Riverside County Supervisors Marion Ashley and Jeff Stone Tuesday will propose incentives packages intended to draw manufacturers and aviation industry enterprises to the region to boost employment.
The supervisors are seeking their colleagues' support for near-term implementation of a Manufacturers & Investors Tax Incentive -- MIT -- as well as creation of Aviation Incentive Zones.
Under the MIT, manufacturing and technology firms that invest $100,000 in land, facilities and equipment, or employ a minimum of four full-time employees and pay them 140 percent of the state minimum wage, would be entitled to receive credits on all their county sales taxes.
The supervisors provided an example of a manufacturer's sales netting $1 million in taxes to the county and state. Under the incentives plan, the county portion -- $10,000 -- would be rebated to the firm.
However, the 100 percent rebate would only apply in the first year. Rebates would ladder down in the ensuing years: 75 percent in year two, 50 percent in year three, 25 percent in year four. By year five, the rebates would be abrogated.
"This modest incentive will increase revenue to the county property tax rolls, income tax rolls, and help create indirect and induced jobs," the supervisors wrote.
Similarly, the Aviation Incentives Zones would be carved out for parts suppliers and manufacturers whose products are geared to the aeronautics industry.
Enterprises that base their operations at or in close proximity to county-owned airports would benefit from tax incentives, low-cost leases and expedited handling of permit requests, according to the supervisors.
"The aviation sector of the county economy is growing, adding new jobs and investments along the way," they said. "We seek to expand this important sector of our economy as it serves the international and domestic commercial, civilian and military aviation markets."
Any manufacturing or aviation-related business would have to be conducted in unincorporated areas to receive the incentives.
The supervisors will request that the programs be ready for implementation in four to five months, around the end of the current fiscal year. The proposed sunset dates for both programs would be 2024.
— City News Service.