Economic Development staff can assist in pursuing local and state business assistance programs. The following provides a brief description of the type of programs available:
R&D tax credit
Companies planning to take advantage of the Bay Area's superior research and development resources will be interested to know that California offers one of the most generous R&D tax credits in the nation. The R&D tax credit allows companies to receive a credit of 15 percent for qualifying in-house research expenses and 24 percent for basic research payments to an outside company or university. Qualifying expenses include:
Employee wages for researchers, supervisors, and support services;
Supplies used in conducting the research; and
Amounts paid to outside consultants for the right to use personal property for research.
California Energy Commission PIER Program
The California Energy Commission's Public Interest Energy Research (PIER) Program supports research, development and demonstration (RD&D) projects that will help improve the quality of life in California by bringing environmentally safe, affordable and reliable energy services and products to the marketplace. The PIER Program annually awards up to $62 million on a case-by-case basis for RD&D in a number of areas including end-use energy efficiency in buildings, energy systems integration, environmentally-preferred advanced generation, and renewable energy technologies. Commission staff are always looking forward to meeting with company officials to discuss the possibility of grants and loans. Please refer to the website for more information.
Industrial Development Bond Program for Equipment and Facilities
For real estate and equipment projects that do not exceed $20 million, the East Bay offers one of California's most successful tax-exempt Industrial Development Bond programs. This program provides low-cost, long-term financing for real estate and equipment projects that retain or create employment in Alameda or Contra Costa counties. The bond proceeds may be used for the financing of new capital projects including: land and building acquisition; construction; renovation; and new machinery and equipment.
IDB bond amounts usually start at around $2 million up to a maximum of $10 million. Repayment periods extend up to 40 years. Recently interest rates have been about .5% and historically they have run about 2% below prime. For current rates, please contact East Bay EDA. Although projects compete on a statewide basis, the East Bay EDA has been one of the most successful issuers in the state.
For more information, contact Economic Development at 800-727-2254, 925-671-3355 or Email Us.
John Montagh, Economic Development & Housing Manager
Robert Ramirez, Economic Development Specialist