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1 Capital Investment Incentive Program (CIIP)
City Council
October 20, 2026
Community & Economic Development Department
RiversideCA.gov
2 Overview: • Introduce the Capital Investment Incentive Program (CIIP). • Request for City Council to adopt the CIIP resolution. • Outline how CIIP can support Riverside’s advanced manufacturing attraction strategies.
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3 What is a CIIP?
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.
RiversideCA.gov
4 Eligibility Requirements
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.
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5 Existing CIIPs
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 RiversideCA.gov
6 Why CIIP for Riverside?
Benefits: • Enhances competitiveness for attraction of large manufacturers. • Supports business attraction and retention across all Wards. • Promotes workforce opportunities through defined job creation commitments. • Aligns with City goals: innovation, job quality, and economic resilience. 5 6
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7 Resolution Actions
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.
RiversideCA.gov
8 Fiscal Impact • No immediate fiscal impact associated with adoption of the CIIP resolution. • Any future Community Services Agreement with a company would result in a partial property tax abatement, in exchange for manufacturing investments and job creation requirements. • Per Council approval of a CIIP resolution, staff will draft program guidelines and procedure to ensure future manufacturing investment and job creation commitments outweigh fiscal impacts.
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9 That the City Council:
1. Adopt the CIIP resolution.
2. Direct staff to submit required notifications to the Governor’s Office of Business and Economic Development (GO Biz) following Council adoption, as required under Government Code Section 51298(e).
RECOMMENDATIONS
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