California Awards $100M in Tax Credits to Boost Manufacturing

November 19, 2025

Policy Finance Industrial News More West

The subsidies will bolster the state’s data center and aerospace production capabilities.

California Governor Gavin Newsom’s Office of Business and Economic Development has awarded $99.9 million in California Competes Tax Credits to nine companies across the state as part of its Jobs First initiative. These allocations are expected to generate about $370 million in private manufacturing investment.

Firms active within the aerospace, wastewater treatment and microelectronics fields, among others, absorbed the tax credits. An estimated 2,752 jobs will be generated through these subsidies.

Among these companies is Atomic Machines, a firm that earmarked $156.3 million for an expansion to its micro-electromechanical manufacturing plants in Santa Clara, Calif., Emeryville, Calif., and the Bay Area. It is headquartered in Berkeley, Calif., where, according to Yardi Matrix information, it occupies part of Laflife’s facility at 950 Gilman St.

Data center infrastructure manufacturer Bright Machines was also one of the firms that secured tax credits. The company partnered with Microsoft and NVIDIA on various projects, while BlackRock served as lead investor on one of its funding series. Bright Machines now plans to expand its production capabilities with a $62.9 million investment in Fremont, Calif.

In the aerospace manufacturing sector, Hadrian Automation obtained incentives as well. Out of the $260 million it had raised earlier this year as part of its Series C financing round, Hadrian set aside $52 million to expand its 500,000-square-foot headquarters in Torrance, Calif. Sares Regis owns the property.

Manufacturing tax credits are drawing investment

The Golden State has subsidized more than 1,200 businesses through its California Competes Tax Credits, resulting in private investment of more than $50 billion across the entire state.

Previous awards this year include $34.4 million in tax credits issued in June and $30.5 million in May. Notably, this last subsidy attracted $1.85 billion in investment through Element Resources’ development of a hydrogen fuel advanced manufacturing plant in Lancaster, Calif.