SAN LEANDRO — State tax credits are expected to fuel hundreds of new East Bay jobs in cutting-edge fusion energy, after Fuse Energy Technologies agreed to hire new employees and invest in San Leandro expansion after receiving a $10 million tax credit.

The announcements arrive at a time when California and the Bay Area are both locked in a hiring tailspin marked by hefty employment losses — California has lost 54,800 jobs this year.

According to state officials, the energy company and a boots and sportswear maker, Ariat International, have landed separate credits to encourage the companies to expand in California rather than another state.

Both companies have a headquarters in San Leandro and each have stated they intend to leverage the tax credits for growth in the East Bay.

The $10 million tax credit Fuse Energy Technologies received will help trigger $152 million in overall investments. While the $3 million that Ariat International received will lead to a $19 million investment.

Without the award, the fusion technology company said it would have undertaken its work in another state. The company also said it would have been forced to slash some or all of its jobs in California and move employees elsewhere.

“Fuse Energy Technologies agrees to hire full-time employees and invest in a facility, land, research and development equipment, and manufacturing equipment as part of its expansion in San Leandro and the greater East Bay,” Gov. Gavin Newsom’s office stated.

The tax credit would enable Fuse Energy to add 266 workers in California as a result of the tax credit.

“This credit allows Fuse to continue expanding job creation and research and development while scaling commercial operations in our 42,000-square-foot San Leandro facility,” Fuse Technologies stated in comments the company’s representative emailed to this news organization.

Fuse Energy Technologies has developed a power fusion device called Titan that is the primary launching pad for its efforts.

“Since 2019, we’ve built three functioning and record-breaking pulsed power fusion machines with dual applications,” Fuse Energy Technologies has stated. The two primary applications, the company added, are “commercial power generation and supporting the U.S. and allies’ national security.”

The company’s Titans are being built and tested in North America. A Titan device was fired in 2023 in the Quebec region of Canada.

Because of the tax credits, Fuse Energy Technologies plans to build a production center in San Leandro that the company calls a “terrafactory.”

Ariat International said it also would have had to expand to another state without the state tax credit. Now, it will not only stay but also add workers.

“Ariat International agrees to hire full-time employees and invest in office space, computer equipment, furniture and fixtures, and tenant improvements as part of its expansion in San Leandro,” the governor’s office stated.

The sportswear and boot maker said it would hire well over 100 workers over the next five years.

“This substantial project will result in a total investment of $19 million and the addition of 128 new full-time employees for corporate headquarters and other non-retail positions,” Ariat stated in comments the company sent to this news organization.

California has recently granted other tax credits to companies in the state in order to retain workers.

In Los Angeles County, Element Resources is investing $1.85 billion in a hydrogen fuel manufacturing facility in Lancaster; and Legendary Foods will expand food manufacturing in Bell and Santa Monica, with over $70 million in investment.

Marine Terminals Corporation will invest $8 million to expand port operations in Port Hueneme, supporting logistics and supply chain infrastructure; Cloacina will manufacture wastewater treatment equipment in Arroyo Grande, with a $3.9 million investment.

In Davis, Rural Power Systems will scale water pump manufacturing with an investment of $9.15 million.

“California is where innovation meets opportunity,” Newsom said. “We’re building a stronger, bottom-up economy.”