This document provides an overview of biotech industry statistics in Northern California and incentives available to attract and support biotech companies. It notes the large size and growth of the biotech cluster in the region. It then discusses various state, local, and utility incentives including tax credits, grants, workforce training programs, and energy efficiency programs. Key considerations for companies regarding workforce, financial decisions, and the incentives negotiation process are outlined.
Access a provocative presentation by renowned author and futurist Joel Kotkin about restoring the economic competitiveness of Los Angeles and California. This presentation was made during the 12th Annual SoCalBio Conference held on November 4, 2010 at the J W Marriott of L.A. Live. See: http://www.socalbio.org/SoCalBio_2010/Kotkin_Presentation.pdf
Access a provocative presentation by renowned author and futurist Joel Kotkin about restoring the economic competitiveness of Los Angeles and California. This presentation was made during the 12th Annual SoCalBio Conference held on November 4, 2010 at the J W Marriott of L.A. Live. See: http://www.socalbio.org/SoCalBio_2010/Kotkin_Presentation.pdf
An Introduction to Tale’awtxw Aboriginal Capital Corporation www.tacc.ca
An Aboriginal Affairs and Northern Development Canada (AANDC) program that is delivered in partnership with TACC. Non-repayable contributions issued on a project-by-project basis. Intended to improve ability of clients to obtain commercial financing at reasonable terms. From a lender’s point of view, makes a good loan better, as more security available to support loan.
Federal Incentives That Can Show You the MoneyCBIZ, Inc.
Federal Incentives That Can Show You the Money
As the country continues to fight its way out of the economic downturn, businesses and their owners are constantly looking for ways to increase cash flow. Several Federal tax incentives are available to help you meet this goal. Contrary to popular belief, you don’t need to be in a high-tech industry to benefit from the Research and Experimentation Credit. Nor do you need to place in service an entire “green” building to benefit from the Energy Efficient Commercial Buildings Deduction or other energy incentives. Even if your business currently isn’t producing taxable income, you may still be able to use these incentives to recover taxes paid in prior years or shelter future taxable income.
This presentation discusses key elements of:
• Research and Development Tax Credits
• Domestic Production Activities Deduction
• Energy Efficient Building Deduction
Michael Silvio is Managing Director with CBIZ MHM, LLC. He leads the San Diego and Orange
County offices’ Research & Development (R&D) and Energy Incentives Tax Credit Services Group.
Visit http://www.cbiz.com for more information or http://www.cbiz.com/page.asp?pid=9199.
Capture Up To $37,500 per New Hire in Tax CreditsCalChamber
http://www.calchamber.com brings you the slide deck for a webinar presented by our Tax Credit Services partner, Incentives Advisors for our members:
Capture Up To $37,500 Per New Hire in Tax Credits
As organizations’ budgets tighten in a competitive economy, there are ways to fund the investment in your workforce. Capture up to $37,500 per employee in state tax credits and $9,600 per eligible new hire in federal credits. Fund your training initiatives with cash grants available to California employers.
Learn How Employers Effectively Capture These Available Funds:
• What tax credits and grants are available to California Employers
• Challenges of capturing incentive programs
• How to capture more credits with less effort
• Available online resources
Incentives Advisors Tax Credit Services helps you tap government tax credit programs to improve your bottom line results. All CalChamber members have access to these partner benefits. Please call (800) 649-4921 for membership inquiries.
Have you received tax credits for your company? Please share your experience in the comment section below.
Roanoke Entrepreneur Express Franchising Workshop, November 6, 2009Sandy Ratliff
The Virginia Department of Business Assistance partnered with the City of Roanoke, Roanoke County, Virginia Western Community College, Roanoke Regional Partnership and Roanoke Regional Small Business Development Center to conduct the 5th Entrepreneur Express Workshop with a special section on franchising.
Mr. Carlos Rivera, President & CEO of Vysnova Partners, Inc, provides an overview of OCONUS operations as an Omnibus participant as well as key success points for supporting DoD support functions for programs overseas.
The power of one benefits and drawbacks of centralised share plan data slide...Andrea Huck-Esposito
Demands on share plan data are greater than ever before. With a growing necessity for supreme data integrity, it's time to explore the POWER OF ONE. See how HR, Legal, Finance and Payroll can be enabled through adopting a centralised hub.
[Webinar Slide Deck] How to Find Affordable Capital Growth PropertiesCarmen Mc Dermid
Slide Deck from the Real Estate Investar webinar co-hosted by Terry Ryder from Hotspotting: How to Find Affordable Capital Growth Properties. (Watch the replay here: https://blog.realestateinvestar.com.au/webinar-replay-how-to-find-affordable-capital-growth-properties)
Most investors are either priced out of inner or middle ring capital city suburbs or have to resort to sacrificing their lifestyle to be able to afford the out-of-pocket holding costs.
New growth corridors along vast tracts of land can result in an oversupply of development stock which drives down prices and creates rental slums. While boom-and-bust mining towns are best left to the property speculators.
Learn how to find and analyse affordable gentrifying areas which are primed to support solid sustained medium to long-term capital growth.
Understanding Community Economic Development in Teeny Tiny Places - Teeny Tin...Carolyn Puterbough
This Teeny Tiny Summit explored Community Economic Development activities and asset-based community economic development tools. Teeny Tiny Summits were started in 2016 as a forum to discuss scale-appropriate economic development strategies for Ontario’s smallest communities. Teeny Tiny Summits share practical examples, lessons learned and community economic development tactics. Since inception, the summits have been hosted in every region of the province and attracted over 2400 attendees both in person and virtually. Teeny Tiny Summits are offered by the Ontario Ministry of Agriculture, Food and Rural Affairs with support from the Rural Ontario Municipal Association (ROMA).
Teeny Tiny Summit March 1 2023 - Planning for Community VitalityCarolyn Puterbough
Teeny Tiny Summits were initiated in 2016 by Ontario Ministry of Agriculture, Food and Rural Affairs, as a forum to discuss scale-appropriate economic development strategies for Ontario’s smallest communities. In 2017, ROMA committed to multi-year support of the Teeny Tiny program. Teeny Tiny Summits share practical examples, lessons learned and community economic development tactics. Since inception, the summits have been hosted in every region of the province and attracted over 2,250 attendees both in person and virtually.
Planning for community economic development activities can help you realize your community’s vision. It allows for strategic use of the resources you have available and provides you with a clear path on how to accomplish your identified goals. A community-driven strategic planning process relies on partnerships, commitment, and community assets all coming together to provide a clear and achievable path to SUCCESS! This session will explore where to begin, critical elements to consider, lessons learned and positive outcomes in the community that resulted.
These are the slides used at the March 1 2023 Teeny Tiny Summit.
An Introduction to Tale’awtxw Aboriginal Capital Corporation www.tacc.ca
An Aboriginal Affairs and Northern Development Canada (AANDC) program that is delivered in partnership with TACC. Non-repayable contributions issued on a project-by-project basis. Intended to improve ability of clients to obtain commercial financing at reasonable terms. From a lender’s point of view, makes a good loan better, as more security available to support loan.
Federal Incentives That Can Show You the MoneyCBIZ, Inc.
Federal Incentives That Can Show You the Money
As the country continues to fight its way out of the economic downturn, businesses and their owners are constantly looking for ways to increase cash flow. Several Federal tax incentives are available to help you meet this goal. Contrary to popular belief, you don’t need to be in a high-tech industry to benefit from the Research and Experimentation Credit. Nor do you need to place in service an entire “green” building to benefit from the Energy Efficient Commercial Buildings Deduction or other energy incentives. Even if your business currently isn’t producing taxable income, you may still be able to use these incentives to recover taxes paid in prior years or shelter future taxable income.
This presentation discusses key elements of:
• Research and Development Tax Credits
• Domestic Production Activities Deduction
• Energy Efficient Building Deduction
Michael Silvio is Managing Director with CBIZ MHM, LLC. He leads the San Diego and Orange
County offices’ Research & Development (R&D) and Energy Incentives Tax Credit Services Group.
Visit http://www.cbiz.com for more information or http://www.cbiz.com/page.asp?pid=9199.
Capture Up To $37,500 per New Hire in Tax CreditsCalChamber
http://www.calchamber.com brings you the slide deck for a webinar presented by our Tax Credit Services partner, Incentives Advisors for our members:
Capture Up To $37,500 Per New Hire in Tax Credits
As organizations’ budgets tighten in a competitive economy, there are ways to fund the investment in your workforce. Capture up to $37,500 per employee in state tax credits and $9,600 per eligible new hire in federal credits. Fund your training initiatives with cash grants available to California employers.
Learn How Employers Effectively Capture These Available Funds:
• What tax credits and grants are available to California Employers
• Challenges of capturing incentive programs
• How to capture more credits with less effort
• Available online resources
Incentives Advisors Tax Credit Services helps you tap government tax credit programs to improve your bottom line results. All CalChamber members have access to these partner benefits. Please call (800) 649-4921 for membership inquiries.
Have you received tax credits for your company? Please share your experience in the comment section below.
Roanoke Entrepreneur Express Franchising Workshop, November 6, 2009Sandy Ratliff
The Virginia Department of Business Assistance partnered with the City of Roanoke, Roanoke County, Virginia Western Community College, Roanoke Regional Partnership and Roanoke Regional Small Business Development Center to conduct the 5th Entrepreneur Express Workshop with a special section on franchising.
Mr. Carlos Rivera, President & CEO of Vysnova Partners, Inc, provides an overview of OCONUS operations as an Omnibus participant as well as key success points for supporting DoD support functions for programs overseas.
The power of one benefits and drawbacks of centralised share plan data slide...Andrea Huck-Esposito
Demands on share plan data are greater than ever before. With a growing necessity for supreme data integrity, it's time to explore the POWER OF ONE. See how HR, Legal, Finance and Payroll can be enabled through adopting a centralised hub.
[Webinar Slide Deck] How to Find Affordable Capital Growth PropertiesCarmen Mc Dermid
Slide Deck from the Real Estate Investar webinar co-hosted by Terry Ryder from Hotspotting: How to Find Affordable Capital Growth Properties. (Watch the replay here: https://blog.realestateinvestar.com.au/webinar-replay-how-to-find-affordable-capital-growth-properties)
Most investors are either priced out of inner or middle ring capital city suburbs or have to resort to sacrificing their lifestyle to be able to afford the out-of-pocket holding costs.
New growth corridors along vast tracts of land can result in an oversupply of development stock which drives down prices and creates rental slums. While boom-and-bust mining towns are best left to the property speculators.
Learn how to find and analyse affordable gentrifying areas which are primed to support solid sustained medium to long-term capital growth.
Understanding Community Economic Development in Teeny Tiny Places - Teeny Tin...Carolyn Puterbough
This Teeny Tiny Summit explored Community Economic Development activities and asset-based community economic development tools. Teeny Tiny Summits were started in 2016 as a forum to discuss scale-appropriate economic development strategies for Ontario’s smallest communities. Teeny Tiny Summits share practical examples, lessons learned and community economic development tactics. Since inception, the summits have been hosted in every region of the province and attracted over 2400 attendees both in person and virtually. Teeny Tiny Summits are offered by the Ontario Ministry of Agriculture, Food and Rural Affairs with support from the Rural Ontario Municipal Association (ROMA).
Teeny Tiny Summit March 1 2023 - Planning for Community VitalityCarolyn Puterbough
Teeny Tiny Summits were initiated in 2016 by Ontario Ministry of Agriculture, Food and Rural Affairs, as a forum to discuss scale-appropriate economic development strategies for Ontario’s smallest communities. In 2017, ROMA committed to multi-year support of the Teeny Tiny program. Teeny Tiny Summits share practical examples, lessons learned and community economic development tactics. Since inception, the summits have been hosted in every region of the province and attracted over 2,250 attendees both in person and virtually.
Planning for community economic development activities can help you realize your community’s vision. It allows for strategic use of the resources you have available and provides you with a clear path on how to accomplish your identified goals. A community-driven strategic planning process relies on partnerships, commitment, and community assets all coming together to provide a clear and achievable path to SUCCESS! This session will explore where to begin, critical elements to consider, lessons learned and positive outcomes in the community that resulted.
These are the slides used at the March 1 2023 Teeny Tiny Summit.
2. Quick Facts
• Cetus, World’s first biotech
company was founded in
Emeryville in 1971
• Genentech opened its doors in
South San Francisco 32 years ago,
in 1976
• Over $6 billion in payroll
• 90,000 employees
• Average wage: $68,000
• Estimated 6,000 new jobs created
in the past twelve months
• Average time for FDA approval of
a new drug: 14 years
• Average cost for development of
a new drug: $800 million
4. Product Pipeline Comparison
Products in Phase II &
Phase III clinical trials
• Northern California 492
• New Jersey 445
• Massachusetts 287
• Southern California 235
5. Plan Your Work & Work Your Plan
• Process begins with project outline including:
• Don’t puff up these numbers – Remember “Claw backs”
Project capital investment
• Job creation over specific period of time
• Develop a Team & provide relevant company
information
• Ask for & get confidentiality Negotiate before you buy
property or sign a lease
• Public purpose – “But for” clauses
– Project Mercury Example
6. Key Considerations
• Labor force talent decision
– Hire locally, attract, retain & scale
– Trades – union & open/merit
shop
– Education support system
• High School – science, math &
biotech programs
• Community college – specialized
training & certification
• Financial decisions
– Land = One time cost that
appreciates in value
– Facility = Ability to quickly
construct & operate quietly
– Transportation access &
distribution
8. Who’s Who in
Economic Development?
• State & Local
– CABIS
• Labor (EDD) & BTH
– CALED
• Local government, non‐
profit private, WIB &
chambers of commerce
– Utility Companies (PG&E)
• Others
– International real estate
brokers, site consultants &
corporate real estate
managers
9. State Assistance
• CalBIS provides no‐fee site selection
services to employers, corporate real
estate executives, and site location
consultants who are considering
California for new business
investment.
• A wide array of consultation services
are offered, including:
Financial assistance and loan programs
Military and defense reuse zones Dave Freitas
Labor availability and education CalBIS Manager
information
State and local permit assistance Dave.Freitas@labor.ca.gov
Transportation and infrastructure
information http://www.labor.ca.gov/calBIS/
Information on tax credits and other
incentive programs http://www.calbusiness.ca.gov/cedpeybreyb
Economic and demographic data .asp
Business advocacy
11. Industry Association Assistance
• International & National
– BIO
• Regional
– BayBio
• Site Selection Network
– Location Management
Service
– Other Support Groups
• Bay Area Council
• CoreNet Global – NCAL
Chapter
12. What Makes Location?
• A cluster of biotechnology
– Available talent, scalable labor forces, available infrastructure, service firms &
a clear development path for on‐time delivery of a fully operational facility
that puts product into the marketplace.
• Communities with staff that have successful grown biotech
– Not want bee's communities who may or may not get the job done
• Remember – your job is on the line with your site recommendation
13. Talent – Job #1
• ISPE January CEO Night included Rob Carter, site head for Novartis
Biopharmaceutical Ops in Vacaville (Ex‐LA).
• Of particular note was his admiration of the “depth & breadth” of
talent present in the Bay Area to draw from.
• Novartis recent hiring program was totally Internet‐based & all hires
were from the Bay Area with no relocations from outside the area
Source: ISPE SF Chapter News Letter Volume 15 number 5
14. Incentives Make
Only “Marginal Difference”
• Incentives are NOT the
driving force in selecting
a location & should NOT
determine the ultimate
decision.
• A great incentive
package can NOT
transform a poor site
into a winning location.
15. Net Operating Loss Carryover
• California tax law allows businesses that
experience a loss for the year to carry this loss
forward to the next year in order to offset
income in the following years.
• New businesses can carry over 100 percent of
their losses for 10 years if the loss is in their
first year of operation.
http://www.ftb.ca.gov/forms/05_forms/05_3805qins.pdf
16. What is California's Research &
Development (R&D) Credit?
• The California R&D Credit reduces income or
franchise tax.
• You qualify for the credit if you paid or incurred
qualified research expenses while conducting
qualified research in California.
• You receive 15 percent of the excess of current
year research expenditures over a computed base
amount (minimum of 50 percent of current year
research expenses).
• You claim the credit on the return for the taxable
year you incurred the qualified expenses.
17. What are Tax/Financial Incentives?
• Some incentives are statutory while others are
discretionary – Know the difference when
negotiating
• Every state & most municipalities offer tax or
financial incentives to attract businesses that
make capital investments or create jobs or both.
• Incentive packages typically consist of primarily
state incentives with local support in the form of
tax abatements, permit fee reduction & priority of
entitlements.
18. Statutory Tax Incentives
• Statutory tax incentives include
• income and franchise tax credits such as job tax credits,
investment tax credits (MIC)
• apportionment factor adjustments and tax‐base modifications
• and incentives for locating in targeted economic development low
income or blighted areas.
• Statutory incentives are available to
• all companies that meet the qualifications
• engage in qualified activity
• and creates the job or payroll qualifications.
• Incentive requirements, which might relate to
• minimum job creation or capital investments are enacted by state
legislatures and vary accordingly
19. Discretionary Incentives
• Discretionary tax incentives are awarded on a case‐
by‐case basis to entice particularly desirable
employers to locate, relocate or expand in the area.
• Examples include state tax credits, enterprise zone
benefits, & property tax abatements
– Other discretionary incentives may include:
• Sales & use tax exemptions, budgeted infrastructure
improvements, human resource needs such as relocation
assistance, specialized training (ETP) or fast
track/permitting coordination
20. State Enterprise Zones & LAMBRA
• Up to 100% Net Operating Loss (NOL) carry‐forward. NOL may be
carried forward 15 years.
• Firms can earn $31,544 or more in state tax credits for each qualified
employee hired up to $2 million per year with a few provisions.
• 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, up to $40,000 annually.
• Unused tax credits can be applied to future tax years, stretching out
the benefit of the initial investment.
• LAMBRA communities also have community incentives as a part of the
business attraction package. Each community is marketing military
base existing buildings & property to attract expanding or locate new
businesses. The incentives may include the use of machinery, tools, or
office equipment left behind by the military.
– More information: http://www.hcd.ca.gov/fa/cdbg/ez/lambra/
22. Employment Training Panel (ETP)
• ETP prioritizes small businesses and employers in
high unemployment areas of the State.
• Since its inception in 1983, the ETP program has
provided over $1 billion to train more than 660,000
workers in over 60,000 California companies.
• Employer funded skills up‐grade or tech skills training
program
• Incentive to upgrade existing skills or scale up new
technical labor force
• http://www.etp.ca.gov/docs/flowchart.pdf
23. PG&E’S Energy Management
• An Energy Analysis – also referred to as an
“energy audit”
• Energy Efficiency Rebates PG&E offers rebates
for hundreds of energy‐efficient technologies in
multiple categories
• Customized Energy Efficiency/Demand Response
Incentive Application
• New Construction Design Assistance & Cash
Incentives
• Energy Management Education & Training
24. Energy Design Resources (EDR)
• is a collection of energy design tools &
resources funded by the rate payers of
California
– Administered by the major utilities in California.
• EDR resources for laboratories include
– design guides & case studies to assisting the
design of energy efficient labs.
• www.energydesignresources.com/category/h
ospitals‐labs
25. Additional Resources on Energy Efficiency
for Labs & Clean rooms
• Labs21 is a voluntary program sponsored by the
U.S. Environmental Protection Agency and the
U.S. Department of Energy.
– The goal of the program is to improve the energy
efficiency of labs in the U.S.
– Labs21 has developed a "tool kit" to provide design
guides, case studies, energy benchmarking
information, and other tools for optimizing energy
efficiency in labs.
• www.labs21century.gov
26. Local Incentives ‐ Fairfield
The City of Fairfield s has a pro‐business attitude that includes:
• assist firms in securing all necessary city development approvals
• assist in the issuance of Industrial Development Bonds for manufacturing
companies by facilitating meetings, assisting with preparation of the
program application, and expediting all necessary public hearings for the
issuance of the Bonds
• consider annual rebate of property taxes within Redevelopment Project
Areas
• Revolving Loan Fund, which offers long‐term 4‐7% fixed‐rate financing
• deferred the payment of water connection fees and AB1600 fees until a
certificate of occupancy is issued for a facility
• assist with the State Employment Training Panel (ETP)
• Workforce Investment Board (WIB) and local Employment Development
Department
• (MCC) that provides tax credits to first‐time homebuyer
• Mortgage Credit Certificate Program designed to assist low‐income first‐
time homebuyers
27. Local Incentives ‐ Vacaville
• Property Tax Rebate ‐ Redevelopment Agency
• Sales and Use Tax Rebate
• Water Connection Fee Reduction
• Prepayment of Sewer Connection Fee
• Defer Collection of Development Impact Fees Until Occupancy
• Financing of Development Impact Fees
• Underwriting Water Rates
• Reservation of Water and Sewer Capacity
• Water Availability not to impose rationing or restrictions on water usage
• Traffic option to reserve roadway capacity
• Approvals provide expedited processing of all applications for subsequent
approvals.
28. Finally ‐ Claw backs
• What if your project fails or doesn’t meet
expectations?
– Your Key reason for tracking incentives, reporting &
keeping your part of the location bargain
– Mostly “Claw backs or Paybacks” are found at the state
level but could be part of the local agreement
– Incentives given in the public interest of job creation &
would not happen “but for”
– Generally tied to investment & job creation at certain wage
levels or targeted unemployed