Aerospace Incentive Program

The aerospace and defense industries have a profound impact on the local economy. These sectors provide highly skilled jobs and significantly contribute to regional and local development. The City continually seeks ways to support these innovative industries and attract businesses that are eager to expand their presence within the Palmdale market. Notably, many businesses in the Los Angeles basin face limitations in their opportunities to grow, making Palmdale an attractive alternative. Beyond providing essential support services to Air Force Plant 42, attracting new aerospace related businesses to Palmdale will bolster the local community by providing well-compensated, skilled employment opportunities closer to home.  

The Palmdale Aerospace Incentive Program (PAIP) aims to accelerate the attraction of new businesses and foster the growth of the local aerospace ecosystem. The goals of the PAIP are to:

  • Attract aerospace and defense supportive businesses that provide products and services to support the operations and manufacturing processes of aerospace and defense companies. 
  • Incentivize job creation and capital investment in the city.
  • Provide larger incentives for projects with more jobs and capital investment in Palmdale.

Eligibility Requirement:

  • A minimum of 50 new primary jobs must be created. 
  • A minimum of 70,000 square feet of new construction or new lease space will be utilized.
  • End users of the company’s product must be in the aerospace or defense industry or play a crucial role in the supply chain of the aerospace and defense sectors, helping them produce advanced technologies and systems for military and civilian purposes. They must provide products or services to support the operations and manufacturing process of aerospace and defense companies as outlined in the qualifying companies’ section of this program.  
  • Businesses annual revenue must be $47 million or less as designated by the North American Industry Classification System (NAICS) utilized by the US Small Business Administration to qualify as a small business for businesses involved in the manufacturing of military and aerospace equipment or military weapons.
  • A minimum of three consecutive years of first-class business operation in a field of business as set forth in the qualifying companies section outlined in this program is required.
  • If the building to be occupied by the qualifying company is owned by another party, a lease agreement with a minimum 5-year commitment is necessary.

Incentive Structure:

  • Total Incentive = (Total Square Feet x .75 Incentive Rate per SF) + (Total Jobs Created x 1,300 Incentive Rate per Job)
  • The maximum incentive capped at $250,000 per project or until funds are exhausted.

Please see program guidelines and application for complete details on this program.

For additional information and questions: Contact the Economic Development Division at EconDev@cityofpalmdale.org or 661/267-5125