Number 1: California
The following is a list of special incentives enacted by the California legislature and adopted by individual business communities:

• Governor's Council on Biotechnology: Created by Governor Pete Wilson, it advises him on the factors necessary to promote the biotechnology industry in California. It consists of 16 members that are CEO's of California biotechnology companies and it meets quarterly.
  
  
• Team California: A group within the California Trade and Commerce Agency that works to keep businesses in the state.
  
  
• State Interagency Task Force on Biotechnology: A committee chaired by the Secretary of Trade and Commerce designed to coordinate activities and streamline the regulatory process for biotechnology development.
  
  
• "Special buildings," such as clean rooms, are eligible for a 6% credit against the franchise or income tax. Unused credits can be carried forward for 8 years.
  
  
• New standards set for valuing biotechnology equipment that allows more rapid depreciation.
  
  
• 6% franchise or income tax credit for purchase or lease of depreciable equipment.
  
  
• During first 3 years of operation, the company has the option of claiming (a) a 5% sales tax exemption on purchased or leased manufacturing property, or (b) a sales tax refund equal to the MIC the company could have claimed for the year.
  
  
• The highest R&D tax credit of 11% for in-house research, and 24% for research payments to outside organizations like universities.
  
  
• For new businesses, net operating loss carryforwards for up to 8 years during their first 3 years of business.
  
  
• An equity investment pool created with state teachers' and public employees' retirement systems.
  
  
• Reimbursement or financial assistance for technical job training.
  
  
• 8 centers of excellence/incubators for biotechnology that facilitate R&D, instrumentation resources, faculty development, technology transfer, public policy, and communications.
  
  
• Provides infrastructure assistance, including roads and other improvements for biotechnology buildings.
  
  
• Pacific Gas and Electric offers biotechnology companies in targeted industries reduced rates. Biotechnology currently has the lowest rate in the state.
  
  
• Financial assistance offered to companies located within the state's 36 enterprise zones.
  
  

Local Programs

San Diego: Team San Diego works to keep biotechnology industries within the city and assists companies with permits. In addition, there is a biotech ombudsman in the city's department of economic development.

• Vacaville and Solano County: Offers an abatement of property taxes for new biotechnology construction. Also, provides construction fee waivers and subsidies on land use tax until facilities are operational.
  
  
• Los Angeles: Offers special incentives to companies who locate within part of the city's revitalization zone.
  
  

Business Facilities Magazine (Oct. 1999) ranked states with thriving biotechnology industries. The rankings were based on the following factors:

1. The total biotechnology employment in 1999.
2. The numeric change in the number of jobs added between 1990-1997.
3. The total biotechnology establishments in 1997.
4. The numeric change in the number of biotechnology establishments from 1990-1997.