Tax Structure & Business Incentives
Greater Sacramento and the State of California have a number of grants and incentives to help attract and grow businesses to the Capital Region. For details on any of these programs, or for additional help, get in touch with us any time.
Local Agency Military Base Recover Areas (LAMBRAs)
Businesses located in a fully designated LAMBRA are eligible for similar incentives as Enterprise Zones with enhanced hiring tax credits and sales tax credits on purchases of qualified equipment. Designated LAMBRAs in the Sacramento Region include Mather Park and McClellan Park.
Research and Development Tax Credits
The research and development tax credit allows companies to receive a 15 percent credit against their bank and corporation tax liability for qualified in-house research expenses, and a 24 percent credit for basic research payments to outside organizations.
Foreign Trade Zones (FTZs)
Merchandise exported from or imported into an FTZ is excluded from customs duty and excise taxes until the time of transfer from the zone. The Port of West Sacramento is designated as an FTZ with several subzones and serves the Customs and Border Protection port of entry.
New Markets Tax Credit (NMTC)
The New Markets Tax Credit (NMTC) Program offers credits against federal income taxes for qualified equity investments in designated Community Development Entities (CDEs).
Industrial Development Bonds (IDBs)
Businesses investing in the acquisition, construction, rehabilitation, and equipping of manufacturing and processing facilities can receive funds from tax-exempt IDBs issued by a government entity.
California Alternative Energy & Advanced Transportation Financing Authority (CAEATFA)
Advanced transportation, renewable energy and clean technology businesses in California may be eligible for Sales & Use Tax Exemptions or different methods of financing through CAEATFA.
Pollution Control Financing
Businesses investing in the acquisition, installation, or construction of qualified pollution control, waste disposal, or waste recovery facilities and equipment can receive funds through tax-exempt bond financing programs.
Elective Single Sales Factor
California companies have the option of using a triple apportionment corporate income tax structure, or single sales factor method in determining their tax liability.
Recycling Market Development Zones (RMDZs)
Businesses located in a designated RMDZ that manufacture recycled raw materials, produce new recycled products, reduce waste from the manufacture of a product, or divert waste from landfills are eligible for low interest rate loans. RMDZs in Greater Sacramento include Sacramento County, Placer County, and the West Sacramento Enterprise Zone.
California Employment Training Panel (ETP)
ETP provides training dollars to qualified businesses to upgrade or re-skill new and existing employees expanding or relocating in the state.
California Employment Development Department (EDD)
Employers can enter job listings, browse resumes and find qualified workers through EDD’s CalJobs system and participate in work sharing programs that prorate unemployment insurance benefits to workers whose hours and wages are reduced. EDD also provides training subsidies and layoff transition assistance in partnership with One-Stop Career Centers.
Workforce Investment Boards (WIBs)
Businesses can utilize the WIB-operated One-Stop Career Centers and business services for job posting and recruitment assistance, resources on operating a business and workplace laws, customized training programs, access to labor market data, downsizing/ lay-off assistance, and information on various financial incentives. Many WIBs also provide special incentives for hiring youth (ages 16 to 21) such as tax credits, screening, and basic training.
Sacramento Employment and Training Agency/Sacramento Works, Inc. (Sacramento County)
Golden Sierra Job Training Agency (El Dorado and Placer Counties)
North Central Counties Consortium (Sutter and Yuba Counties)
Yolo Works (Yolo County)
Sacramento Training and Response Team (START)
Newly established and expanding businesses can work with START to facilitate employment services including recruiting and screening, testing and interview facilities, distribution of job postings, information on financial incentives, and access to labor market information.
California Department of Industrial Relations (DIR)
Employers can access trained and experienced workers in a specific set of occupations through the DIR Division of Apprenticeship Standards.
Community College Economic and Workforce Development
Employers can work with their local community college through their economic and workforce development programs to access training and consulting services such as on-site customized training, employee skills assessments, college courses, performance evaluations, and program management assistance.
Los Rios Community College District
Yuba Community College District
California Department of Education (CDE)
Employers can access workers with basic technical and occupational knowledge through the CDE’s Career Technical Education programs for high school students and adults that provide fundamental job competencies training, the background for advanced education and training, and opportunities to upgrade existing skills in a number of specific career fields.
Employers can utilize the CareerGPS web site to access information about regional education and training programs for specific occupations and analyze local labor market data and forecasts.
UC Davis Extension
Employers can access resources through the UC Davis Extension to assist with educational needs assessment, instructional design, educational delivery (in person and online), custom training, facilitation, and program evaluation.
Sacramento State College of Continuing Education
Employers can access courses, workshops, customized training, conference services, and skills screening to help identify and manage training and development needs through Sacramento State’s College of Continuing Education.
State Incentive: Manufacturers Tax Exemption
California Small Business Development Centers (SBDCs)
Existing small businesses and new entrepreneurs can receive no-cost business consulting, management training, and technical assistance through the network of Northeastern California Small Business Development Centers. Service centers in the Sacramento Region are housed at the Los Rios Community College District, Sierra College, and the Yuba Community College District.
Tools for Business Success
Small businesses and entrepreneurs can access the Tools for Business Success local web sites for resources, templates, contacts, and tutorial videos focusing on starting and managing a small business.
Small Business Loan Guarantee Program
Small businesses operating in the state are eligible to acquire customized loans and establish favorable credit history through the financial development corporations associated with the Small Business Loan Guarantee Program.
Sacramento State Center for Small Business (CSB)
Small businesses and non-profits can request free technical management assistance from the Sacramento State CSB in areas such as marketing/sales, accounting, financial management, human resource management, information systems, production and operating systems management, and business plans.
UC Davis InnovationAccess
Businesses can tap into business development and technology transfer services that connect university research to the marketplace through UC Davis’s InnovationAccess program.
Business Environmental Resource Center (BERC)
Businesses can receive assistance in understanding and complying with federal, state, and local environmental regulations through BERC’s compliance consultation, regulatory agency liaison, and information resource services.
Electric Utility Rebates and Incentives
Business customers investing in facility equipment, new construction, and energy efficiency measures are eligible for a variety of loans, technical assistance programs, and rebates through regional electric utility providers.
SMUD offers businesses a variety of options to assist in reducing electricity usage. SMUD offers a loan of up to $10,000 for equipment such as lighting, heating and air-conditioning systems, refrigeration systems, and process equipment. SMUD’s Retrocommissioning Program sends engineers to businesses to provide a screening of a building for free and offers incentives for any improvements made that reduce electricity usage. In addition, rebates are offered for energy efficient air conditioning, refrigeration, equipment, food service, lighting and controls, motors and process improvement equipment, and network PC power management software.
Pacific Gas & Electric (PG&E)
PG&E has an array of incentives for businesses to reduce their electricity usage. PG&E’s Non-Residential Retrofit (NRR) program provides incentives to businesses for interior and exterior lighting retrofits, chiller replacements, variable-speed drive installations, reflective window film installations, and boiler replacements. The New Efficiency Options (NEO) program offers consultation with a professional regarding how to upgrade the lighting in a building for free as well as incentives for installing more energy efficient lighting. The Self Generation Incentive Program (SGIP) offers incentives to businesses that install wind or fuel cell self-generation equipment. Also, PG&E’s California Solar Initiative gives rebates for solar.
Roseville Electric offers rebates for chillers, HVAC systems, lighting, and solar. In addition, customized rebates, new construction incentives, and free trees are provided.