California Advanced Manufacturing Incentive Programs

1. Drive Forward Initiative – California Air Resources Board (CARB)

For light, medium and heavy-duty vehicles focused on air quality, climate, environmental and vehicle standards, and public health. Supports vehicle regulations, incentive programs, outreach, education, and cross-sector collaboration.

Deadline: N/A (ongoing initiative)

Website: Drive Forward | California Air Resources Board


2. Light-Duty Vehicles under CALSTART- Charge@Work & Power Forward

Focuses on cutting emissions and growing the zero-emission vehicle market through public/private partnerships. Includes state and federal incentives.

Deadline: Varies by incentive

Website: Charge@Work — Powering Workplace ChargingPower Forward – Home


3. California Hub for Energy Efficiency Financing (CHEEF)

Public-private partnership offering financial incentives for energy efficiency upgrades to residential, business, and multifamily property owners.

Deadline: N/A (ongoing)

Website: GoGreen Financing | State of California Office of the State Treasurer


4. Property Assessed Clean Energy (PACE) Loss Reserve Program – California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA)

Financing energy/water efficiency and clean energy home improvements. No down payment required. Repayment via property tax bills. Four enrolled PACE programs are active.

Deadline: Application available now (rolling)

Website: Property Assessed Clean Energy (PACE) Loss Reserve Program | State of California Office of the State Treasurer

Additional: List of Enrolled PACE Programs | State of California Office of the State TreasurerPACE Program Application


5. California Competes Tax Credit (CCTC) – GO-Biz

Income tax credit for businesses staying or relocating to California. Competitive application evaluated on job creation, investment, and strategic importance.

Deadline: FY 2025-2026 application periods (all have passed as of March 2026) - Next fiscal year periods TBA – check website for updates

Website: California Competes | California Governor’s Office of Business and Economic Development


6. Chapter 34 – Exemptions to California Environmental Quality Act (CEQA)

CEQA compliance guide for agencies determining exemption criteria and processing Categorical Exemption (CE) documentation for Caltrans projects.

Deadline: 35-day statute of limitations from filing/listing of Notice of Exemption

Website: Chapter 34 - Exemptions to CEQA | Caltrans


7. California Jobs First (Thrive Inland SoCal)

This initiative is spread across 13 regions in California. The Inland Empire is the 11th region which focuses on creating accessible, sustainable, and high-quality jobs, resources and opportunities available regardless of background or circumstances. In the Inland Empire, the Thrive Inland SoCal initiative brings together regional partners, including Inland Economic Growth and Opportunity (IEGO), the Inland Empire Labor Institute (IELI), the Inland Empire Community Foundation (IECF), the University of California, Riverside, the Brookings Institution, the Center for Sustainable Energy, and Loma Linda University, to advance economic development, workforce opportunities, and regional collaboration. As part of this initiative, Thrive Inland SoCal received a $14 million Catalyst Fund, including $9 million dedicated to supporting advanced sector projects at various stages of development.

Deadline: Varies by project – check Catalyst Fund page

Website: California advances Jobs First agenda, expands career pathways and worker protections statewide | Governor of California

Additional: CATALYST FUND | Thrive Inland SoCalThrive One Pagers


8. CaliforniaFIRST

The CaliforniaFIRST initiative provides homeowner financial incentive programs for those looking for energy efficient and safety related home improvement projects. The financial incentive program is through Property Assessed Clean Energy in partnership with Renew Financial. Through PACE, homeowners can finance projects like heating and cooling upgrades, energy efficient roofs and windows, solar, water-saving, and seismic retrofitting for their homes. Homeowners can apply for the program online or through phone, select approved, registered contractors through Renew Financial, sign electronically, begin and end projects, and repay through the fixed financed amount through property taxes.

Deadline: N/A

Website: CaliforniaFIRST: PACE Financing for California | Renew Financial


9. Cap and Invest Program - CARB / Manufacturing Decarbonization Incentive Fund

Under the program, the Manufacturing Decarbonization Incentive Fund would potentially provide $4 billion in supporting investments and business and making up for the loss of federal incentives in California. Projects include (cement, steel, food processing, etc.) to replace fossil-fueled equipment, use low-carbon hydrogen, renewable energy, carbon capture, and methane reductions.

Deadline: N/A

Website: Cap-and-Invest Program | California Air Resources Board

Additional: Manufacturing Decarbonization Incentive Fund FAQ


10. California Research - California Franchise Tax Board

Based on the federal research tax credit but with a requirement where qualified research activities and expenses must be based in California. Qualified research for businesses can include wages, supplies, and contract research costs. There are two types of tax credit rates that are equal to the sum of either 15% of qualified expenses that exceed a base amount for a business or 24% of basic research payments.

Deadline: N/A

Website: California research | FTB.ca.gov

Additional: 2025 Form 3523 Research Credit, What Is the California Research and Development Tax Credit? - LegalClarity


11. California Department of Tax and Fee Administration (CDTFA)

An equipment savings program that offers a 3.9375% sales tax exemption by the California Department of Tax and Fee Administration (CDTFA). This exemption is for basic manufacturing equipment which also includes food processing, research and development, and biotechnology.

Deadline: July 2030

Website: Sales And Use Tax Law - Section 6377.1

Additional: Claiming California Partial Sales and Use Tax Exemption | Controller's Office, Partial Exemption Certificate for Manufacturing and Research and Development Equipment, Manufacturing Incentives Under 20M, Partial Exemption


12. Industrial Development Bonds (IDBs) – Ibank

A tax-exemption and financing up to $10 million for qualifying private manufacturing and processing companies towards acquisition, construction, rehabilitation, and equipment.

Deadline: N/A

Website: Industrial Development Bonds | California Infrastructure and Economic Development Bank (IBank)

Additional: Industrial Development Bonds (IDBs) / Manufacturing | California Public Finance Authority


13. Manufacturing Bonds – Ibank

For manufacturing projects exceeding the $10M IDB cap. Federally taxable bonds considered. Manufacturing companies are encouraged to verify all possible options for funding

Deadline: N/A (ongoing)

Website: Industrial Development Bonds | California Infrastructure and Economic Development Bank (IBank)


14. Clean Truck and Bus Voucher Incentive Project (HVIP) – CARB

Part of a larger statewide initiative of the California Climate Investments where Cap-and-Invest Funding goes directly towards reducing greenhouse gas emissions, economic growth, and public health and environmental improvement. There are two paths available under HVIP; Fleet Owners and Purchasers for upfront, reduced costs for environmentally cleaner vehicles; and Vehicle and Equipment Dealers that allows dealers to be HVIP-approved dealer and ability to give customers a point-of-sale discounts for trucks and buses that are zero-emission

Deadline: Rolling – sign up for funding notifications

Website: Home - Clean Truck and Bus Voucher Incentive Project | California HVIP

Additional: Purchasers - Clean Truck and Bus Voucher Incentive Project | California HVIP, Dealers - Clean Truck and Bus Voucher Incentive Project | California HVIP


15. Sales and Use Tax Exclusion (STE) Program – CAEATFA / State Treasurer

Sales and use tax exclusion for manufacturers of alternative energy and advanced transportation technologies. Covers new facility construction, expansion, or upgrades. Program authorized through Jan 1, 2028.

Deadline: August 28, 2026, Tentative application deadlines

Website: Sales and Use Tax Exclusion (STE) Program Home Page | State of California Office of the State Treasurer