California Governor Gavin Newsom yesterday announced nearly $100 million in tax credits spread across nine companies to create new jobs and strengthen manufacturing in the Golden State.
The Governor's Office of Business and Economic Development awarded $99.9 million in California Competes Tax Credits to support the creation of some 2,752 new jobs, with an average weighted annual salary of $139,000. According to Governor Newsom, the investment will fetch more than $370 million in new private money.
The credits are used to keep the business and jobs in the state; the recipients actually have to certify that, without the money, the project may have occurred in another state.
The credits are also contingent on hitting specific goals, such as hiring full-time employees from within the state, meeting wage targets, making capital and equipment improvements, and retaining the new jobs for at least three years. It doesn't always pan out, as noted by the more than $90 million in tax credits the state is trying to claw back, or "recapture," from 17 companies that failed to deliver their end of the deal.
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So, who is getting what?
Atomic Machines is receiving $15 million in credits to invest $156.3 million to expand its micro-electromechanical system manufacturing facilities in Santa Clara, Emeryville and the Greater East Bay Area, creating 305 new jobs in the process. On its site, the stealth-mode startup says it's on a journey to make the machines that make everything.
Bright Machines will grab $7 million to scale its data center infrastructure manufacturing facility in Fremont. The company plans to flip the switch on a $62.9 million investment and create 295 jobs in the process. The company said it has been spurred by the U.S. tariff situation, accelerating reshoring efforts, as well as an over-reliance on Asian partners in the supply chain and the general explosion in AI compute growth, which simply demands production closer to the source.
Hadrian Automation will land nearly $49 million to create 650 jobs in Torrance and Northern California to expand aerospace component manufacturing. The company is targeting a $52 million investment.
Bella Phytologic will ingest a $1 million tax credit to create 82 new jobs following a $33 million investment in its vitamin and supplement manufacturing facilities in the state.
Gimme Health Foods plans to gobble up $2.8 million in tax credits to build a seaweed food and snack manufacturing facility in Madera, expand its San Rafael headquarters, and create 102 jobs in the process. The family-owned company that is known for making roasted seaweed snacks will plunk down $20 million to make it happen.
Pacific Scientific Energetic Materials Company is investing $18 million to electrify its diagnostic and measurement device manufacturing facility in Hollister. The company will be floated $2.4 million to add 97 jobs. The company designs, develops and manufactures advanced pyrotechnic components and subsystems, like the Underwater Emergency Egress System, a severance assembly device that helps pilots and crew escape from inside a helicopter when it is underwater.
Community Infrastructure Investment Group will invest $12.8 million to establish its wastewater treatment equipment manufacturing facility in Fresno. They'll scoop up $2 million to create 47 new jobs.
True Anomaly will help its satellite manufacturing facilities take off in Long Beach, creating 400 jobs along with a $12.7 million investment after receiving a $12.3 million credit.
Finally, Color Image Apparel, a clothing design and manufacturer, will expand its Beverly Hills headquarters, adding 774 jobs and making $2.5 million in investments. The company will receive nearly three times its investment, folding in a $6 million tax credit.
California manufacturing created some $405.6 billion in output last year and employed more than 1.24 million workers.
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