If your business is located in a fully-designated local agency military base recovery area (LAMBRA), then you may be eligible for the following program incentives.
• Up to 100% Net Operating Loss (NOL) carry-forward; may be carried forward for 15 years.
• State tax credits for each qualified employee hired up to $2 million per year with a few provisions.
• Corporations can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts.
• Upfront expensing of certain depreciable property, up to $40,000 annually.
• Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment.
In addition to these California tax credits, many LAMBRA communities also offer local incentives as a part of their business attraction package. These can include base properties and buildings and the use of machinery, tools, or office equipment left behind by the military.
American Tax-Credits Group can help you determine your eligibility and assist you in receiving the maximum incentives and benefits. To date, three of the eight LAMBRA zones have been awarded a final LAMBRA designation. These fully designated LAMBRAs are operational and can offer businesses a wide range of incentives. They are Castle Air Force Base in Merced, George Air Force Base in Victorville, and Mare Island Naval Shipyard in Vallejo.
Alameda Naval Air Station in Alameda, the Tustin Marine Corps Air Station in Tustin, Norton Air Force Base in San Bernardino, and Mather Field and McClellan Air Force Bases (single designation for both bases) have been awarded conditional designation. All three former bases will be finally designated after the Environmental Impact Statement/Environmental Impact Report are completed and submitted to the Agency. Final designation entitles businesses locating in a LAMBRA to claim the tax credits.