In separate actions, the state has extended tax incentives to companies in two very different areas near San Diego Bay ,Point Loma’s Naval Training Center and certain South Bay neighborhoods.
A state agency declared NTC a special tax zone Jan. 30, ruling that businesses setting up shop at the former base will get certain tax breaks.
The city of San Diego sought the zone from the California Technology, Trade and Commerce Agency, which granted the request.
The McMillin Cos. of National City is the city’s master developer for the 412-acre, $500 million NTC redevelopment project, which is just getting off the ground. Plans call for putting hotel, office, service and retail space at NTC along with housing, parkland and other civic and recreational space.
The Technology, Trade and Commerce Agency last week also approved a request to expand the benefits of the San Ysidro/Otay Mesa Enterprise Zone to 577 acres on either side of the San Diego/Chula Vista border.
Corporations like the BFGoodrich Co., Raytheon Co. and Duke Energy sit on property that has been marked for the tax breaks. Other land awaits commercial development.
A state spokesman said the South Bay designation is retroactive to Dec. 5 and comes at the request of the cities of San Diego and Chula Vista as well as the San Diego Unified Port District.
Both the NTC and South Bay zones offer companies within zone boundaries sales tax credits for multimillion-dollar machinery purchases, and state tax credits for employing certain people.
Companies that incur losses from operations within the zones can get 100 percent net operating loss carry-forward for 15 years. In normal circumstances the state offers less of a percentage for fewer years.
In addition, companies within the zones may save any unused tax credits for future tax years.
The tax breaks are valid for a limited time. The NTC zone lasts for eight years. The San Ysidro/Otay Mesa Enterprise zone will expire in six years but might be extended by the Legislature.
The NTC zone is known formally as a Local Area Military Base Recovery Area. California has eight such zones, including a former naval shipyard in the Bay Area and several closed military air bases.
McMillin and the city of San Diego will encourage four categories of businesses at the former base, according to representatives of both entities. Those specialties are financial and business services, telecommunications, defense and space manufacturing, and software development.