California Awards Tax Credits for Port, Hydrogen Projects
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California Gov. Gavin Newsom awarded a $29.3 million tax credit package to seven companies, including $1.5 million for a hydrogen fuel facility and $800,000 to expand Port Hueneme’s logistics and supply chain infrastructure.
The business incentives were awarded by the Governor’s Office of Business and Economic Development (GO-Biz) from income tax credits through the California Competes Tax Credit program. Tax credits are given to companies to open shop in California or expand activities there.
“California is where innovation meets opportunity — and these investments prove it,” Newsom announced May 2. “From clean energy to advanced manufacturing, these companies are creating good-paying jobs and driving billions in private investment.”
The seven companies are expected to invest a total of $2.1 billion in several industries.
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Marine Terminals Corp. was awarded an $800,000 tax credit for an $8 million investment in heavy equipment and hiring three full-time employees as part of its expansion at Port Hueneme. The port is owned by the Oxnard Harbor District and is the only deepwater port between Los Angeles and the San Francisco Bay Area.
Located in Ventura County 60 miles north of Los Angeles, the port is the top West Coast port handling bananas — celebrated with an annual banana festival — since 664,000 tons of bananas pass through there from 155 ships per year. The port also handles other fruit, auto imports/exports, liquid bulk fertilizer, and farm and other heavy equipment.
Another income tax credit for $1.5 million was awarded to Element Lancaster 1 for its plan to invest $1.85 billion in a hydrogen fuel manufacturing project that will include hiring three full-time employees and purchasing manufacturing equipment.
A rendering of the Element Lancaster 1 hydrogen manufacturing project. (City of Lancaster)
The facility will be located in the city of Lancaster in northern Los Angeles County on the western fringe of the Mojave Desert. City officials in March 2024 approved a partnership pact to create the Lancaster Clean Energy Center to produce hydrogen. The two-phase project will occupy 1,338 acres with photovoltaic solar power arrays and a hydrogen production plant that will include liquefied and gaseous hydrogen storage.
“On-site, there will be two cylindrical tanks and three spherical liquefied hydrogen storage tanks, facilities for filling hydrogen transport trailers and zero-emission hydrogen vehicles and trucks, control and office buildings, warehouse and service buildings, and cooling towers,” noted a 2024 city announcement.
Texas-based Element Resources Inc. is a development company focused on producing 100% green hydrogen and has a San Diego office. The company aims for the Lancaster Clean Energy Center to be the largest green hydrogen production facility in the United States.
The California Competes Tax Credit program has awarded tax credits to 1,200 businesses since 2013 that have invested $50 billion in the state. Companies that win awards enter into a five-year agreement in which they must agree to complete annual milestones for full-time employment, salary levels and project investment each year to earn the tax credit.
“These awards reflect the incredible diversity and strength of California’s economy,” said Dee Dee Myers, senior adviser to the governor and GO-Biz director.
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