INCENTIVES
LOCAL INCENTIVES AND CREDITS
Shasta knows that each primary industry job created brings new capital into our region’s economy and has a secondary employment multiplier effect. Our local governments have established these business expansion and relocation incentives to make it easier and more attractive to establish your company here.
$1,500 JOB CREDIT PER FULL TIME EMPLOYEE
In the City of Redding a job credit of $1,500- $5,000 per employee is available to companies creating 10 or more full-time jobs at or above the area’s median hourly wage. These credits can be used to offset development fees, up to $1 million per development. In the City of Anderson the credit is $500 per job up to $500,000 per development. In the City of Shasta Lake the credit is $500 per job up to $100,000 per development.
TRAFFIC IMPACT FEE WAIVER
This fee waiver is available to companies within the Cities of Redding, Anderson and Shasta Lake linked to job creation.
UTILITY RATE DISCOUNTS
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CITY OF REDDING
The Redding Electric Utility (REU) offers electric rate discounts for industrial users. These reductions are in addition to the already low rates that typically run 30% lower than the State average. These discounted rates are based on kWh usage and demand and are determined on a customized basis
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CITY OF SHASTA LAKE
New manufacturing facilities with a billing demand of 1 megawatt or more that locate within the City of Shasta Lake receive a discounted Economic Development [ED] Rate. In addition, all businesses located within the City’s Industrial Park are eligible for this Economic Development Rate, regardless of demand. This rate is in effect for 36 months and is not subject to change during that period.
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CITY OF ANDERSON & UNINCORPORATED AREAS OF SHASTA COUNTY
Pacific Gas & Electric Company offers an Economic Development Rate (EDR) of 12 percent Standard Discount for five-years on electricity in Shasta County to eligible businesses. These rates are available to commercial and industrial businesses with 150 kW minimum threshold energy loads, as well as to small businesses below 150 kW, that currently operate or are considering operating in California. An 18% Enhanced Discount is available in the cities of Anderson and Shasta Lake.
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STATE INCENTIVES AND CREDITS
NEW EMPLOYMENT CREDIT
Credit for each full-time employee hired based on wages that exceed 150% of the State minimum wage. Employee must meet certain qualifications. To be allowed the credit the business must be a qualified taxpayer within a designated geographic area and must have a net increase in the total number of full-time employees.
A Tentative Credit Reservation from Franchise Tax Board (FTB) is needed to qualify an employee for purposes of computing the credit. You will be able to request a TCR beginning on January 1, 2014. You must submit your application online. You will receive an immediate confirmation. You must request a TCR within 30 days of completing the Employment Development Department (EDD) New Hire Reporting Requirements.
MANUFACTURING, BIOTECH, R&D EQUIPMENT SALES TAX EXEMPTION
Manufacturers and R&D industries can obtain a partial exemption of sales tax on certain manufacturing and research and development equipment purchases on the state tax rate portion, currently at 3.9375%, until June 30, 2022. When you make a purchase or lease you must provide the seller with a partial exemption certificate to obtain the reduced tax rate. Construction contractors performing a contract to construct or improve a special purpose building for a qualifying business may also purchase materials, fixtures, machinery and equipment under the partial exemption.
Partial Exemption Certificate-Construction
CALIFORNIA COMPETES TAX CREDIT
The California Competes Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements will be negotiated by GO-Biz and approved by a newly created “California Competes Tax Credit Committee”
INDUSTRIAL DEVELOPMENT BONDS
Tax exempt securities for acquisition, construction, rehab and equipping manufacturing facilities. Low interest rate 20-30% below commercial, up to 30 years.
RESEARCH & DEVELOPMENT TAX CREDITS
Tax credits for in-house research expenses and a 24% credit for basic research payments to outside organizations.
CALIFORNIA EMPLOYMENT TRAINING PANEL
Job training funds available to all California manufacturing companies, or relocating to California from other states or countries. Provides funds for trainees who successfully complete training and are retained in well-paying jobs for a specific period of time.
FEDERAL INCENTIVES AND CREDITS
WORK OPPORTUNITY TAX CREDIT [WOTC]
An employer may qualify for a tax credit of up to $9,600 per employee if the employee is a member of a designated target group and meets that group’s specific requirements. Application must be completed and submitted within 28 days of hire.
Target Groups that Qualify for WOTC:
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- Qualified short-term recipients of Temporary Assistance to Needy Families (TANF)
- Qualified veterans receiving Food Stamps or with a service connected disability or unemployed
- Ex-felons hired no later than one year after conviction or release from prison
- Vocation rehabilitation referral
- Qualified Food Stamp recipients ages 18 through 39
- Qualified Supplemental Security Income recipient (SSI)
- Qualified long-term family assistance recipient
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HUBZONE BID PREFERENCE FOR FEDERAL CONTRACTS
The HUBZone Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a “principal office” in one of these specially designated areas. Shasta County has 13 census tracts that qualify.
HUBZone Quick Facts