LOCAL AGENCY MILITARY BASE RECOVERY AREA (LAMBRA)

The LAMBRA program offers resident businesses substantial tax credits, expense deduction, net interest deduction, and carry over opportunities. This program is similar to Enterprise Zones with a value up to $31,544 per employee per year!

During the last seven years, over 187,000 California workers were idled due to four rounds of Base Closure and Realignment. The Local Agency Military Base Recovery Area (LAMBRA) program was developed to attract reinvestment and reemploy workers. A LAMBRA designation has tax incentives that are similar to Enterprise Zones and is binding for a period of eight years. The LAMBRA's boundaries are the closing base or a portion of it.

The designations allow communities to extend California tax incentives to companies located in a LAMBRA Zone. These credits include:

  • Tax FormsUp to 100% Net Operating Loss (NOL) carry-forward.
  • NOL may be carried forward 15 years.
  • Firms can earn $31,544 or more in state tax credits for each qualified employee hired up to $2 million per year with a few provisions.
  • Companies can earn sales tax credits on purchases of $20 million per year of qualified machinery and machinery parts.
  • Up front expensing of certain depreciable property, up to $40,000 annually. Unused tax credits can be applied to future tax years, stretching out the benefit of the initial investment.

The Castle LAMBRA expires May 31, 2012.