Incentives

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Local Incentives  cows logo official with golden tower bridge

 

  • Southport Business Park Development Incentive Program

 Businesses or developers interested in constructing new buildings are eligible for reduced permit fees within West Sacramento's Southport Business Park. Southport Business Park offers shovel-ready parcels from 1-40 acres, zoned for business offices and industrial uses. 

  • City's Regional Sewer Credits

Sewer credits can be assigned to restaurants, public food-serving businesses and new developments in the riverfront Bridge District,  Washington District, the West Capitol Avenue Central Business District, and the Pioneer Bluff. Please see the program guidelines and contact Economic Development to apply.

  • Regional Sewer Connection/Impact Fee Incentives

Regional Sewer Connection/Impact Fee Incentives

Sac Regional Sewer Economic Development Competitiveness Grant Program

View the Regional Economic Development Competitiveness Program flyer

Businesses can receive a 15 – 50% reduction of their connection fee for creating new full-time jobs.  For more information or to apply, please visit the Confluence Regional Partnership Program website.

1_22_19_Final Economic Program Flyer

  • PG&E Electric Rate Incentive 

PG&E’s Economic Development Rate (EDR) launched on October 15, 2018 and is approved until 2020.

- Qualified commercial and industrial businesses are eligible to receive a 12% reduction in the published electric rate.

- Small businesses that have electric demands of less than 150 kW can qualify now under the new small business program

For more information, please view the fact sheet. To apply, contact Economic Development.

  • Port of West Sacramento Foreign Trade Zone #143

 West Sacramento is part of a General Purpose Foreign Trade Zone (FTZ) associated with the Port of West Sacramento. Companies in the FTZ may admit foreign and domestic merchandise into the zone for storage, exhibition, assembly, manufacture and processing while deferring payment of customs duties and federal excise taxes until merchandise is transferred from the foreign trade zone. Call (916) 617-4535 for more information about the FTZ.

 

  • Recycling Market Development Zone
    The City is part of the Sacramento Regional Recycling Market Development Zone (RMDZ). By providing incentives to businesses that use secondary material from the waste stream as feedstock, recycling-based manufacturers are eligible to apply for technical, marketing and financial assistance including low interest loans. Call us at (916) 617-4535 for more information about the RMDZ. 

State Incentives  california-state-silhouette-1

Opportunity Zones

The federal Opportunity Zones provide preferential tax treatment for capital gains investments in economically distressed areas. Investors may defer or eliminate taxes on capital gain investments made in designated Opportunity Zones in qualified opportunity funds (QOF’s). California opportunity zones include areas in Sacramento, San Francisco/Oakland/Berkley, the South Bay, and Los Angeles.

West Sacramento’s riverfront including the Bridge District (TBD), Washington, Pioneer Bluff and Stone Lock have been designated as well as industrial and commercial areas between West Capitol Avenue on the north, the Sacramento River on the east and the Deep-Water Ship Channel on the south. View all of the West Sacramento Opportunity Zones here.

Businesses and partnerships may self-certify as a qualified opportunity fund (QOF) to be eligible for tax deferral on gains until the earlier of, the date that the investment in a QOF is sold or exchanged, or December 31, 2026. 

Please visit the IRS Opportunity Zone FAQ: https://www.irs.gov/newsroom/opportunity-zones-frequently-asked-questions and call Economic Development at (916) 617-4535. 


Sales Tax Exemption for Manufacturing/R&D Equipment

  • Exemption of 4.19% sales or use tax for equipment
  • For equipment placed in service July 1, 2014 through June 30, 2022
  • Administered by California State Board of Equalization 

http://www.boe.ca.gov/sutax/manufacturing_exemptions.htm#page=Overview

Employment Credit

  • A 35% credit for every $1 of wages paid above $13.50 per hour for up to 5 years
  • Eligible employees include long-term unemployed, veterans, recipients of assistance and federal Earned Income Tax Credit (EITC), and ex-offenders

https://www.ftb.ca.gov/online/New_Employment_Credit_Reservation/FAQs.shtml#CC1

California Competes Tax Credit

  • Competitive, negotiated state credits based on new investment, new jobs, wages/compensation, economic impact and other factors
  • Administered by Governor’s Office of Business & Economic Development
  • 25% of funding each fiscal year reserved for small businesses

http://business.ca.gov/Programs/CaliforniaCompetes.aspx

California Business Portal for Assistance and Incentives

http://businessportal.ca.gov/Business-Assistance/Relocate-Expand-Your-Business

Employer Training Reimbursement

  • Direct reimbursement to Employer for on-the-job training costs
  • Up to a maximum of 200 hours per employee

www.etp.ca.gov

Research and Development Credit

  • 15% tax credits available for businesses investing in research and development.

https://www.ftb.ca.gov/businesses/credits/rd/


Please contact Economic Development Staff for confidential business assistance: (916) 617-4535.