Economic Outlook n° 1187 | Special Report | The Reindustrialization of the United States
Euler Hermes
wable energy production, effectively making Califor- nia a hotbed of renewable energy and energy effi- ciency innovations.” The state has also established the California “million solar roofs initiative” aiming to create one million solar roofs in California by 2018.
▶ Other incentives California is trying to lure manufacturing jobs back to the states with many different programs. One such effort is the “Innovation Hub,” which according to the state government “seeks to improve the state's natio- nal and global competitiveness by stimulating part- nerships, economic development and job creation around specific research clusters throughout the state.”. Innovation Hubs “target young, innovative companies that have been in business for less than eight years in a technology cluster…”. Other efforts include Industrial Development Bonds and Small Business Loan Guarantees.
The state government is currently providing a menu of tax incentives to lure manufacturing to California as well. These include a Research and Development Tax Credit, a Film and TV Production Tax Credit, a Work Opportunity Tax Credit, a Net Operating Loss Carryover provision and finally, in an attempt to fur- ther promote “green energy”, the state is offering Sales & Use Tax Exemptions for Clean Tech Manu- facturing.
▶ Exports
To support exports, the state has twelve cargo airports and eleven cargo seaports including the two largest in the nation, the ports of Los Angeles and Long Beach. The state’s 17 Foreign Trade Zones (FTZ) are intended to pro- mote exports by delaying, or even foregoing export or import taxes and duties. The computer and electronics manufacturing industry is of course well represented in exports, comprising 29% of the state’s total. California’s top export markets include the stable Canadian economy and the more rapidly growing economies of Mexico, China and South Korea.▣