FBI Hosts Financial Incentives Conference

Fashion Business, Inc. (FBI) presented “Financial Incentives for Garment Companies to Grow in Los Angeles” on Nov. 12 in the fashion theater of the New Mart to a crowd of about 125 attendees.

The conference featured Dov Charney, senior partner of American Apparel; councilman Nick Pacheco; Rocio Leon, manufacturing training manager of the California Manufacturing Technology Center; John Chen, assistant director of economic development for the Department of Water & Power; and Robert Biller, city and state enterprise zone manager for the Community Development Department (CDD).

“We still need to have more manufacturing in Los Angeles and make it a place where people can earn a decent living,” said Pacheco, who, with Charney, served as cokeynote speaker for the conference.

Charney spoke about his company and the programs Los Angeles presents to companies doing business here. “We pay living wages not because we want to be charitable, but because we’re building a sustainable company, taking advantage of new technology and new opportunities.”

The conference provided an overview of financial incentives available to small to mid-size apparel manufacturers, including hiring tax credits, sales and use tax credits, manufacturers’ investment credits and employer wage credits, as well as waivers of business taxes.

CDD’s Biller detailed the two ways businesses can qualify for financial incentives: by conducting business in either a state enterprise zone or a federal enterprise zone, or by having a majority of employees who reside in those zones.

“The concept behind the empowerment zones is to lower business costs and free up capital so that the business is in a better cash-flow position,” said Biller, who also pointed out that businesses in better cash positions hire more employees and make a higher contribution to the tax base.

Charney explained how American Apparel stands as a prime example, having taken advantage of many of the incentives.

“We took in $75,000 to train our workers,” said Charney.

The conference finished with questionand- answer focus groups on Workforce Training and Technical Assistance, led by Elaine Gaspard, regional manager of the Los Angeles County Economic Development Corp.; Loan Programs, led by Nilima Kapoor, growth program manager for the Valky Economic Development Center; and Tax Incentives, led by CPA James Michael Jacobs of Jacobs, Pine Consultants. —Darryl James