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Saturday, May 21, 2022

Local Businesses Receive State Tax Credits

Japanese light-rail manufacturer Kinkisharyo USA Inc., aerospace giant Northrop Grumman Corp. and financial software developer Blackline Systems Inc. were among companies with Valley-area operations receiving state job tax credits this week. The Governor’s Office of Business and Economic Development, or GO-Biz, approved California Competes tax credits totaling $69 million for 93 companies. The amount of the tax credit is tied to future capital investment, employee growth, and economic impact to the state. Kinkisharyo, the El Segundo-based U.S. arm of Kinki Sharyo Co. Ltd. in Osaka, is assembling more than 200 rail cars in Palmdale to fill an order for Los Angeles County Metropolitan Transportation Authority. The company will receive $417,000 in credits for tax years 2015 through 2019 in consideration for $12 million in equipment purchases and facility improvements. Kinkisharyo had previously received $360,000 in credits from the California Competes program. Northrop Grumman, which is based in Falls Church, Va. but has operations in Palmdale and Woodland Hills, received $10 million in tax credits for a five year period starting this year. The company will invest more than $500 million in manufacturing, computer and electrical equipment, and improvements at seven California facilities, including Palmdale, where the Global Hawk drone is built, and Woodland Hills, headquarters for the navigation systems division. Michael E. Rossi, chairman of the California Competes Tax Credit committee, called the program one of the most effective tools for encouraging companies to expand and add jobs. “California is projected to allocate over $650 million in targeted tax credits over the next four years which will continue to spur job creation and investment across the state,” Rossi said in a prepared statement released Thursday. The five-member committee has approved $129 million in tax credits to 178 companies since the program started last June. Also receiving tax credits are Blackline Systems, in Woodland Hills, for $1.1 million; diagnostic test manufacturer EntroGen Inc., in Woodland Hills, for $320,000; aerospace air duct systems manufacturer Senior Operations SSP, in Burbank, for $100,000; online educational services provider Lynda.com Inc., with operations in Calabasas, for $750,000; and entertainment company Viacom International Inc., with operations in Burbank, for $1 million.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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