Incentives Available to Ontario Manufacturers
Manufacturing jobs in Ontario, California account for nearly 12 percent of the total jobs in the city, employing roughly 11,000 people. This is a figure that both the City of Ontario and State of California want to continue to see increase. After all, the Manufacturing Industry is critical to a healthy economy because:
- It pays good wages. In San Bernardino County, manufacturing jobs in 2014 paid on average $23 per hour, according to the US Census Bureau.
- It creates supply and demand for raw materials.
- It allows the country to export more and rely less on imports, which equates to generating wealth for the region.
- It is a job multiplier.
How the City of Ontario Supports Manufacturers
Here are a few ways the government is supporting growth in manufacturing:
- The City of Ontario supports manufacturers by having a dedicated Economic Development staff to personally assist with their needs to expand, including site selection service, free consultation on benefits of the Foreign Trade Zone and connecting businesses with the right resources. To learn more, contact Economic Development staff by visiting our staff page, or calling (909) 395-2005
How the State of California Supports Manufacturers
There are a number of resources available through the State of California. Effective July 1, 2014, any company engaged in manufacturing or bio-technology research and development, and who purchases food processing equipment, food processing R&D equipment, manufacturing R&D equipment, biotech manufacturing and R&D equipment and/or performs necessary tenant improvements (ex: clean rooms for biotech, manufacturing, etc.) is eligible for the State Sales and Use Tax Exemption. That means that a qualified business would be allowed to exclude the 4.19% share of sales tax from any equipment purchase totaling $200 million or less. This exemption is authorized until 2022. Example: If a qualifying company purchases a piece of equipment for $100,000, the company would save $4,190.
How to Access State Incentive
So how does a business take advantage of this incentive? Simple. Download and complete this one page sheet from the Board of Equalization. The application will ask for information on both the seller of the equipment and of the purchaser. For more information, click here