT
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Program Sponsor:
California Franchise Tax Board.
Eligibility:
Manufacturing firms.
A 6% tax credit is permitted for qualified property purchased after January 1, 1994. "Qualified property" generally means property used in manufacturing, processing, refining, fabricating, recycling, and research and development. The credit may be carried forward for seven years, or for nine years for small businesses. The credit can be claimed for the purchase of manufacturing equipment which is "depreciable" under federal regulations. In addition, "special purpose building and foundations" (i.e. clean rooms) and leased equipment would be eligible for the credit. Start up companies are provided a 5% state sales and use tax exemption on all qualifying manufacturing property during the first three years of operation. The sales tax exemption is available as an option to the investment tax credit.
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RESEARCH AND DEVELOPMENT TAX CREDIT
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Program Sponsor:
California Franchise Tax Board.
Eligibility:
Manufacturing firms.
Designed to encourage companies to increase their basic research and development activities, the research and development tax credit allows companies to receive a credit of 8% for qualified research expenses (research done in-house), and 12% for basic research payments (payments made in cash to an outside company).
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PORT OF HUENEME/OXNARD HARBOR DISTRICT
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Program Sponsor:
The Oxnard Harbor District.
Eligibility:
Firms involved in the import and export of goods.
Foreign-Trade Zones (FTZ's) are considered outside of U. S. Customs territory. Companies or individuals may ship goods into a FTZ, manipulate, process, assemble and store imports within the boundaries, deferring Customs duty on those goods until they are ready for shipment into the U. S. market. Value-added improvements or storage are all conducted under a duty deferred status. The FTZ gives the importer discretion over when, if ever, the foreign product should enter the commerce of the U. S. and be assessed the required duty.
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For more information on any of these opportunities,
please call Economic Development at (800) 643-5373 or e-mail:
Camarillo Economic Development
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