Aerospace & Defense
California has deep roots in the Aerospace and Defense industries and continues to provide the critical infrastructure the Department of Defense relies on to protect our national security. National security activity generates nearly 771,000 direct and indirect jobs for California citizens and produces a total economic impact of $190B1.
California ranks #1 in total number of defense personnel and defense grant spending, and among the top states in total contract and personnel spending. These measures demonstrate the enormous importance of national security to the California economy and workforce.2
Developments by private industry in commercial space operations, expansion of air superiority defense programs and the emergence of cybersecurity demands will only deepen the connection between these businesses and California. Our office is focused on growing the talent to meet industry needs, expanding and improving critical infrastructure, and partnering with our companies, military installations, local governments and state agencies to build on our illustrious history and generate market opportunities in California.
What’s New…
Central Coast Space Master Plan
Central Coast to ‘Public, private, and academic partners are working to leverage regional defense assets on California’s Central Coast for transformational economic development. Solidified through a Memorandum of Understanding, the regional coalition advances the goals of the Space Master Plan.
Space Industry Task Force
In 2022, Governor Newsom announced a taskforce comprising of GO-Biz and the Governor’s Military Council. The Space Industry Task Force aims to grow the California space industry by attracting new businesses, supporting existing companies, expanding research and development, and building partnerships with higher education, defense, and the private space sector. Connect with GO-Biz for more information.
Popular Programs
California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses who want to relocate, stay, or grow in California. Our team provides no-cost consultations to see if your business qualifies.
Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.
Research & Development Tax Credit
A business may qualify for an income tax credit if it paid for or incurred qualified research expenses while conducting qualified research activity in California. Qualified research expenses include wages, supplies, and contract research costs.
References
1. California Research Bureau, “2023 California Statewide National Security Economic Impacts Study”, November 2023
2. Office of Local Defense Community Cooperation – Defense Spending by State, FY 2022
3. Bureau of Labor Statistics, “Occupational Employment and Wages, May 2023, 17-2011 Aerospace Engineers
4. NASA, “NASA Centers and Facilities,” accessed May 10, 2024
5. US News and World Report, “Best Aerospace Engineering Programs,” ranked in 2023, accessed May, 2024