One of the most intriguing programs for expanding or relocating companies in California is aimed specifically at firms moving into, or expanding at, former military bases.
The state of California established the Local Agency Military Base Recovery Act as a way to stimulate economic development at closed military facilities. By 1995, 29 military installations had been closed by the federal government in California, meaning a loss of 59,000 military and related civilian jobs.
Since that time, California, through LAMBRA, has helped create 11,000 new jobs at those facilities. Companies that locate in a former military base are potentially eligible for a host of business incentives, including:
* State tax credits
* Net-loss carry forward for up to 15 years
* Sales tax credits up to $20 million per year on new equipment
* Unused tax credits can be stretched forward to coming years
