Fresno County provides a broad range of incentives, making it attractive and economical to locate your business here. Apart from favorable wage and labor rates, businesses can access the following incentives:
The Fresno County Regional Enterprise Zone (EZ)
The EZ Tax Credit was established by the State of California to provide businesses the opportunity to create additional jobs, access more resources, and increase overall profitability through tax savings. The tax credit can save employers up to $37,440 per qualified employee. Incredibly, fewer than 15% of qualified businesses know about, much less take advantage of, this tremendous incentive. The EZ tax credit can significantly add to your company’s bottom line, making it a smart way to grow your business!
The City of Fresno Enterprise Zone
Businesses in the zone - from large manufacturing companies to small neighborhood restaurants - can significantly reduce their state income taxes by taking advantage of special California Enterprise Zone tax benefits.
Located within the Fresno Enterprise Zone borders are affordable manufacturing and commercial sites, as well as unique retail locations. The zone is within immediate access of two freeways, two state highways, the Fresno Yosemite International Airport and the Downtown Chandler Airport. It is also in close proximity to a wide range of educational facilities, housing, and other amenities. These assets add up to an increasingly powerful ability to assist current businesses and attract new companies, jobs, and investments.
Businesses can realize substantial tax savings by locating and/or expanding in this zone, and by employing area residents. The investment of Federal tax dollars translates into new funds entering our community that will grow and expand our economic base.
The eight-year program began in January 2002 and will expire in December 2009. The positive impact to our local economy is expected to continue for decades to come.
The Federal Department of Housing and Human Services (HUD) awarded the Empowerment Zone designation. The City of Fresno’s Economic Development Department is in charge of its day-to-day operation.
The Historically Underutilized Business Zone (HUBZone) is administered by the U.S. Small Business Administration (SBA) and was designed to stimulate economic development and create jobs in urban and rural communities by providing Federal contracting preferences to small businesses. The HUBZone applies to qualified small businesses (by SBA standards) located within the zone’s boundaries with at least 35% of their employees residing in a HUBZone. The City of Fresno’s HUBZone is defined by qualified census tracts.
A U.S. Foreign-Trade Zone (FTZ or Zone) is a designated area which, for Customs purposes, is considered outside the U.S. Nearly any imported merchandise can be brought into a Zone for almost any kind of manipulation, duty-free. If you are not currently located within the FTZ, a sub-zone can be created virtually anywhere in Fresno County to include your company's facilities.
Work-Opportunity Tax Credit (WOTC)
Tax credit for $2,400 (and potentially $9,000) for hiring workers who fall under certain categories, such as residents of empowerment zones or renewal communities; food stamp recipients between 18 and 39 years old; disabled veterans and more.
Federal Research & Development Tax Credit
Federal tax credit equal to 20% of the amount by which qualified research expenditures for a taxable year exceeds its base amount for that year, or for basic research payments.
State Research & Development Tax Credit
The California R&D Credit reduces income or franchise tax. Businesses who paid or incurred qualified research expenses while conducting qualified research in California may receive 15 percent of the excess of current year research expenditures over a computed base amount (minimum of 50 percent of current year research expenses).
New Market Tax Credit
Companies who invest in projects that qualify as Community Development Agencies get 39% of the project’s cost returned in the form of tax savings spread out over 7 years.
Businesses in the Renewal Communities found in Orange Cove and Parlier can claim a $1,500 federal tax credit each year in which an employee who lives in the Empowerment Zone works at the company.
The reimbursement is equal to 50% of average wages for eligible employees during a training period of up to six months.
Industrial Development Bonds
For companies looking to raise $2,000,000+ to build or expand manufacturing facilities, industrial development bonds offer a way to raise money in the tax-exempt marketplace, thereby obtaining a lower interest rate.
Recovery Zone Bonds
Similar to Industrial Development Bonds, but not as limited in project scope, IDBs represent another way for private companies to access the tax-exempt market.
Rural City Revolving Loan Funds
The cities comprising the I-5 Corridor and the 5 Cities Economic Development Authority each have revolving loan funds which may be accessed by existing companies in the area or those looking to relocate to the area.
California Capital Access Program (CalCAP)
The California Capital Access Program (CalCAP) encourages banks and other financial institutions to make loans to small businesses that fall just outside of most banks' conventional underwriting standards.
CalCAP is a form of loan portfolio insurance which may provide up to 100% coverage on certain loan defaults. By participating in CalCAP, lenders have available to them a proven financing mechanism to meet the financing needs of California's small businesses.The California Capital Access Program (CalCAP) encourages banks and other financial institutions to make loans to small businesses that fall just outside of most banks' conventional underwriting standards.
Recycling Market Development Zone
Incentives include one-stop permitting assistance, waiver or reduction of development/permit fees, a database on land, buildings, markets, and feedstock, a micro revolving loan fund, and installment payment of fees. The RMDZ loan program can also fund a maximum of 75% of costs directly attributed to an eligible project up to a maximum of $2 million, whichever is less. This benefit is available to companies in Fresno County who recycle materials which would otherwise be sent to landfills.
Clean Energy Business Financing
2.75%-interest loans available to California businesses who reduce California energy use, increase renewable energy generation, and create and/or retain California jobs.
Want to Learn More About Incentives?
We offer workshops throughout the year to assist businesses avail of tax incentives.Sign-up today.
Looking for the Perfect Site in Fresno County?
Contact our Business Development team
559-476-2504Or send inquiries here.
Site Selection Brochure
Our brochure: Fresno County Attraction Toolkit is available in PDF Format