Qualified purchases made under construction contracts for tenant or infrastructure improvements are also eligible for the same partial sales tax exemption of 3.9375%.

For example, qualified purchases include special purpose buildings and foundations used as an integral part of the manufacturing, processing, refining, fabricating, or recycling process, or that constitute a research or storage facility used during those processes, and qualified materials and fixtures.

When doing tenant or infrastructure improvements, Construction Contractors will use BOE FORM 230-MC

California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California.

This tax credit is a negotiated credit, meaning the State, economic developers, and private sector businesses will submit an application that assesses the costs and benefits of each business expansion. There will be an estimated $200 million of tax credits available per year to assist in creating and maintaining jobs in California. The SDNEDC staff can help you submit the online application.

To learn more about the Cal Competes program, the timelines for the application cycle, and how to maximize your company’s chances of winning a grant click here. Please note that SDNEDC fully expects the program to continue into 2021. However, the new timelines for the program have yet to be announced pending the adoption of the state’s 2021-2022 budget.

Each year, more than 12 billion dollars in Research & Development Tax Credits are funneled back to US businesses at the federal level, and the tax credits are also available in California. Companies across numerous industries can qualify for the R&D incentive as long as the companies have engaged in activities that result in a new/ improved product (quality, reliability, performance, feature sets, etc.), or in a new/improved process.

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The CAEATFA is providing a sales and use tax exclusion (full rate, including local and district taxes) on qualifying property that is used in the design, manufacture, production, or assembly of “advanced transportation technologies or alternative energy source products, components, or systems,” or “clean technology”.

The tax exemption takes place at the time of the qualified equipment purchase. Before one is able to make tax exempt purchases of clean-tech qualifying equipment, they must get their application approved by the CAEATFA.

The CAEATFA is providing a sales and use tax exclusion (full rate, including local and district taxes) on qualifying property that is used in the design, manufacture, production, or assembly of “advanced transportation technologies or alternative energy source products, components, or systems,” or “clean technology”.

The tax exemption takes place at the time of the qualified equipment purchase. Before one is able to make tax exempt purchases of clean-tech qualifying equipment, they must get their application approved by the CAEATFA.

This program replaced the CA Enterprise Zone Tax Credit. It is not as robust as the Enterprise Zone program but is worth considering. Eligible businesses could generate up to $112,000 in tax credits per year from this program by hiring 10 new qualified employees.

Serving qualified sites within North County, this extension of the U.S. Foreign-Trade Zone (FTZ) program offers international traders, importers and exporters outstanding opportunities to take advantage of special customs privileges.

These incentives can lower barriers to trade, improve cash flow and enhance your company’s profits while giving you a competitive edge in the global marketplace.

The Recycling Market Development Zone (RMDZ) is a California state program aimed to simultaneously reduce landfill waste and encourage manufacturing.

North County is one of several designated RMDZs in the state of California, and as a result, North County businesses that can demonstrate that they are recycling paper, plastic, glass and/or organic material are eligible for low-interest loans and technical assistance.

The America’s Job Center of California (AJCC), San Diego, works with local with local businesses offering a variety of services from pre-screening candidates for open positions, to offering interview facilities and support services for job seekers. 

All services at the AJCC are offered to businesses and job seekers FREE of charge, and tax credits and wage subsidies may be available for employees hired through AJCC. Participation in these workforce development programs can mean a significant return to your business, and the SDNEDC is happy to introduce local companies to the center.

WOTC is a federal tax credit for companies who hire new employees from certain target groups who have consistently faced significant barriers to employment. 

The maximum tax credit ranges from $1,200 to $9,600, depending on the employee hired. The Veteran Opportunity to Work (VOW) to Hire Heroes Act of 2011 extended and expanded the WOTC Qualified Veterans target group. 

provides a tax credit to taxpayers and businesses who contribute to Cal Grants, the State of California’s largest source of educational financial aid. The credit can be used to offset or reduce taxes. Cal Grants provide aid to in need California undergraduates, vocational training students and those in teacher certification programs. These grants help California students achieve their higher education goals.

A Department of Energy tax incentive that provides rebates to businesses when they use alternative energy, including solar.

Provide investors tax incentives to invest in low-income census tracts by allowing them to defer tax on capital gains and decrease taxes on potential future gains.

is a federal income tax credit incentive provided to private sector employers. An employer may be eligible for WOTC when they hire from certain target groups of job seekers who face employment barriers.

The Facade Improvement Program grants businesses in and near the downtown area, up to $15,000 to assist with exterior design upgrades.

Please note, businesses must apply and receive a Commitment Letter from the City prior to starting construction in order to be eligible.