Incentives

The City of Visalia offers incentives to qualified Visalia commercial projects of various sizes. If you have questions regarding any of the following incentive information, please contact Devon Jones at [email protected] or (559) 713-4190.  

City of Visalia:

1) 5-year impact fee financing to qualified industrial projects secured by a lien against real property. 
    Development impact fees (excluding sewer treatment and trunk line capacity impact fees) for qualified projects could be deferrable over a 5 year period, with no interest or administrative fees assessed. An initial payment of 20% shall be due and payable at building occupancy. The remaining balance will be paid over 5 annual installments, collected on the property tax roll.

2) 10 year sewer impact fee deferral program: 
    Companies located within the city limits with a permitted wastewater discharge capacity in excess of five hundred thousand (500,000) gallons per day may pay their sewer impact fees over ten (10) years. The first installment of ten (10) percent shall be due prior to occupancy, and the balance shall be paid in nine (9) equal annual installments thereafter. No interest shall accrue during the first five (5) years. Any balance remaining after the fifth year shall accrue interest at the rate of the city sewer connection services interest rate annually set by city council. All payments due after the initial payment shall be collected on the property tax roll. The collection of the balance due on the property tax roll shall not preclude the earlier payment of any outstanding balance. 

3) Infill Fee Credits

A reduction in the amount of Transportation Impact Fees will be provided to all Commercial and Office Projects that meet the following criteria:

1. The project is in a location where the curb, gutter and sidewalk have been installed in the ultimate alignment.
2. The project is seventy-five percent surrounded by existing development that has been in place an average of fifteen years or more.
3. Any median islands that are planned on adjacent roadways have been installed.
4. The project was inside of the Visalia city limits prior to December 31, 1995.

Projects that meet the infill criteria:

1. Receive Transportation Impact Fee reductions not to exceed twenty-five percent of the base fee.
2. Are not eligible for reimbursements or credits for any street improvements or repairs that are required by the City as a project condition.
3. The City Manager or their designee is authorized to determine whether a project meets the infill criteria.

The City also has a "Special Downtown TIF Credit Zone" with a TIF credit of 25% (Cost of future street improvements in this area will be significantly less because of the "trend toward walkability" [less vehicle trips]). This can be applied in addition to any potential 25% "Infill Credit" approved for the project as well.  

4) No local utility user taxes – unlike most cities in California, the City of Visalia does not charge any local utility user taxes potentially generating substantial savings.

There is also a number of other incentive programs available to Visalia businesses, some of which are detailed further below. In addition, please consider reviewing the CA GO-Biz Business Investment Guide for a comprehensive look at the various incentive programs available.

Workforce:

1) On-the-Job Training 
    On the Job Training is a program that provides wage reimbursements when qualified hires are made through a Workforce Innovation and Opportunity Act (WIOA) supported program. The reimbursement can be up to 50% of average wages for eligible employees during a training period typically ranging from 160 hours to 320 hours. 
    Contact: Workforce Investment Board of Tulare County

2) Work-Opportunity Tax Credit (WOTC) 
    Tax credit for $2,400 (and potentially $9,000) for hiring workers who fall under certain categories, such as food stamp recipients between 18 and 39 years old; disabled veteran's and more. 
    Contact: Workforce Investment Board of Tulare County

3) California New Employment Credit 
    State of California hiring credit for eligible employers who hire qualified full-time employees to work in a designated geographic area (DGA) (most of commercially zoned area of Visalia are in DGA), file for and receive tentative credit reservations, and report credits on a timely filed original return.
    More information: CA Franchise Tax Board

4) Employment Training Panel (ETP) 
    ETP is a business and labor-supported program that funds the costs of vocational training. Program is performance-based, employers must provide proof that training hours have been completed and trainees have been retrained in well-paying jobs for a specific period of time before ETP reimburses payment. The College of the Sequoias Training Resource Center (TRC) is a Multiple Employer Contractor and as such can work with interested employers to provide customizable training of interest and administer the ETP paperwork and process.
    Contact: COS Training Resource Center

5) Homeless Hiring Credit

The Homeless Hiring Tax Credit (HHTC) is available for taxable years beginning January 1, 2022 through December 31, 2026. Employers may receive $2,500 to $10,000 in tax credit per eligible employee based on the actual hours worked in the taxable year. Employers may claim up to $30,000 of credit per taxable year. To be eligible, the employee must be certified by a certifying organization. Employers must make a tentative credit reservation with the Franchise Tax Board to claim the credit.

    Contact: Workforce Investment Board of Tulare County

6) No Cost Employee Recruitment Assistance

The WIB and partners at the Employment Connection provide ongoing assistance to interested employers who need help recruiting qualified employees. They can assist with conducting recruitment events, pre-screening, and identifying training opportunities for potential workers. 

    Contact: Workforce Investment Board of Tulare County  

7) Paid Family Leave Mini-grant

The Tulare Kings Hispanic Chamber of Commerce administers a mini-grant program to assist small businesses impacted by CA Paid Family Leave. Businesses with less than 50 employees are eligible to receive $2000 per employee and businesses with 51-100 employees are eligible to receive $1000 per employee to offset the cost incurred when training employees to cover the duties of the individual utilizing PFL.

Contact: Tulare Kings Hispanic Chamber of Commerce

State:

1) Manufacturing and Research and Development Exemption 
    A new law beginning on July 1, 2014 allows manufacturers and certain research and developers to obtain a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases. 
    Contact: California Department of Tax and Fee Administration

2) California Competes Tax Credit 
    This 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 statutorily created "California Competes Tax Credit Committee," consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, one appointee each by the Speaker of the Assembly and Senate Committee on Rules. 
    CA Governor’s Office of Business and Economic Development

3) Recycling Market Development Zone (RMDZ)
    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.    
    The RMDZ loan program can also 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 companies who recycle materials which would otherwise be sent to landfills.      

Contact: Economic Development Corporation of Tulare County

Federal:

1) Opportunity Zone

               OZs are a new tool for community development. Established in the Tax Cuts and Jobs Act of 2017, Opportunity Zones provide tax incentives for investment in designated census tracts through qualified Opportunity Funds. For more info on those specific tracts and the program itself, please go to http://www.visalia.city/opzones. The entire Industrial Park, Business Research Park, and Oval Park commercial corridor are included in the OZ as well as numerous residential, commercial, and office development opportunities across the City.

2) Historically Underutilized Business (HUB) Zone 
    The HUB Zone is administered by the U.S. Small Business Administration (SBA) and was 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. 
    Contact: Small Business Administration (SBA)
    

3) Foreign-Trade Zone 
    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 anywhere in Tulare County to include your company's facilities. 
    Contact: Devon Jones at [email protected]

4) 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. NMTC are focused on projects that demonstrate the highest community development outcomes for those communities that need it most. 
 Contact:  Economic Development Corporation of Tulare County

SCE Economic Development Rate

The Economic Development rate program at Southern CA Edison is an energy discount available to assist businesses stay in or grow in SCE territory vs. move out of state. Specifically, the program offers a 12% discount on your energy bill for a 5 year period. 

Contact: SCE Economic Development

Devon Jones
Economic Development Manager
315 E. Acequia
Visalia, CA 93291
559-713-4190
[email protected]