9/2/2026
1 Capital Investment Incentive Program (CIIP)
•Introduce the Capital Investment Incentive Program (CIIP).•Request EDC recommendation for City Council adoption of a CIIPresolution.•Outline how CIIP can support Riverside’s advanced manufacturingattraction strategies.
Overview:
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2 State Program Overview:•Established by the State of California, under Government Code §51298 et seq. as a statewide business attraction tool.•Provides partial property tax abatement for up to 15 years for qualifying manufacturers.•Supports major capital investment and long-term job creation.
What is a CIIP?
State Law Requirements:•Manufacturers must invest at least $150M (original CIIP) or $25M–$150M under AB 2922.•Must fall within specified North American Industry Classification System (NAICS) manufacturing categories (e.g., aerospace, biotech, clean transportation).•Must submit a written request to the City requesting the CIIP.•Must enter into a Community Services Agreement (CSA) with required terms, including the proposed investment and job creation commitments.
Eligibility Requirements
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3 Adopted by Cities and Counties in California: •City of Palmdale, City of Long Beach, City of Marina•Los Angeles County, Monterey County, Riverside County•State will issue a new biennial compilation of CIIPs in October 2026 Existing CIIPs
Benefits:•Enhances competitiveness for attraction of large manufacturers.•Supports business attraction and retention across all Wards.•Promotes workforce opportunities through defined job creationcommitments.•Aligns with City goals: innovation, job quality, and economic resilience.
Why CIIP for Riverside?
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4 The Draft Resolution:•Formally establishes a CIIP as a State-approved business attraction incentive.•Directs staff to notify GO-Biz by June 30, 2027, and annually thereafter.•Does not approve any specific incentive but allows the City to provide future incentives via a Community Services Agreement with defined investments and job requirements.
Resolution Actions
•No immediate fiscal impact associated with adoption of the CIIP resolution.•Any future Community Services Agreement with a company wouldresult in a partial property tax abatement, in exchange formanufacturing investments and job creation requirements.•Per Council approval of a CIIP resolution, staff will draft programguidelines and procedure to ensure future manufacturing investmentand job creation commitments outweigh fiscal impacts.
Fiscal Impact:
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5 Staff Recommendation
We respectfully request that the Economic Development Committee recommend that City Council:•Adopt the CIIP resolution.•Make the CIIP program available for future qualified projects by directing staff to create program guidelines outlining eligibility.
Jessica Gonzales,Senior Project Manager(951) [email protected] Webb,Project Manager(951) [email protected] Contact Us
www.riversidebusiness.org@rivecondev