How to Become a Millionaire - San Diego Work

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1 530 B Street, 7th Floor San Diego, CA P: (619) E: info@sandiegobusiness.org

2 What is MFG Day? Manufacturing plays a critical role in the US economy. However, the perception is often that U.S. manufacturing is antiquated factories with low-skilled workers. MFG Day is an annual national event which allows U.S. manufacturers the opportunity to open their doors to demonstrate their modern manufacturing facilities and foster interest in manufacturing careers. For the third year in a row, the San Diego and Tijuana region will be supporting National Manufacturing Day with a host of activities aimed at improving the understanding of manufacturing by promoting many of the outstanding companies in the region. San Diego MFG Day 2014 Quick Facts: More than 300 business professionals, students, and elected officials attended a breakfast panel with five of the region s leading manufacturers: Sector 9, General Dynamics/NASSCO, 3DRobotics, ViaSat, and Carefusion 31 companies hosted tours, more than any other county in California The event garnered local media coverage with 14 media hits including ABC10 News, KUSI, CW6, SDBJ, The Daily Transcript, UT San Diego, SD Metro and Times of San Diego Local Support: San Diego Regional EDC staff and their partners are more than happy to assist companies in their planning, hosting, and necessary follow-up after their tours. Please contact EDC at mfgdaysd@gmail.com Get Involved Companies that wish to host a tour on MFG Day are encouraged to follow the steps below to sign up and begin preparing for a tour: Setting Up a Manufacturing Day Event Determine the format of your event (presentation, facility tour, roundtable, etc.) Determine the desired length of your event Register your event on Send the invitations Track and confirm RSVPs and follow up as necessary Additional Information Companies are encouraged to go to the following webpage to learn all the necessary steps to prepare, host, and ensure a successful tour on MFG Day: playbook/mfgday-2014-host-kit.pdf To learn more about National MFG Day, go to Interested in participating as a San Diego MFG Day sponsor? Contact Jesse Gipe at jg@sandiegobusiness.org San Diego's MFG Day presented by: 2

3 Business Incentives and Support Local Incentives City of San Diego - Economic Development Agreement The EDA provides assistance to businesses which provide revenue and jobs to the city in the form of: assistance with permits and approvals; crediting up to 45 percent of sales or use taxes paid by the business against City business license taxes and/or development related fees; rebating up to 25 percent of sales or use taxes paid by the business; or reducing water and sewer charges by $1,000 per equivalent dwelling unit. San Diego Workforce Partnership On-the-Job Training Program (OJT) is designed to assist businesses hire and train new employees who do not have sufficient experience and knowledge in the jobs for which they are being hired. The employer s training expenses will be paid at a rate not to exceed 50 percent of the wages the new employee earns during the contracted training period Customized training and curriculum programs exist at the workforce investment board, community college, and university level to ensure we have the right programs to respond to and proactively address industry s needs California State Incentives Sales & Use Tax Savings on Purchases Sales and Use Tax Exclusion offers a full sales and use tax exclusion (between 7.5 and 10 percent statewide) for advanced manufacturing and advanced transportation technologies Sales and Use Tax Exemption offers a partial sales and use tax exemption (4.2 percent) for manufacturing, process, refining, fabricating, or recycling, as well as research and development purchases Tax Credits California Competes Tax Credit is an income tax credit made available to business that want to locate to and grow in California. The annual budget for this program is $150 million with designated application periods. For FY , the last application period runs from March 9 through April 6 with more than $31.1 million in funds available Research and Development Tax Credit is a 15 percent credit for qualified in-house research expenses and a 24% credit for basic research payments to an outside organization are offered to companies that conduct qualified research activities in California. A federal research credit is also available New Employment Credit is available to companies in designated geographic areas of the state who have a net increase in employment and hire qualified employees. The tax credit is up to 35 percent of qualified wages Property Tax Relief Capital Investment Incentive Program provides for property tax rebates beyond the first $25 million of assessed property for industry codes 3364 (Aerospace Products and Parts Manufacturing) and 3359 (Other Electrical Equipment and Component Manufacturing), subject to approval by local jurisdictions Workforce Development Incentives Employment Training Panel provides an opportunity for employers to get reimbursed for training their existing staff and new hires; options exist to either apply for your own contract or to contract with an existing contract holder 3

4 California State Incentives Financing Industrial Development Bonds offer tax-exempt securities of up to $10 million for the acquisition, construction, rehabilitation and equipping of manufacturing and processing facilities for private companies California Capital Access Program encourages financial institutions to make loans to small businesses that fall just outside their conventional underwriting standards by insuring up to 100 percent coverage on certain loan charge offs. Also as part of this program, Collateral Support pledges cash to cover the collateral shortfall of loans of $100,000 or more and provides up to 40 percent of the loan value, with the possibility of an additional 10 percent for businesses located in a Severely Affected Community California Pollution Control Financing Authority Tax-Exempt Bond Financing Program provides tax-exempt bond financing to California businesses for the acquisition, construction, or installation of qualified pollution control, waste disposal, waste recovery facilities, and the acquisition and installation of new equipment California Small Business Loan Guarantee Program provides loan guarantees for small businesses that can cover up to 90 percent of the loan amount Federal Incentives Trade Incentives Foreign Trade Zones are federally designated areas where companies can delay or reduce duty payments on foreign merchandise. There are two types of Foreign Trade Zones, general purpose and subzones (the latter is for a specific company or use). San Diego has one FTZ in the City of San Diego (No. 153) Interest-Charge Domestic International Sales Corporation (IC-DISC) is a federal tax incentive for exporters of products made in the U.S. California manufacturers who receive 50 percent of their net income from foreign sales may be subject to a significantly reduced US income tax rate Export-Import Bank finances the export of U.S. goods and services to international markets by providing working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans Financing EB-5 Financing provides foreign nationals the opportunity to become conditional residents for a period of two years upon making an investment of $1 million, or $500,000 in a designated Targeted Employment Area, in a new commercial enterprise. Each unit of investment must create at least ten new, direct or indirect jobs for U.S. workers Small Business Administration Loan Programs include general small business loans (7(a)), microloans, real estate and equipment loans, CDC/504, and disaster loans Workforce Development Work Opportunity Tax Credit is available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment Tax Credits New Markets Tax Credit Program awards companies a tax credit against their Federal income in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years 4

5 San Diego Advanced Manufacturing Industry Advanced manufacturing is an established industry cluster that supports San Diego s metalworking and machine manufacturing operations. This cluster is critical to San Diego crossing all sectors of the region s economy - military, tourism, and innovation - integrating state-of-the-art technologies with customized product development to meet the needs of those sectors. Businesses from different industry sectors use precision manufacturing suppliers as main elements to their operations to bolster innovation and productivity. With more than 2,800 manufacturers employing more than 91,000 workers, San Diego County is home to a diverse and growing manufacturing base. San Diego s unique positioning on the border of Mexico and adjacent to Imperial Valley provides an economically competitive landscape. Industry Highlights/Contributions Innovation Economy: Location of Manufacturing Firms According to the San Diego Assocation of Governments (SANDAG), the advanced manufacturing cluster has 4,416 jobs with the average wage of approximately $51,800. Federal government procurement contracts in areas such as advanced manufacturing are on the rise. Companies in this cluster in San Diego received more than $25.3 million of government procurement funds in 2010, nearly double the amount of funding in In the News Taylor Guitars Still Strumming Along As Example Of San Diego Manufacturing Success Read More... Genentech will spend $132 million to expand its Oceanside biotech drug manufacturing plant Read More... Key Companies Cubic Corp. D&K Engineering Kyocera Corp. Thermo Fisher General Atomics DJO Global TaylorMade Solar Turbines ViaSat Aqua Lung Connectory.com: Business-to-Business Information Tool Learn More - Connectory SOURCE: California Community Colleges - Economic & Workforce Development Sector Profile: Advanced Manufacturing 5

6 About San Diego Regional EDC For 50 years, San Diego Regional Economic Development Corporation (EDC) has mobilized business, government and civic leaders to maximize the region s economic prosperity and global competitiveness. We serve local companies by providing assistance with expansion plans, programs to help retain businesses, and advocacy for policies that enhance the region s economic competitiveness. We lead attraction efforts to bring new investment and new companies to the region. We collaborate with industry associations and economic development partners to organize cohesive approaches to regional issues. We market the unique assets of our bi-national region. EDC is a nonprofit corporation funded by more than 150 companies and public partners that are committed to enhancing regional prosperity. Their support enables us to spur job growth throughout the region and across significant sectors in our local economy innovation, military and tourism. We are determined to advance the region s future as a pillar of the global economy and a magnet for investment, talent and innovation. Contact us for more information: San Diego Regional Economic Development Corporation Office (619) Fax (619) info@sandiegobusiness.org B Street, 7th Floor San Diego, CA P: (619) E: info@sandiegobusiness.org