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Subsidy Tracker Individual Entry

Company: Northrop Grumman
Parent Company: Northrop Grumman
Subsidy Source: state
Location: California
City: Palmdale
County: Los Angeles
Project Description: stealth bomber production
Year: 2014
Major Industry of Parent: aerospace and military contracting
Specific Industry of Parent: aerospace & military contracting
Subsidy Value: $420,000,000
Subsidy Value in 2023 Dollars: $542,726,488
Program Name: California Competes
Awarding Agency: Governor's Office of Business and Economic Development
Type of Subsidy: 
Number of Jobs or Training Slots: 1,500
Source of Data: The value of the subsidy package and the job data were taken from "Brown extends tax credit to Northrop Grumman," Associated Press State & Local, August 15, 2014; available online at: (click here). SB 718 text is available at (click here) by searching SB 718 and session year 2013-2014.
Notes: A month after passing a controversial tax credit limited to Lockheed Martin (see 2014 $420 million megadeal for the company in California), the state extended the subsidy program to Northrop Grumman. The subsidy, which includes a tax credit equal to 17.5 percent of wages paid to the company's workers, is estimated to be worth $420 million over 15 years. The value of the subsidy reported in the media is based on the SB 718 rules that cap the value of the tax credit at $25 million in years 1 to 5, $28 million in years 6 to 10, and $31 million in years 11 to 15. The subsidy is contingent on the company wining an Air Force contract. Overlaps with main Subsidy Tracker data: none.
Source Notes: If an online information source is not working, check the Tracker inventory page for an updated link.