SAN MARCOS — Piercan USA, Inc. has secured a $1.5 million California Competes Tax Credit (CCTC) this summer with the help of San Marcos’ economic development division. The income tax credit is set up to help businesses that want to grow and stay in California.
Piercan, an international company headquartered in France since 1948, is a worldwide leader in manufacturing niche polymer products, including specialty gloves used by NASA, pharmaceutical companies, national laboratories and the military.
The company began operating in the U.S. in 1995 in Vista before expanding to San Marcos, where it currently employs more than 60 full-time workers.
This tax credit will essentially give Piercan $1.5 million over the next 5 years, and it’s up to Piercan to set and meet certain hiring goals and capital investment goals each year in order to receive the full amount.
With this assistance, Piercan plans to expand its San Marcos operations and hire 62 new employees and will invest more than $7.5 million in wages, equipment and improvements within the next five years.
Julio Cedillo, Piercan’s general manager, told The Coast News that they contacted the City of San Marcos for help in understanding and applying for the program.
“We’ve been growing at a very fast pace and we’re going to continue at the same pace or even faster, which means we’ll be investing in potentially more space, more employees, more equipment and bringing more talent into the organization,” Cedillo said. “We can do this knowing that the city and the state understand that investing under the current conditions is difficult and investing in the state of California, where the cost of living is higher, requires some support.”
Tess Sangster, the city’s economic development director, explained that many businesses who qualify for this assistance aren’t even aware that this tax credit even exists.
“This is a great program that we want our businesses to know about,” Sangster said. “We know what a struggle it can be to do business in California, just from cost of real estate to cost of labor and high state taxes, so if we can do anything to help businesses cut costs, we try to do that.”
So far, the city has helped six San Marcos companies secure nearly $3 million in tax credits since 2017, allowing local businesses to expand and create new jobs.
“We’re trying to be a good corporate citizen and also give it back to the City of San Marcos,” Cedillo said. “A keyword in all of this is partnership… it’s about partnering with the city and the state. It’s not just about profit, it’s about creating a difference in the community and in our Piercan family.”