New Business Incentives now available!
Several business incentive programs are currently available to assist companies in the San Diego region. In part, these incentives afford eligible businesses a unique opportunity to capture valuable tax credits intended to leverage against their annual State income tax liability, as well as achieve other direct cost savings benefits.
Following is a summary of the these business incentives:
New Employment Credit
Allows qualifying companies to potentially capture up to $56,000 in tax credits (per qualified employee) for hiring individuals in traditionally difficult to employ categories; such as recently discharged veterans, ex-offenders, long-term unemployed, and public assistance recipients. Administered by the State of California Franchise Tax Board (FTB).
For more information regarding employer and employee eligibility requirements for the State’s New Employment tax credit program, please download the New Employment Credit (NEC) presentation; or visit California Franchise Tax Board - New Employment Credit FAQ's.
Please check the following resources (map and address street ranges) to determine if your business location is eligible for the New Employment Credit.
CA Competes Tax Credit Program
Flexible tax credit program intended to promote job creation, business attraction, retention and expansion efforts in California. Program goal is to incentivize companies planning to move to CA; or expand their existing business operations in the State. Companies statewide submit on-line applications for the opportunity to capture significant quarterly allocations of State tax credits. Administered by State of California Business and Economic Development Department (GoBIZ).
Download the CA Competes Tax Credit Program presentation for more information; or visit CA Competes Tax Credit Program.
- CA Competes Tax Credit Incentive Program (PDF) Effective January 1, 2014
Partial Sales Tax Exemption Program
Affords businesses a 4.19% State sales tax exemption for qualifying manufacturing equipment purchases statewide; resulting in an immediate, direct cost benefit for company at the time qualifying equipment is purchased. Administered by State of California Board of Equalization (BOE).
For more information regarding qualifying equipment and eligibility requirements for this partial sales tax exemption please download the Sales & Use Tax Exemption Incentive presentation or visit the State of California Board of Equalization - Manufacturing and Research & Development Exemption Program.