Aerospace & Defense


Total Economic Impact1


of Total US Defense Spending2

Aerospace & Defense

California has deep roots in the Aerospace and Defense industries and continues to provide the critical infrastructure the Department of Defense relies on to protect our national security. National security activity generates nearly 762,000 direct and indirect jobs for California citizens and produces a total economic impact of $158B1.

California ranks #1 in total number of defense personnel and defense grant spending, and among the top states in total contract and personnel spending. These measures demonstrate the enormous importance of national security to the California economy and workforce.2

Developments by private industry in commercial space operations, expansion of air superiority defense programs and the emergence of cybersecurity demands will only deepen the connection between these businesses and California. Our office is focused on growing the talent to meet industry needs, expanding and improving critical infrastructure, and partnering with our companies, military installations, local governments and state agencies to build on our illustrious history and generate market opportunities in California.

What’s New…

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Regional Initiative: Central Coast

Public, private, and academic partners are working to leverage regional defense assets for transformational economic development. Solidified through a Memorandum of Understanding, the regional coalition has begun to develop a Master Plan for the commercial space industry.

MOU   Overview   Phase 0   Phase 1


Global Connections: Export Opportunities

GO-Biz administers the California STEP program designed to offer financial assistance for export activities to eligible California small businesses. GO-Biz teams up with partners to provide aerospace and defense companies the opportunity to connect with international buyers, potential partners, and buying authorities.

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11.1K Aerospace Engineers, More Than Any Other State3

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3 NASA Research Centers4

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2 of the Top 3 Universities for Aerospace Engineering5

Popular Programs

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California Competes Tax Credit

The California Competes Tax Credit is an income tax credit available to businesses who want to relocate, stay, or grow in California. Our team provides no-cost consultations to see if your business qualifies.

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Advanced Transportation and Manufacturing Sales and Use Tax Exemption

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

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Research & Development Tax Credit 

A business may qualify for an income tax credit if it paid for or incurred qualified research expenses while conducting qualified research activity in California. Qualified research expenses include wages, supplies, and contract research costs.