The City understands the importance of creating jobs and supporting economic development in the community. The City currently offers some of the below formal incentive programs. However, the City is willing to negotiate additional incentives with businesses that bring significant jobs and revenue to the community. In order to discuss a customized incentive program, please contact Amie Mendes, Economic Development Manager, at (209) 366-7235 or firstname.lastname@example.org.
California Competes Tax Credit Program
California Competes is an income tax credit available to businesses that are looking to locate in California or stay and expand in California. The credit is available statewide to all industries through an online competitive application process. 25% of the credits available each year are specifically reserved for small businesses (gross receipts, less returns and allowances, of less than $2 million in the business’ prior tax year). Tax credit agreements will be negotiated by GO-Biz and approved by the “California Competes Tax Credit Committee”. For more information, visit http://www.business.ca.gov/Programs/CaliforniaCompetesTaxCredit.aspx.
Sales & Use Tax Exemption for Manufacturers and R & D Companies
The Sales and Use Tax Exemption allows manufacturers and research and development companies to obtain a partial exemption of sales and use tax on equipment purchases. The exemption applies to the State of California portion of sales and use tax collected on machinery and equipment purchases (including component parts) as well as other qualifying purchases. The exemption amount is currently 3.9375 % of the total sales or use tax collected. For more information, visit https://www.cdtfa.ca.gov/industry/manufacturing-exemptions.htm#Overview.
Statewide Community Infrastructure Program (SCIP)The City of Galt has partnered with the California Statewide Communities Development Authority (CSCDA) to offer developers a cost-effective option for the financing of development impact fees and public improvements for both non-residential and residential projects through the Statewide Community Infrastructure Program (SCIP). SCIP can assist in project cash flow by providing low-cost tax-exempt financing of a variety of development impact fees and/or public improvements. This also allows smaller projects to have access to tax exempt financing. For questions related to SCIP, download the latest SCIP Presentation or contact the Economic Development Department at 209-366-7235.
Grow Sacramento Fund (GSF)
The Grow Sacramento Fund (GSF) can provide loans between $75,000 and $2M for commercial or industrial projects. Loan proceeds can be used for the acquisition, construction or rehabilitation of a building, leasehold improvements, machinery and equipment, and long-term working capital. GSF provides longer repayment terms, lower down payments and interest rates, and flexible structuring and underwriting in comparison to traditional lending institutions. Visit http://growsacramentofund.com for more information.
Property Assessed Clean Energy Financing (PACE)
The City has partnered with Figtree Financing and CaliforniaFIRST to offer Property Assessed Clean Energy (PACE) Financing. PACE financing allows up to 20% of a property’s value to be financed for energy efficiency, renewable energy, or water conservation upgrades. The financing creates an assessment lien on the property and is repaid as semi-annual installments on the property tax bill. PACE Financing requires no money down, fixed low interest rates, long term financing up to 25 years, and qualifying is property based not credit based.
Recycling Market Development Zone (RMDZ) Program
The City of Galt partnered with Cal Recycle and other communities in Sacramento County to form a regional RMDZ Program. The RMDZ Program is a business assistance program. Qualifying manufacturers in an RMDZ are eligible to receive low interest loans from the State. Companies in an RMDZ have access to other benefits, such as assistance locating recycled materials for processing and identifying new customers. The RMDZ program was designed to create an increase in market demand for local recycled material.
To see if you qualify for the Program or for questions related to RMDZ Program, visit the Cal Recycle website http://www.calrecycle.ca.gov/rmdz/
Employment Training Panel (ETP)
ETP is a California State agency that provides funding to employers to assist in upgrading the skills of their workers through training that leads to good paying, long-term jobs. The ETP is a funding agency, not a training agency. Businesses determine their own training needs and how to provide training. ETP provides a funding mechanism to enable employers to efficiently and effectively train their employees. For more information, visit http://www.etp.ca.gov/.