Businesses planning to establish or expand their facilities in Poway are encouraged to arrange a pre-development meeting with Development Services and Economic Development staff to better understand City requirements for specific sites. This may help identify potential challenges, or efficiencies – doing so during the project design phase can save time, effort, and money, in the long run. To schedule a pre-development meeting, contact Craig Ruiz, Economic Development Administrator at Craig Ruiz email or (858) 668-4509.
The San Diego Workforce Partnership and our America's Job Center of California (AJCC) network can help you hire and/or train qualified workers. The Workforce Partnership's Business Services Team will work with private businesses to determine the best approach in meeting your organization's employment and training needs — at no cost. More information can be found at the San Diego Workforce Partnership website.
Manufacturers and certain research and developers may now obtain a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases through the State of California Manufacturing Exemption program. The Program, administered by the State of California's Board of Equalization, provides qualified businesses a 4.19% sales and use tax exemption, for qualified purposes (4.19% is from the State's portion of sales tax). Generally, the Program includes businesses engaged in all forms of manufacturing, research and development in biotechnology, research and development in the physical, engineering and life sciences, and food processing. The sales and use tax exemption can also be applied to construction contracts that will use the items purchased as an integral part of the manufacturing, processing, refining, fabricating or recycling processes, or as a research or storage facility in connection with those processes. Find more information.
The State of California also administers the California Competes Tax Credit. This program is different from the "Manufacturers Exemption" program. All industries can apply for the tax credits. There are no geographic or sector-specific restrictions. The purpose of the California Competes Tax Credit is to attract and retain high-value employers in California in industries with high economic multipliers and that provide their employees good wages and benefits. For more information, click here.
Industrial Development Bond Financing
Industrial Development Bonds (IDBs) are available as a business resource through the City of Poway. IDBs provide manufacturing and processing companies low-cost, low-interest financing for capital expenditures. Eligible capital expenditures include the acquisition of land, building construction, building renovation and the purchase of machinery and equipment. IDBs are conduit tax-exempt and taxable bond financings for private business at tax exempt rates for certain types of projects and improvements. The term of IDBs can be structured for 10 to 15 years, which can help ease the burden of debt service payments. IDBs are limited to a maximum amount of $20 million. To issue IDBs the City of Poway works with the California Enterprise Development Authority, the California Municipal Finance Authority, and the California Infrastructure and Economic Development Bank. The project financed by the bonds must be a facility used for the manufacturing, production or processing of tangible property (including the processing resulting in the change of such property). No more than 25 percent of the bond proceeds can be applied to ancillary office, warehouse or other space.
PACE financing allows property owners to fund energy efficiency, water efficiency and renewable energy projects with no up-front costs. PACE financing provides up to 100% financing of their qualified projects which can be paid back over time as a voluntary property tax assessment through their existing property tax bill. It allows up to 20% of a property's value to be financed for energy efficiency, renewable energy, or water conservation upgrades. The financing creates an assessment lien on the property and is repaid as semi-annual installments on the property tax bill. Figtree Financing and California First Energy Financing can provide more information on PACE financing for commercial properties located in the City of Poway.