Palmdale Elevates Aerospace Incentives to $500,000 to Attract Defense Supply Chain Businesses

PALMDALE, CA – The City Council voted to expand incentives for aerospace and defense businesses during its Jan. 13 meeting, doubling the maximum award for new construction projects from $250,000 to $500,000 and introducing a $125,000 award for new leases as part of the enhanced Palmdale Aerospace Incentive Program.

The revamped initiative positions the City as the destination for companies supporting Air Force Plant 42 and the region’s major aerospace manufacturers, including Lockheed Martin, Northrop Grumman and Boeing. The program specifically targets businesses that provide critical products and services to support operations and manufacturing processes within the aerospace and defense supply chain.

“As America’s Aerospace Valley continues to grow, we need to ensure that the businesses supporting our major aerospace operations can thrive in Palmdale,” said Mayor Eric Ohlsen. “This enhanced incentive program demonstrates our commitment to strengthening the entire aerospace ecosystem, from the major manufacturers to the essential suppliers and support companies that keep this sector competitive. By making it more attractive for these companies to establish or expand operations here, we’re creating pathways to skilled jobs for our residents and building long-term economic vitality for our community.”

The program now offers two distinct tiers based on the project. New lease agreements qualify for up to $125,000 in a single-phase award. New construction projects can receive up to $500,000 through a two-phase structure that awards up to $250,000 per phase. Both options require businesses to commit to creating at least 50 new jobs and utilizing a minimum of 70,000 square feet of space.

“Palmdale’s aerospace legacy is built on infrastructure that supports innovation and manufacturing capacity,” said Mayor Pro Tem Austin Bishop. “These expanded incentives will help attract suppliers to invest in facilities here, reducing transportation costs and delivery times for companies at Plant 42 while bringing employment opportunities closer to where our residents live.”

The program builds on Palmdale’s existing advantages, such as robust local workforce development programs, a highly skilled labor pool, and the City’s strategic location in Southern California.

Businesses interested in taking advantage of the expanded program can learn more about the eligibility requirements and the City’s other incentive programs atwww.CityOfPalmdaleCA.gov/1383/Incentive-Programsor by contacting Economic and Community Development at 661/267-5125.