California has the largest solar market in the US driven
by the Governor’s Solar Initiative. California’s
innovation DNA has also driven over 60% of the venture
capital invested in renewable energy in the US.
New technologies and processes are being developed every
TeamCalifornia supports the Governor’s Initiative
to expand renewable energy and reduction of greenhouse
gas by assisting existing and new innovative manufacturers
in photovoltaic, concentrating solar power, solar thermal
and balance of system components to locate and expand
Communities throughout California offer sites,
buildings, financing and workforce development programs
to meet the needs of your businesses – start your
search by completing our Inquiry
Form or calling confidential, professional staff
at TeamCalifornia, Mary Ingersoll, (916) 791-9900.
California is an innovation leader. New ideas are a natural part of life in the Golden State. California makes business sense.
- Eighth largest economy in the world.
- California's economy represents over 13% of the United States' Gross Domestic Product.
- California's population exceeded 39 million persons.
- Number one state for attracting foreign direct investment.
California is globally connected with a world-class infrastructure.
- California's export shipments of merchandise in 2009 totaled $120 billion.
- There are more than 15,000 miles of highways and freeways.
- Home to the top 50 gateways include the Port of Los Angeles (#1), Port of Long Beach (#4), and the Port of Oakland (#23). – direct Pacific Rim access.
- There are 18 foreign trade zones and 42 enterprise zones.
California continues to be the nation's leading high-tech state.
- The Golden State boasts nearly 1 million high-tech workers, more than any other state. Over one-sixth of all U.S. high-tech workers reside in California.
- High-tech exports totaled ranked first nationwide in total high-tech exports.
- High-tech goods represent nearly 50% of the state's annual exports.
- 40 federal laboratories.
- Three out of the ten NASA centers are located in California.
- In 2009, over 20,000 patents originated in California, far more than any other state.
California leads the nation in R&D and venture capital (VC) investment.
- In 2008, California companies received more than $14.2 billion, or 50.1% of all VC dollars invested in the U.S.
- Top sectors receiving VC funding are software, biotechnology, energy, medical devices and telecommunications.
- California is the number one state for attracting foreign direct investment.
- California is one of the top 5 states in the area of science and technology; specifically: No.1 in Risk Capital and Entrepreneurial Infrastructure and No.3 in Research and Development Inputs.
- California offers a 24 percent R&D tax credit to businesses.
California supports creativity with a superior educational system and workforce training that produces an unrivaled, highly skilled labor force with over 2 million students enrolled in nearly 300 colleges and universities with over 270,000 college graduates annually.
Governor Schwarzenegger during his administration has signed several pieces of legislation that support and encourage the use of Renewable energy. In 2006, the Governor signed his Million Solar Roofs Plan into law. Now known as the California Solar Initiative, it will provide 3,000 megawatts of additional clean energy and reduce the output of greenhouse gases by three million tons, equivalent to taking one million cars off the road. The $2.9 billion incentive plan for homeowners and building owners who install solar electric systems will lead to one million solar roofs in California by the year 2018.
The California Solar Initiative was enhanced in January 2007, with the addition of the New Solar Homes Partnership (NSHP). The goals of the NSHP are to create a self-sustaining market for solar homes and gain builder commitment to install solar energy systems on new homes as a standard feature for the home buyer. A new home that qualifies for the NSHP is at least 15 percent more efficient than the current building standards.
Since 1993, the California Legislature has passed over 160 bills which support renewable energy. These laws provide property tax exclusions and funds for grant and loan programs that support renewable energy. During this legislative session the following three bills were signed into law:
AB 44 expands the potential uses of contractual assessments that local agencies can enter into with property owners to finance solar installations. Existing law authorizes a public agency to enter into a voluntary contractual assessment with a property owner to finance the installation of renewable energy sources, including solar, on the property. Under this type of agreement, the property owner chooses to assess itself for the cost of an energy project, the local government provides the upfront funds, and the property owner pays an annual assessment until those funds plus interest are repaid.
AB 1011 includes green investments, including solar installation, as a “community development investment” for the report that admitted insurers make to the Insurance Commissioner. Insurers are required to report biennially to the Insurance Commissioner on all of its community development investments in California. This bill defines “green investments” as a reportable category as investments that emphasize renewable energy projects, economic development, and maintenance or rehabilitation for public works that offer energy efficiency improvements.
AB 1809 requires a home inspection to include an energy rating audit that rewards solar, if requested by the client. The CEC establishes residential standards related to a statewide home energy rating program, called the Home Energy Rating System (HERS) program. AB 1809 requires a home inspection to include, if requested by the client, a HERS home energy audit that meets the CEC requirements.
The State of California has several programs, opportunities and business friendly policies that may be of interest to companies interested in establishing a California operation. The following is a summary of possible programs:
California Alternative Energy & Advanced Transportation Authority (CAEATFA) Sales & Use Tax Exemptions for ‘Clean Technology’ Manufacturing
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides financing through a sales tax exemption for the purchase manufacturing equipment that is used in alternative energy sources and technologies. CAEATFA also provides financing for manufacturing equipment needed to develop and commercialize advanced transportation technologies that conserve energy, reduce air pollution, and promote economic development and jobs. More information and future applications will be available at: http://www.treasurer.ca.gov/caeatfa/sb71/index.asp.
Enterprise Zone (State Program)
Businesses located within California’s enterprise zone(s) are eligible for substantial tax credits and benefits including:.
- Up to 100% Net Operating Loss (NOL) carry-forward. NOL may be carried forward 15 years (suspended for tax years 2002 and 2003);
- Firms can earn up to $37,440 in state tax credits for each qualified employee hired;
- Corporations can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts;
- Up-front expensing of certain depreciable property. Lenders to Zone businesses may receive a net interest deduction;
- Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment;
- Enterprise Zone companies can earn preference points on state contracts.
Employment Training Panel (ETP)
- A company may be eligible for a contract with ETP to help assist with post-hire training reimbursement. If the proposed training qualifies and meets ETP’s eligibility criteria a contract will be developed.
- The Employment Development Department, in partnership with Local Workforce Investment Area, may assist recruit, screen, and test, evaluate and hire qualified employees.
Research & Development Tax Credit
- This State Tax Credit is designed to encourage companies to increase their basic research and development activities in California, the research and development tax credit allows companies to receive a 15 percent credit against their bank and corporation tax liability for qualified in-house research expenses, and a 24 percent credit for basic research payments to outside organizations.
Industrial Development Bonds
- Congress created tax-exempt Industrial Development Bond (“IDB”) financing to promote investment in land, buildings and new equipment associated with domestic manufacturing and processing operations.
Elective Single Sales Factor
- California currently uses a triple apportionment corporate income tax structure method for assessing taxes on businesses. This tax system weighs a company’s payroll, property, and sales when apportioning taxes. Beginning January 1, 2011 California companies will have the option to use the single sales factor method for corporate income tax.
Protecting the Business Provisions from the 2008-09 Budget
- Effective January 2010, businesses are able to share business tax credits among a related group of affiliate or subsidiary companies (known as unitary utilization).
Home Buyer’s Tax Credit Program
- California allows new home buyer a credit against their net tax equal to the lesser of 5% of the purchase price of the qualified principal residence or ten thousand dollars ($10,000) The credit is for the purchase of only one qualified principal residence with respect to any taxpayer and will be applied in equal amounts over the three successive taxable years beginning with the purchase of the qualified residence. (maximum of $3,333 per year).
A California Business Address
- Direct assess to the eighth largest economy in the world.
Governor’s Office of Economic Development
- The Governor's Office of Economic Development (GoED) was created by Executive Order as a one-stop shop for business assistance and to facilitate and stimulate economic growth through the development and implementation of strategic policies and partnerships with the private sector, community, local, and national organizations that enhance human and capital infrastructure as well as increase California’s competitive advantage in the global marketplace.
1130 K Street
Sacramento, CA 95814
Phone: (877) 345-GOED
September 28, 2008, Governor Arnold Schwarzenegger
signed three new laws that support Renewable Energy:
1451 by Assemblymember Mark Leno (D-San Francisco),
2466 by Assemblymember John Laird (D-Santa Cruz)
2267 by Assemblymember Felipe Fuentes (D-Sylmar).
Renewing California’s commitment to solar energy,
AB 1451 will build on the state’s solar power
usage by continuing a property tax exclusion for projects
that utilize solar panel energy and expanding the exclusion
to builders-installed solar energy systems in new homes.
The original property tax exclusion was passed by voters
AB 2267 builds on California’s green economy by
requiring the California Public Utilities Commission
to grant incentives to eligible California-technology
manufacturers. This bill also requires the California
Energy Commission to give priority to California-based
companies when granting awards and will not only create
jobs for hardworking Californians but will attract more
clean-tech and green-tech companies to the state.
AB 2466 will increase energy efficiency and help protect
the environment by authorizing local governments to
receive a utility bill credit for surplus renewable
electricity generated at one site against the electricity
consumption at other sites.
Other bills recently signed by the Governor that impact
2863 by Assemblymember Mark Leno (D-San Francisco)
allows for purchase agreements in residential solar
power generation and designates companies that sell
solar electricity generated at the location where it
is used as independent solar energy producers. This
bill also establishes consumer protections including
contract disclosures, a mandatory notice that is filed
with the title of real property and price protections
for residential renters.
2768 by Assemblymember Lloyd Levine (D-Woodland
Hills) maximizes the incentive for ratepayers to install
solar energy systems. This bill gives solar energy customers
the option to use time-variant pricing tariffs through
the authority of the California Public Utilities Commission.
2180 by Assemblymember Ted Lieu (D-Torrance) requires
homeowners associations to respond to a request from
a member to install a solar energy system within 60
days. If no action is taken within that timeline, the
request will automatically go into effect. This timeline
will ensure that application guidelines for both the
California Solar Initiative and federal tax credits
are met, and consumers are able to apply for the maximum
amount of rebates.
2804 by Assemblymember Mary Hayashi (D-Hayward)
requires the California Public Utilities Commission
to grant extensions on the time frame after a school
district or community college has applied for a rebate
under the California Solar Initiative. The public utilities
commission may grant a maximum of three 180-day extensions
for a total of 540 days.
California’s Renewable Portfolio
Standard (RPS) is one of
the most ambitious renewable
energy standards in the country
- 20% , no later than 2010.
The California Public Utilities
Commission (CPUC) and California
Energy Commission (CEC) are
jointly responsible for implementing
the program. http://docs.cpuc.ca.gov/published/GRAPHICS/63799.PDF
In August 2006, the Governor signed his Million
Solar Roofs Plan into law. Now known as
Solar Initiative, it will provide 3,000 megawatts
of additional clean energy and reduce the output of
greenhouse gases by three million tons, equivalent to
taking one million cars off the road. The $2.9 billion
incentive plan for homeowners and building owners who
install solar electric systems will lead to one million
solar roofs in California by the year 2018.
In January 2007, the New Solar Homes Partnership (NSHP)
was announced as a component of the California
Solar Initiative. The goals of the NSHP are to create
a self-sustaining market for solar homes and gain builder
commitment to install solar energy systems on new homes
as a standard feature for the home buyer. A new home
that qualifies for the New Solar Homes Partnership is
at least 15 percent more efficient than the current
building standards. The overall goal of the NSHP is
to achieve 400 megawatts of new solar-produced electricity
by the end of 2016.
Currently, the NSHP has received applications representing
over 5,600 new energy efficient solar homes.
Continuing his pledge to grow a green economy, Governor
Arnold Schwarzenegger announced today that he has signed
3018 by Speaker Emeritus Fabian Nuñez which
creates a Green Collar Jobs Council to develop a comprehensive
approach to address California’s emerging workforce
needs associated with its budding “green”
“The green-friendly business climate we are building
in California continues to attract more clean-tech and
green-tech companies to the state and is ensuring that
the job growth in this booming industry will happen
in California,” Governor Schwarzenegger said.
“The Green Collar Jobs Council established by
this legislation will capitalize on our state’s
clean-tech boom and help transform of California’s
workforce to meet the demands of an emerging green economy.”
College Workforce Training
Underwriters Laboratories (UL), a world leader in product
safety testing and certification, announced July 14,
2008 the opening of North America’s largest
commercially focused photovoltaic (PV) testing and certification
facility in Silicon Valley.
Located in San Jose, Calif., UL’s 20,000 square-foot
Photovoltaic Technology Center of Excellence increases
testing capacity for the renewable energy industry and
will enable manufacturers to get UL-Listed PV products
to market faster. The state-of-the-art lab’s 14
test chambers and two solar simulators provide indoor
and outdoor testing capabilities to evaluate photovoltaic
modules and panels, and a wide variety of power systems
accessory equipment. The facility will also offer
a full portfolio of pre-certification services, including
R&D and training. http://www.ul.com