For Business
Incentives
State Incentives
Sales Tax Exemption
Since 2014 business have been allowed to exclude the first $200 million equipment purchases from the State of California’s share of sales tax (4.19%). This statewide sales tax exemption is based on manufacturing equipment or research and development equipment purchased by companies engaged in manufacturing or biotechnology research and development.
(Partial) Sales And Use Tax Exemption
A partial exemption of sales and use tax on certain manufacturing biotechnology and research and development equipment purchases. The partial exemption applies only to the state sales and use tax rate portion, currently at 4.1875 percent. The exemption does not apply to any local, city, county, or district tax. All manufacturers (NAICS Codes 3111 - 3399, inclusive), Research and Development in Biotechnology and Research and Development in the Physical, Engineering, and Life Sciences (NAICS Codes 541711 and 541712, respectively).
(Full) Sales and Use Tax Exclusion – Advanced Manufacturing & Transportation and Alternative Energy
A sales tax exclusion from both state and local sales tax collection on equipment purchases for qualifying businesses that conduct qualifying activities. Sales tax rates vary by jurisdiction (typically 7% to 9.25%).
New Employment Hiring Tax Credit (NEC)
The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, to a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee.
The hiring credit will be 35% of wages between 1.5 and 3.5 times the minimum wage for a period of five years. In five pilot areas designated by Go-Biz, the credit will be calculated on wages starting at $10 per hour.
California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available for businesses wanting to grow, remain or come to California. Criteria includes income data for the target area, the number of jobs created or retained, payroll data including minimum compensation, and tracking of jobs retained during enrollment. 25% of credits are reserved for small businesses. Performance measures as defined by the program are required for compliance.
Employment Training Panel
A cash reimbursement for training cost incurred by employers set by a pre-determined two-year performance based contract. Contracts vary based on number of employees enrolled, hours of training, training material and employee wages.
Industrial Development Bond (IDB)
Industrial Development Bond (IDB) financing is a competitive financing option available for the acquisition of manufacturing facilities and equipment providing a financing option for manufacturers to access private capital markets at tax-exempt rates.
Local Incentives
Downtown Modesto has a number of incentives including the Downtown Retail Business Initiative, the Business Incentive Program, the Development Incentive Program, the Physical Improvements Incentive Program, the Façade Improvement Program and the Pop-Up Shops Program.
Employment Recruitment
Customized Staffing Recruitment services at no cost
We will work with you to design a recruitment specifically for your company
Based on your specification, we can screen applicants to meet your minimum qualifications
City of Waterford Small Business Assistance Program
The City of Waterford offers grants of up to $5,000 to assist small businesses.
View the program flyer here →
City of Oakdale Business Incentive Program
The City of Oakdale offers grants of up to $1,000 to assist small businesses.
County On-the-Job Training
On-the-Job training, also known as OJT, is a hands-on method of teaching the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace. (Up to 75% wage reimbursement to employer)
Customized Training
A training institution delivers dedicated customized employee training as requested by the business. (Up to 50% wage reimbursement to employer)
Paid Internship
A temporary, structured workplace learning experience for participants who are enrolled in an educational program. Internships are designed to assist the participant in gaining technical work experience by applying classroom learning in the workplace. (100% of wages paid by Stanislaus County)
Large Industrial Investment Incentive Program
The Stanislaus County Large Industrial Incentive package facilitates business park development and increases workforce preparation skills. The Extra-ordinary Investment Incentive Program has been developed to assist the facilitation of job creation in Stanislaus County in the Industrial sector.
The Program applicant may receive a discount in the amount of Public Facilities Fees (PFF) paid based on a sliding scale, with the maximum discount reaching 50% in the Manufacturing sector and up to 60% in Warehouse and Distribution sectors. The amount of the discount is determined by a point system based on the project's anticipated positive impacts to the County. With every 5 points the applicant gains a 1% discount in the PFF. The minimum project size for participation in the Program is 150,000 sq. ft. for warehouse projects and 100,000 sq. ft. for manufacturing and distribution projects. Office space is not included in the square footage calculation.
Financing Opportunities
Small Business Loan Guarantee (SBLGP)
The California Small Business Loan Guarantee Program (SBLGP) assists businesses with the creation and retention of jobs while encouraging investment into low- to moderate-income communities. The SBLGP enables small businesses to not only obtain a loan it could not otherwise obtain but more importantly helps to establish a favorable credit history with a lender so the business may obtain loans in the future on its own without the assistance of the program.
Pollution Control Tax-Exempt Bond Financing Program
Private activity tax-exempt bond financing to California businesses for the acquisition, construction, or installation of qualified pollution control, waste disposal, waste recovery facilities, and the acquisition and installation of new equipment.
For more information about incentives for California businesses click here.