The City of San Diego offers business incentives that are aligned with City Council Policy 900-12 , giving companies an edge in the marketplace and helping them expand and prosper.
This flexible tax credit promotes job creation and business attraction, expansion and retention efforts in California. Companies submit online applications to obtain state tax credits. The program is administered by California Governor's Office of Business and Economic Development (GO-Biz).
The Partial Sales Tax Exemption affords businesses a 4.19 percent state sales tax exemption to reduce the tax on manufacturing and research & development (R&D) equipment purchases. The exemption is administered by the California Department of Fees and Tax Administration.
The State of California's New Employment Credit (NEC) allows San Diego businesses an opportunity to capture valuable tax credits intended to reduce their annual state income tax liability. The NEC allows qualifying companies to capture up to $56,000 in tax credits (per qualified employee) for hiring recently discharged military veterans, ex-offenders, long-term unemployed persons, and public assistance recipients.
Please click on the following link (New Employment Credit Estimator) if you would like to find out if your business may be eligible for state tax credits based on full-time employees hired after Jan. 1, 2014.
The City's Business Cooperation Program can provide sales and use tax rebates of up to $0.425/dollar of local tax allocated to the City of San Diego when a business implements new practices for sales, purchasing or tax accounting. The program is designed to reallocate local sales and use taxes. It does not cause an increase in the amount of sales and use taxes paid by participating businesses.
Fee Payment Incentive Program
The Fee Payment Incentive Program affords businesses an opportunity to recoup certain City of San Diego Development Services Department Fees (i.e. Impact fees, Review fees, Express Plan check service) paid by the business associated with submitting and securing required building permit entitlements. Based on the number of full-time jobs created, sales tax revenue generated, and/or capital investment, reimbursement amounts can be up to $10,000.
Requirements: The business must provide proof of City of San Diego Business Tax Certificate. Projects must be located in the City of San Diego and in the Promise Zone, Enterprise Zone, or Low- Medium Income census tract, click here to access the interactive map.
For additional information about incentives in Manufacturing and Logistics industries or Innovation and Technology industries, please contact Karina Danek at 619-533-5954 or firstname.lastname@example.org or the Economic Development Department at email@example.com.