If you have questions about any of these programs or want to start an application please call our regional rep Stephen Suderman at 916-970-9965 or [email protected]

Job Creation & Investment Support Programs: 

• California Competes This program offers a corporate income tax credit or a grant for companies looking to locate, create jobs and have investments in California. It is a competitive application process and a projection looking forward to the amount of jobs and investment you plan to make in the next 5 consecutive years. The Grant funding is intended for businesses that are unable to take advantage of a non-refundable income tax credit.

See the CalCompetes Resource Page. It includes an FAQ, application guide and presentation that you can walk through to help fill out the online application.

• • Scheduled Application Periods
  • Application Guide
  • View past awardees and what they requested (tax credit)
  • View past awardees and what they requested (grant)

• Research and Development Tax Credit (R&D) This program reduces state income tax due to the Franchise Tax Board for qualified research expenses while conducting qualified research activity in California.

Sales & Use Tax Exemptions (for equipment purchases):

• Partial Sales & Use Tax Exemption This program provides a sales tax exemption of 3.9375% for basic manufacturing equipment. Eligibility is determined by the company’s North American Industry Classification (NAICS) Codes 311100 to 339999, inclusive, 541711, or 541712. Research and development is eligible for the exemption.

• • CDTFA Get it in writing program – to get advice on tax questions and equipment eligibility: https://www.cdtfa.ca.gov/formspubs/cdtfa8.pdf
  • NAICS Code search website:  https://www.census.gov/naics/
  • If you pay the full amount of sales tax reimbursement at the time of purchase, and later discover that you have met all of the qualifications, you may issue a partial exemption certificate to your retailer. The retailer may then file a claim for refund for the overpaid portion of sales tax on your behalf. If the transaction was subject to use tax, the purchaser may file a claim directly with the CDTFA. https://www.cdtfa.ca.gov/industry/manufacturing-exemptions.htm#Purchasers

• Full Sales & Use Tax Exclusion (CAEATFA) This program provides a full sale and use tax exclusion for advanced manufacturers and manufacturers of alternative source, recycled feedstock, and advanced transportation products, components or systems. Closed for this year but opening up at the beginning of next year.

• • See Alternative Source definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#alternative
  • See Advanced Transportation definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#transportation
  • See Advanced Manufacturing definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#manufacturing
  • See Recycled Feedstock definition for eligibility determinations: https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#recycled
  • Fee Calculator: https://www.treasurer.ca.gov/caeatfa/ste/fees.asp

 Employment (workforce training & hiring tax incentives)

• Employment Training Panel (ETP)This program provides match funding to employers to assist in upgrading the skills of their workers.

• • To learn more or start the application process you can sign up for an ETP Interactive Orientation.
• • If you are interested in an in person or telephone orientation, please contact the ETP Economic Development Unit or by telephone at (818)755-3634 in Southern California or (916)327-5258 in San Francisco Bay Area/Northern California.
  • You can also participate in ETP through a Multiple Employer Contract (MEC), simply contact any MEC serving your industry. You can see the MEC’s here on ETP’s website.
    
• New Employment Credit (NEC) This credit is an income tax credit for specific new hires (ie former veterans, formerly incarcerated individuals, unemployed members) in economically disadvantaged areas – designated geographical areas. The credit is based on 35% of qualified wages or wages between 150% and 350% of minimum wage.
• Homeless Hiring Tax Credit California’s governor signed Assembly Bill (AB) 150 establishing the Homeless Hiring Tax Credit (HHTC). The credit is available for taxable years beginning January 1, 2022 through December 31, 2026. Employers may receive $2,500 to $10,000 in tax credit per eligible employee based on hours worked in the taxable year. Employers may claim up to $30,000 of credit per taxable year.

Energy Commission Programs:

• Empower Innovation: California Energy Commission’s cleantech hub network. You can sign up on their website to be connected to funding opportunities, curated resources, and connections to people and organizations working in the cleantech space.
• Electric Program Investment Charge Program – EPIC: The California Energy Commission’s Electric Program Investment Charge (EPIC) program invests in scientific and technological research to accelerate the transformation of the electricity sector to meet the state’s energy and climate goals.
• CalSEED: CalSEED is one of several initiatives funded by the California Energy Commission EPIC program to advance energy innovation. CalSEED grants of up to $600,000 are awarded to early-stage clean energy entrepreneurs to accelerate California’s clean energy goals.
• • Next Application period: February 17th – March 5th, 2023
  • Application Manual
• Cost Share for Federal Clean Energy Funding Opportunities: The California Energy Commission provides cost share funding to applicants that apply for and receive one of the following:  An award under an eligible federal Funding Opportunity Announcement (FOA) and meet the requirements of this solicitation, or  Follow-on funding from the U.S. Department of Energy to continue research from a previously awarded federal grant
• CEC Subscription List: I would also recommend that you subscribe the CA Energy Commission’s funding alerts page.

Financing Programs:

• Small Business Loan Guarantee Program: The California Small Business Loan Guarantee Program (SBLGP) partners with Financial Development Corporations to provide loan guarantees for eligible small businesses that experience capital access barriers.

The maximum amount is $5 million and the current guarantee is up to 80%. Eligible businesses must have 750 employees or fewer. Loan proceeds must be used in California and may be used for start-up costs, working capital, business procurement, equipment and inventory purchases, contract financing, franchise fees, business expansion, lines of credit, as well as real estate construction, renovation or tenant improvements of an eligible place of business. The Small Business Finance Center (SBFC) partners with Financial Development Corporations (FDCs) to provide loan guarantees and direct loans for small businesses that experience capital access barriers. See approved lender list below to contact a lender.

• • Program website: https://www.ibank.ca.gov/small-business-finance-center/
  • Lender list: https://www.ibank.ca.gov/small-business/participating-lenders/
• California Capital Access Program (CalCap):  The California Capital Access Programs encourage banks and other financial institutions to make loans to small businesses.  The CalCAP programs incentivize participating financial institutions (PFIs) to make loans for a wide array of small business borrower (SBB) financing needs. With CalCAP portfolio support, a lender may be more comfortable underwriting small business loans.
• • Small Business Program Website: https://www.treasurer.ca.gov/cpcfa/calcap/sb/index.asp
  • Collateral Support Program Website: https://www.treasurer.ca.gov/cpcfa/calcap/collateral/index.asp
  • Heavy-Duty Vehicle Air Quality Loan Program: https://www.treasurer.ca.gov/cpcfa/calcap/arb/index.asp
  • ADA Financing Program: https://www.treasurer.ca.gov/cpcfa/calcap/ada/index.asp
  • Seismic Safety Financing Program: https://www.treasurer.ca.gov/cpcfa/calcap/seismic/summary.asp
  • Participating Financial Institutions (PFI) list: https://www.treasurer.ca.gov/cpcfa/calcap/lenders.asp
• Recycling Market Development Zone (RMDZ): This program provides attractive loans, technical assistance, and free product marketing to businesses that use materials from the waste stream to manufacture their products and are located in a zone.
• Industrial Development Bond (IDB) This program provides tax-exempt financing that is available to manufacturers for the acquisition of manufacturing facilities and equipment.
• California Pollution Control Financing Authority (CPCFA) : This program provides tax exempt bonds for pollution control and other environmental projects meeting commonly accepted standards for climate investments.  Eligible uses of the bond include: buildings and equipment, machinery and furnishings, land, cost of architects, engineers, attorneys and permits.

Incentives – Power / Utilities

• Utility Economic Development Rate Programs (EDR): This program gives special utility discounts for businesses in California that are considering to expand, locate or relocate with out of state considerations in competition with California. Small businesses also qualify.

• • Southern California Edison (SCE)
  • San Diego Gas & Electric (SDGE)
  • Pacific Gas & Electric (PG&E)
• Self-Generation Incentive Program (SGIP): This program provides businesses with rebates for installing energy storage technology at non-residential facilities. These storage technologies include battery storage systems that can function during a power outage.

Other Resources:

• Opportunity Zones: Here is also a link to our OPZONES webpage: https://opzones.ca.gov/. Here is our mapping tool to determine where the opportunity zones are in California.
• Incentive Navigation Tools:

• • You can also visit our Business Investment Guide to get a larger list of incentive programs that may interest you as well.
  • Please also take a look at our State Grants Portal for programs that are currently active and will become available in the future.