Businesses locating or expanding in Kings County have access to numerous local, state and federal incentives. Kings EDC staff will help you navigate through this list, focusing on incentives that match your business model. Incentives include one-stop permitting assistance, waiver or reduction of development/permit fees, a database on land, buildings, markets, and feedstock, a micro revolving loan fund, and installment payment of fees.
Recycling Market Development Zone
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 designated RMD zone. The RMDZ loan program can fund a maximum of 75% of costs directly attributed to an eligible project up to a maximum of $2 million, whichever is less. This benefit is available to all companies in Kings County that meet the RMDZ criteria. Visit the CalRecycle RMDZ website Visit the Greater South San Joaquin Valley RMDZ website
Kings County Opportunity Zone
The Governor, authorized by the federal tax bill passed at the end of December 2017, is allowed to designate certain census tracts as Opportunity Zones. Individuals making investments through special funds in these zones are allowed to defer or eliminate federal taxes on capital gains. The Governor can designate up to 25 percent of census tracts that either have poverty rates of at least 20 percent or median family incomes of no more than 80 percent of statewide or metropolitan area family income. The Governor designated his full allotment of 879 qualifying tracts. As census tracts are designed to capture geographic areas of around 4,000 people, more than 3 million Californians would potentially be located in one of these areas. Click on the map to see the Kings County Opportunity Zone. To determine if your location is within the Kings County Opportunity Zone, please click on the address lookup. More illuminating information can be found by clicking on the FAQ page. To stay abreast of the program, continue to review the California Department of Finance’s Opportunity Zone page.
Governor’s Economic Development Incentives
New Employment Credit The New Employment Credit is available for business located in certain census tracts, as well as the former Enterprise Zones, that hires a qualified full-time employee on or after January 1, 2014. A percent of qualified wages can be claimed as a tax credit against business income. Learn more
California Competes Tax Credit The Governor’s Office of Business and Economic Development (GO-Biz) administers the California Competes Tax Credit. It is an income tax credit available to businesses that want to locate a new business or stay and grow in California. Learn more about claiming the credit on your tax return
Sales Tax Exemption The State Board of Equalization administers a partial sales tax exemption to businesses that purchase qualified property. The partial exemption rate is currently 4.1875 percent. Learn more about the Sales Tax Exemption
The reimbursement is equal to 50% of average wages for eligible employees during a typical training period of three to four months, depending on the applicant’s experience and the requirements of the job. If interested, Contact Us, or call 559.585.3532.
City of Hanford Local Incentives
The City of Hanford offers numerous incentives for business expansions and locations, including permit fast-tracking, Development Fee Payment Deferral, business loans and personal attention to processing your permit as quickly as possible. Visit the City of Hanford website.
California Business Portal
The California Business Portal provides information for businesses and their needs covering start up, financial needs, incentives, registration, permits and the workforce. Visit the California Business Portal.
The Historically Underutilized Business Zone (HUBZone) is administered by the U.S. Small Business Administration (SBA) and is designed to stimulate economic development and create jobs in urban and rural communities by providing Federal contracting preferences to small businesses. The HUBZone applies to qualified small businesses (by SBA standards) located within the zone’s boundaries with at least 35% of their employees residing in a HUBZone. The City of Hanford’s HUBZone is defined by qualified census tracts. Visit the HUBZone website
A U.S. Foreign-Trade Zone (FTZ or Zone) is a designated area which, for Customs purposes, is considered outside the U.S. Nearly any imported merchandise can be brought into a Zone for almost any kind of manipulation, duty-free. If you are not currently located within the FTZ, a sub-zone can be created virtually to include your company’s facilities. Visit the Foreign Trade Zone website
Work-Opportunity Tax Credit (WOTC)
A tax credit of $2,400 (and potentially $9,000) for hiring workers who fall under certain categories, such as residents of empowerment zones or renewal communities; food stamp recipients between 18 and 39 years old; disabled veterans and more. Visit the WOTC Page on the EDD Website
Industrial Development Bonds
For companies looking to raise $2,000,000+ to build or expand manufacturing facilities, industrial development bonds offer a way to raise money in the tax-exempt marketplace, thereby obtaining a lower interest rate. Visit the Industrial Development Bonds page on the I-Bank Website
Revolving Loan Funds
The Kings County Economic Development Corporation, and some cities within Kings County have revolving loan funds which may be accessed by existing companies in the area or those looking to relocate to the area. Loans can be made to purchase business real estate, buildings, building improvements, and working capital. Find out more by calling our Loan Manager at 559.585.3578
Federal Research & Development Tax Credit
Federal tax credit equal to 20% of the amount by which qualified research expenditures for a taxable year exceeds its base amount for that year, or for basic research payments. View more information about the Federal R&D Tax Credit
State Research & Development Tax Credit
The California R&D Credit reduces income or franchise tax. Businesses who paid or incurred qualified research expenses while conducting qualified research in California may receive 15 percent of the excess of current year research expenditures over a computed base amount (minimum of 50 percent of current year research expenses). Visit the Franchise Tax Board website
New Market Tax Credit
Companies who invest in projects that qualify as Community Development Agencies get 39% of the project’s cost returned in the form of tax savings spread out over 7 years. View Information