Federal

Santa Clara County

  • Foreign Trade Zone
    • The U.S. Foreign Trade Zone Program is one of the nation’s earliest attempts to stimulate economic development and facilitate global trade and commerce.  The U.S. Congress passed the Foreign Trade Zone Act in 1934.  The Foreign Trade Zone program has enhanced global competitiveness for U.S.-based companies, particularly for firms engaged in manufacturing or production.
    • The City of San Jose received the Foreign Trade Zone grant of authority from the federal government in 1974 – the 18th Foreign Trade Zone established in the U.S.  The City of San Jose contracts with San Jose Distribution Services, a private warehouse and logistics company, to operate the General Purpose Foreign Trade Zone.  The General Purpose Zone is located at 2055 South Seventh Street, Suite A in San Jose’s Monterey Corridor industrial area.
    • As the grantee, the City of San Jose is responsible for administering the Foreign Trade Zone in Santa Clara, Monterey, San Benito and Santa Cruz counties, and the southern part of Alameda and San Mateo counties.
  • Water Efficient Technologies (WET)
    • The Water Efficient Technologies (WET) program offers rebates of up to $50,000 per water efficiency project to businesses that discharge to the San Jose/Santa Clara Water Pollution Control Plant. The Plant's service area includes San José, Santa Clara, Milpitas, Campbell, Cupertino, Los Gatos, Monte Sereno, and Saratoga. WET is sponsored by the Plant and the Santa Clara Valley Water District.

City of San Jose

  • San Jose Storefronts Initiative
    • SJ Storefronts Initiative is a $250,000 Office of Economic Development grant opportunity to help small businesses lease vacant spaces by offsetting the cost of City permits, fees and taxes. The goal of this Initiative is to strengthen the economic vitality of Downtown San Jose and the City’s Neighborhood Business Districts.
      The City of San Jose’s Office of Economic Development invites proposals from applicants in the following categories:
      • Individuals: entrepreneurs or sole proprietors
      • Small business owners
      •  Nonprofit organizations
      •  Landlords or property owners working with prospective businesses/tenants; and
      •  Contractors working with businesses and/or property owners

 

  • Enterprise Zone
    • Assembly Bill 93 and Senate Bill 90 passed and Governor Brown signed into Law.
      • The outcome of the bills are that the San Jose Enterprise Zone is repelled and sunsets December 31, 2013. The City of San Jose in collaboration and coalition with other agencies lobbied aggressively to preserve the Enterprise Zone program.
    • WHAT IS NEW FOR THE FUTURE (Starting January 1, 2014)
    •  The State of California will have three new programs to replace the Enterprise Zone Program
      • 1. Sales Tax exemption on Manufacturing Equipment.
        • Company has to be in the following industry codes (NAICS Codes 3111 to 3399,inclusive, 541711, or 541712)
        • Company has to be located in eligible census tracts as determined by the Stateof California Department of Finance or a former Enterprise Zone boundary.
        • There will be an exemption from the State portion of sales tax (4.19%) for allqualified equipment purchased after 1/1/2014
        • Qualifying equipment is identified as equipment used primarily inmanufacturing, processing, refining, fabricating, or recycling of property
        • In order to receive the exemption, companies will need to apply to the State ofCalifornia for an exemption certificate. (There are no additional details at the present time how to do this)
      • 2. Hiring Tax Credit. The new Hiring Tax credit will be administered completely by theState of California NOT the City of San Jose. In order to receive a hiring tax credit thefollowing specific conditions have to be met.
        • Companies in the following categories ARE NOT eligible for a hiring Tax credit.(NAICS Codes 44-45, 561320, 711110, 713210, 721120, 722410,722511,722513, 722514, or 722515)
        • Five types of qualified hires are eligible. Calworks, Ex-Offenders/Felons,Veterans, Individuals unemployed 6 months or longer, individuals that areeligible for the Earned Income Credito Companies have to contact the Franchise Tax Board within 30 days of hire to“reserve ”a credito Employee has to be paid between $12 and $28
        • Company has to show proof of hire at the end of the calendar year to receivecredito Company has to be located in eligible census tracts as determined by the Stateof California Department of Finance or a former Enterprise Zone boundary.
          • It is possible that certain areas of the current Enterprise Zone may NOTbe eligible based upon census data. (There are no additional details atthe present time how San Jose may be impacted)
        • Credit will only be given for net NEW company jobs
        • Credit is 35% of the portion of wages over $12/hr. and below $28/hr. per yearover five years 
          • Example an employee makes $13/hr.
            • $1/hr. x 2080 hours (Full time employment)x 35% = $728 is the credit
      • 3. Go-Biz Negotiated Incentives. The Governor’s Office of Economic Development (Go-Biz)will negotiate contracts for credits to individual businesses that meet variousinvestment goals as established by Go-Biz.
City of Morgan Hill
  • Grow Morgan Hill Fund
    • Can be used City wide and provides qualified small business with SBA 7(a) loans.
    • Other Loan Programs are on hold.
  • Small Business Fee Deferral Program
    • The Morgan Hill Redevelopment Agency has developed the Small Business Fee Deferral Program in an effort to foster commercial and industrial development by helping to minimize the potential burden of City impact fees (e.g., sewer, traffic, and in-lieu utility under grounding and water fees) on new construction, expansion, or relocation projects.
  •  Utility Undergrounding Fee Deferral Program
    • In general terms, the program enables new and expanding businesses to defer up to 80% of their utility undergrounding fees for a period not to exceed five years. Eligible property owners must pay a minimum of 20% of their utility undergrounding fees prior to obtaining building  permits. The balance would be financed under the Program as a normally amortized loan requiring equal monthly payments over a term that would not be longer than 5 years. Interest, at the Local Agency Investment Fund (LAIF) rate plus ½% at the time the loan was initiated would be incorporated into the payments. Prepayment is permitted without penalty.

City of Gilroy

  • City of Gilroy Jobs Offset Program
    • Industrial businesses that generate new jobs may be eligible for a jobs offset incentive. In order to qualify, the business must create at least 25 permanent full-time jobs within two (2) years of the opening of the new business. A credit of up to $4,000 per job may be granted for each job that has any combination of annual salary and benefits of at least $45,000.
    • The number of jobs created and the salary and benefit package minimums must be met for three consecutive years following the initial attainment of the guaranteed employment level. The credit must be applied against the development fees due for the project, and may not exceed the amount of the development fees due from the new business. If the salary and benefit package minimums are not met or are not maintained for three (3) consecutive years following the initial attainment of the guaranteed employment level, the business shall pay to the City the amount of the credit per job multiplied by the number of jobs by which the business falls short, plus interest at the highest yield rate in the City's investment portfolio.
  • City of Gilroy Tax Offset Program  
    • Single Businesses
      • In the case of sales tax, the business must generate at least $50,000 in sales tax revenue to the City annually. The total offset may be accumulated for a period not to exceed three (3) years. The three-year period will commence upon the issuance of the certificate of occupancy for the business. The tax offset must be applied against the development fees due for the project, and may not exceed the amount of development fees plus interest thereon due from the new business.  
    • Commercial or Industrial Centers
      • In the case of sales tax, a single center comprised of multi-tenant businesses may qualify for the incentive if it collectively generates an average of at least $50,001 in sales tax revenue to the City annually.\
      • The amount of sales tax generated by the multi-tenant center must: (1) exceed amount $50,000 annually when averaged over a three year period, and (2) be equal to an amount of $2.00 or more per gross square foot of the multi-tenant center building area in excess of 25,000 square feet. The total offset may be accumulated for a period not to exceed three (3) years. The three-year period will commence one year from the issuance of the first certificate of occupancy to occupy a space at the center. The tax offset must be applied against the development fees due for the project, and may not exceed the amount of development fees plus interest thereon due from the commercial/industrial center.
    • Multi-tenant/Owner Industrial Developments
      • Developers of multi-tenant/owner industrial buildings may be eligible for a job-offset credit if the businesses that will ultimately occupy the multi-tenant/owner building employ a cumulative total of at least 25 permanent employees that meet the minimum wage and benefit requirements stated above.
      • The minimum employment level must be met within two (2) years of the issuance of the first certificate of occupancy for the first building. The minimum 25 permanent employees that meet the wage and benefit package must be maintained for a minimum of three (3) consecutive years following the initial attainment of the guaranteed employment level.