California offers a variety of incentives for new businesses as well as established businesses currently looking to expand. Highlighted below are details on a few of the major incentives offered, as well as summary information on additional State incentives.
Certain census tracts have been designated as Opportunity Zones. Investments made by individuals through special funds in these zones can defer or eliminate federal taxes on capital gains. The zones designated in Butte County generally fall in the Chico and Oroville area. Use the Interactive Map to determine if your business falls into one of the Opportunity Zones in Butte County.
California Competes Tax Credit
Income tax credits are available through California Competes, which is administered by the Governor's Office of Business and Economic Development (Go-Biz). No fee is required to apply and the credit is available statewide to all industries. Applications are submitted online.
Sales & Use Tax Exemption
This incentive offers partial exemption of sales and use tax on certain equipment purchases and leases. To be eligible you must be a qualified person/business purchasing qualified property used for qualified purposes. Eligible businesses must primarily be engaged in manufacturing, research and development in biotechnology, or research and development in the physical, engineering and life sciences. Qualified purchases include such items as basic manufacturing equipment, manufacturing research and development equipment, biotech equipment, and necessary tenant improvements (eg. clean rooms for biotech). The Board of Equalization administers these exemptions and they encourage potential participants to contact them with questions regarding the exemption, as it can be quite complex:
3321 Power Inn Road
Sacramento, CA 95826-3889
Toll Free Number: 800-400-7115
New Employment Credit
The New Employment Credit is an income tax credit 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 geographic area (DAG). Within Butte County, the designated geographic area includes the area within the former Oroville Enterprise Zone boundaries. An annual certification of employment is required for each qualified full-time employee hired in a previous taxable year. In order to be allowed a credit, the qualified taxpayer must have a net increase in the total number of full-time employees in California. This credit is administered by the State Franchise Tax Board. Obtain your credit reservation with the Franchise Tax Board to start the application process.
Recycling Market Development Zones (RMDZ) Revolving Loan Program
The RMDZ Loan Program provides low-interest loans for the purchase of equipment and other relevant business costs to businesses with manufacturing and processing facilities that produce recycled-content materials and products. The goal is to divert solid waste materials from California landfills. Up to 75% of costs directly attributed to an eligible project may be funded through the program with a maximum amount of $2,000,000. The program is administered by the Department of Resources Recycling and recovery (CalRecycle). The are 2 Recycling Market Development Zones located in Butte County:
- Chico/Northern Butte County
Linda Herman, Parks and Natural Resources Manager
City of Chico
Email Linda Herman
- City of Oroville
Rick Farley, Department of Business Assistance and Housing Development
City of Oroville
Email Rick Farley
Employment Training Panel
The Employment Training Panel (ETP) supports job creation and retention through workforce development. ETP provides financial assistance through reimbursements to California businesses in support of customized worker training. ETP funds three types of training program: Retaining, New Hire, and Special Employment Training which includes a small business program. Eligible employers are ones that are subject to the Employment Training Tax.
California Film & Television Tax Credit Program 2.0
Over $100 million in available tax credits for feature films, independent films, TV series, etc.
Electric Program Investment Charge (EPIC)
EPIC provides funding for applied research and development, technology demonstration and deployment, and market facilitation for clean energy technologies and approaches.
Alternative & Renewable Fuel & Vehicle Technology Program
The Clean Transportation Program provides grants towards innovative transportation and fuel technologies that help California meet its energy, clean air, and climate change goals.
Hybrid & Zero-Emission Truck & Bus Voucher Incentive Project (HVIP)
HVIP is a voucher program to help speed up the early market introduction of clean, low-carbon hybrid and electric trucks and buses.
Providing Loan Assistance for California Equipment (PLACE) Program
The California Air Resources Board offers two loan programs for the following areas: On-Road Heavy-Duty Vehicles and Goods Movement Emissions Reductions.
California Pollution Control Financing Authority (CPCFA)
CPCFA facilitates low cost financing to qualified waste and recycling projects, helps participating financial institutions extend credit to small businesses through microloans and larger loans for start-up, expansion and working capital through the California Capital Asset Program, and assists with the cleanup of contaminated sites through the CALReUse Program.
Industrial Development Bond Financing Program
Provides manufacturing and processing companies low-cost, low-interest financing for capital expenditures.
Nor-Cal Financial Development Corporation (FDC)
Nor-Cal FDC provides a wide range of innovative programs and services for business and economic development.
Innovation Hub Program
Improves the State's national and global competitiveness by stimulating partnerships, economic development, and job creation around specific research clusters through state-designated iHubs.
California Centers for International Trade Development
Invests in California's economic growth and global competitiveness through industry-specific education, training and services that contribute to a highly skilled and productive workforce.
Visit the California Governor's Office of Business and Economic Development (GO-Biz) website to learn more.