The City of Palmdale has taken a significant step to bolster its aerospace sector by expanding the Palmdale Aerospace Incentive Program. In a recent decision, the City Council voted to increase the maximum award for new construction projects from $250,000 to $500,000 and introduced a $125,000 award for new leases. This move aims to attract businesses that provide critical products and services to the aerospace and defense supply chain.
Mayor Eric Ohlsen emphasized the importance of this initiative, stating, “As America’s Aerospace Valley continues to grow, we need to ensure that the businesses supporting our major aerospace operations can thrive in Palmdale.” The program specifically targets companies supporting operations at Air Force Plant 42 and major manufacturers like Lockheed Martin, Northrop Grumman, and Boeing.
The enhanced program offers two tiers of incentives: new lease agreements qualify for up to $125,000, while new construction projects can receive up to $500,000 through a two-phase structure. Both options require businesses to commit to creating at least 50 new jobs and utilizing a minimum of 70,000 square feet of space.
Mayor Pro Tem Austin Bishop highlighted the broader impact, noting that these incentives will help attract suppliers to invest in facilities in Palmdale, reducing transportation costs and delivery times for companies at Plant 42 while bringing employment opportunities closer to residents.
Businesses interested in the expanded program can learn more about eligibility requirements and other incentive programs by visiting the City of Palmdale’s official website or contacting the Economic and Community Development department.