For breweries looking for startup funding, don’t forget to check with the local economic development agency in your city, county or state because it could unlock several thousands in savings and incentives. For example, Long Beach, Calif.’s Trademark Brewing successfully closed an SBA 7a loan financing in late May, but debt financing and loans were only part of the equation. According to Marshall Lebovits of Asset Based Funding Solutions, who worked with Trademark on its startup funding, the brewery was eligible for four economic incentives through the state of California that will generate tens of thousands in additional savings.
Advanced Manufacturing Full Sales & Use Tax Exclusion
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) supports California’s mission to provide financial incentives to cutting-edge companies by offering California manufacturers a sales and use tax exclusion ranging from 7.5 to 10.25 percent of the purchase price of qualifying equipment, systems and components that promote alternative energy and advanced transportation. This program is currently authorized through 2020.
Partial Sales Tax Exemption – Manufacturing, Biotech and R&D
Beginning on July 1, 2014, manufacturers and certain research and developers may qualify for a partial exemption of sales and use tax totaling 3.9 percent on certain manufacturing and research and development equipment purchases and leases.
California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements are negotiated by GO-Biz and approved by a statutorily created California Competes Tax Credit Committee. You may be a good candidate if your company is investing in infrastructure, new equipment and growing its workforce. The next round for submitting an application should open in late July 2018.
California Employment Training Panel (ETP)
This program provides funding to employers to assist in upgrading the skills of their workers through training that leads to good paying long-term jobs. The ETP is a funding agency, not a training agency. Businesses determine their own training needs and how to provide training. The program rewards a company for investing in workforce training and is funded by a portion of the unemployment insurance tax that the company pays for its employees.
Who knows what treasures await in your state or city? It’s always a good idea to contact a professional to help you unearth any additional funding incentives or tax credits as well as structure financing terms that make sense for your business.
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