News Column

Inland Calif. Companies Get Tax Credits

June 23, 2014

Jack Katzanek, The Press-Enterprise

June 21--Several Inland Southern California businesses -- including three distribution complexes in Moreno Valley and several smaller firms -- were among those selected for the first round of tax breaks designed to spur job development, it was announced Thursday.

The California Competes Tax Credit Committee approved nearly $29 million in tax credits for businesses. This is part of a state initiative enacted after the Enterprise Zone program was stopped last year by Gov. Jerry Brown.

A tax credit of $1.575 million, fourth-highest of any awarded, went to Amazon Fulfillment Services to support the online retailer's plan to hire 1,550 people in warehouses in Moreno Valley, San Bernardino, Tracy and Newark., which ships vitamins and herbal supplements from a Moreno Valley distribution center to more than 1 million customers worldwide, will get an $815,000 tax credit based on plans to hire 150 new employees. Deckers Outdoor Corp. will add 125 people at facilities in Moreno Valley and Goleta thanks to an $800,000 tax credit.

Another business with a Moreno Valley distribution center is seeking a tax credit, but the decision has been postponed. The Associated Press reported that a subsidiary of grocery company Aldi had been seeking a $700,000 credit, but it was opposed by the labor representative to the committee who said Aldi would pay its grocery workers below the market rate.

Aldi plans to open 30 grocery stores in Southern California next year. According to the wire report, the German-owned company had said it would hire 182 people because of the tax break. Among the criteria for qualifying were competitive wage rates and benefit packages.

Other Inland area firms selected were BST NanoCarbon, located in Temecula and San Diego, which will get a $1.45 million credit to hire 632 people; Fontana sheet metal shop Lynam Industries, with a $68,000 credit to hire 69 and CTP Transportation Products, an Ontario wheel manufacturer that will hire 33 with a $150,000 credit.

Companies selected also included large firms like Samsung, Petco and Novartis, along with a pet cremation service in Gilroy that will add five workers.

The second round of tax breaks, for the 2014-15 fiscal year, will offer five times as much money, with more in the two ensuing fiscal years.

Contact the writer: 951 368-9553 or at


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Original headline: Inland businesses get tax credits

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Source: (c)2014 The Press-Enterprise (Riverside, Calif.)

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