Incentives

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Local Incentives

West Sacramento Opportunity Zone

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).

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. 

West Sacramento Opportunity Zones MAP

Please visit the IRS Opportunity Zone FAQ 

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.

Regional Sewer Connection/Impact Fee Incentives

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Sac Regional Sewer Economic Development Competitiveness Grant Program

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

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 be eligible to defer payment of customs duties and federal excise taxes until merchandise is transferred from the foreign trade zone.

      Recycling Market Development Zone

      The City is part of the Sacramento Regional Recycling Market Development Zone (RMDZ). Recycling-based manufacturers are eligible to apply for technical, marketing and financial assistance including low interest loans.


          Programs to Finance Impact and Connection Fees

          Bond programs finance impact, connection fees and energy efficiency improvements. 

          Statewide Community Infrastructure Program

          CSCDA offers the Statewide Community Infrastructure Program (“SCIP”). SCIP is a financing program that enables developers to pay most impact fees and finance public improvements through an acquisition agreement that qualify under the 1913/1915 Act (excluding school fees) via tax-exempt bond issuance proceeds. The SCIP program has assisted communities and developers throughout California to finance over $750 million in impact fees and public infrastructure since 2003.

          CMFA Bond Opportunities for Land Development (BOLD)

          The CMFA’s Bond Opportunities for Land Development (BOLD) Program has been designed to help both developers and local public agencies in California finance public infrastructure needed for new development using municipal bonds issued by the CMFA. By working directly with developers, the BOLD program facilitates financing for infrastructure and fee obligations of developers such as impact fees imposed under California law, and fees related to schools and mitigation agreements. The Program efficiently and effectively provides financing of infrastructure projects and development fees through the Mello-Roos Act, all on a cost-effective basis. Administration of the Program, bond offerings, and related CFD formation and ongoing administrative responsibilities are handled by the CMFA.

          Property Assessed Clean Energy (PACE)

          Yolo County's property assessed clean energy (PACE) programs allow property owners to finance energy efficiency, water efficiency anew renewable energy projects on existing and in some cases new residential and commercial structures through a voluntary special tax assessment on the property.  PACE programs provide financing for these types of improvements without requiring a down payment or payment of the full or partial up-front capital cost of the improvement.


              PG&E

              PG&E Electric Rate Incentive 

              PG&E’s Economic Development Rate (EDR) allows qualified commercial and industrial businesses 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 and EDR Rate Map.

              PG&E Industry-Based Rebates

              Rebates are available for biotech, hospitality, ag. and food processing, retail, industrial, and more.

              Improve energy efficiency and lower costs at your company. PG&E offers rebates and low or no-interest loan programs for business upgrades for HVAC, Refrigeration, Water Heating, Food Processing, and more. For more information, please view the website.

              California Energy Design Assistance (CEDA) Program

              The California Energy Design Assistance (CEDA) Program provides complimentary energy design assistance for new construction and major alterations for commercial, public, multifamily (4 stories and taller), industrial and agricultural projects.

              Program Options

              CEDA Mixed Fuel: provides a path for customers who want to have the option to use both gas and electricity.

              • Optimize gas and process heating systems to reduce carbon emissions.
              • Encourage facilities that can integrate with renewable generation, electric vehicle charging, and battery storage.

              CEDA All-Electric: gives customers the ability to choose a track with no gas service.

              • Higher cash incentives to promote electric design.
              • Encourage facilities that can integrate with renewable generation, electric vehicle charging, and battery storage.


              State Incentives

              GOBIZ INVESTMENT GUIDE 2023

               

              CalCompetes Tax Credits

              • $90 million in CalCompetes Tax Credits Available
              • Eligible businesses planning to create full-time jobs may apply  
              • 25% of funding each fiscal year reserved for small businesses

              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, 2030
              • Administered by California State Board of Equalization 

              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

              Employer Training Reimbursement

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

              Research and Development Credit

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