Business Incentives

Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

Timber Harvesting Partial Sales and Use Tax Exemption
The California Department of Tax and Fee Administration (CDTFA) offers a partial exemption from sales and use tax for sales and purchases of equipment, machinery and their parts designed primarily for off-road use in commercial timber harvesting operations.

California Forest Improvement Program (CFIP)
CalFIRE cost-shares with landowners planning or implementing forest management of sub-merchantable trees outside commercial timber operations.

California Climate Investments (CCI) Forest Health Grant Program
CalFIRE offers grants up to $5M for biomass utilization and fuels reduction projects for non-business applicants.

Forest and Watershed Health Grant Program
The Sierra Nevada Conservancy (SNC) will collaborate to develop forest health planning projects for large landscapes (>10k acres) for non-business applicants.

Resilient Sierra Nevada Communities Directed Grant Program
The Sierra Nevada Conservancy (SNC) supports the planning and implementation of projects that will increase community resiliency, for non-business applicants.

Sales and Use Tax Exemption for Agriculture
The California Department of Tax and Fee Administration administers a partial exemption from the sales and use tax for the sale, storage, use, or other consumption of farm equipment, machinery and their parts.

Timber Harvesting Partial Sales and Use Tax Exemption
The California Department of Tax and Fee Administration offers a partial exemption from sales and use tax for sales and purchases of equipment, machinery and their parts designed primarily for off-road use in commercial timber harvesting operations.

U.S. Small Business Administration (SBA)
To learn more about applying for a guaranteed loan, please visit the SBA or find a District Office near you.

United States Department of Agriculture (USDA) Rural Development
The USDA provides funding opportunities for rural small businesses through loans, loan guarantees, and grants.

Sales and Use Tax Exemption for Manufacturing
The California Department of Tax and Fee Administration administers a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.

Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

California Sustainable Energy Entrepreneur Development (CalSEED) Initiative
Provides small grant funding for entrepreneurs and researchers to demonstrate concept feasibility of their new clean energy technology ideas.

California Infrastructure and Economic Development Bank (IBank) CLEEN Center
The IBank established the California Lending for Energy and Environmental Needs (CLEEN) Center to offer financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.

Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

Low Carbon Transportation Investments and Air Quality Improvement Program
This project is designed to promote the purchase of battery electric, plug-in hybrid electric, and fuel cell electric vehicles. Rebates of up to $7,000 per light-duty vehicle are available for individuals, nonprofits, government entities, and business owners who purchase or lease an eligible vehicle.

Clean Transportation Program
The California Energy Commission offers a competitive grant program that provides up to $100 million annually towards innovative transportation and fuel technologies that help California meet its energy, clean air, and climate-change goals.

California Infrastructure and Economic Development Bank (IBank) CLEEN Center
The IBank established the California Lending for Energy and Environmental Needs (CLEEN) Center to offer financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.

Carl Moyer Memorial Air Quality Standards Attainment Program
This program provides grant funds for cleaner-than-required engines and equipment. Eligible projects include cleaner on-road trucks, school and transit buses, off-road equipment, marine vessels, locomotives, agricultural equipment, light duty vehicle scrap, and lawn mowers.

Cool California Funding Wizard
The Funding Wizard can help you find grants related to energy efficiency upgrades and rebates, with a particular emphasis on sustainable and environmentally-friendly business practices.

Electric Program Investment Charge
The California Energy Commission funds applied research and development, technology demonstration and deployment, and market facilitation to create new energy solutions, foster regional innovation, and bring clean energy ideas to the marketplace.

California Sustainable Energy Entrepreneur Development (CalSEED) Initiative
Provides small grant funding for entrepreneurs and researchers to demonstrate concept feasibility of their new clean energy technology ideas.

Hybrid and Zero Emission Truck and Bus Voucher Incentive Project
These vouchers are intended to reduce about half the incremental costs of purchasing hybrid and zero-emission medium-duty and heavy-duty trucks and buses. Vouchers range from $20,000 to $110,000, with additional funds available for fleets located in disadvantaged communities.

Natural Gas Research Program
From the California Energy Commission, this program focuses on conducting research that leads to technology advancements that reduce energy use and greenhouse gas emissions. Funding comes from, and must benefit, California’s investor-owned utility ratepayers.

Sales and Use Tax Exemption for Manufacturing
The California Department of Tax and Fee Administration administers a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.

Film and Television Tax Credit Program 3.0
The California Film Commission provides tax credits to qualified productions (TV projects and feature films) that are produced in California.

Teleproduction Exemption
The California Department of Tax and Fee Administration offers a partial sales and use tax exemption for the sale, storage, use or other consumption of machinery, equipment including component parts to a qualified person used primarily in tele production or other postproduction service.

Food Production Investment Program
The Energy Commission’s Food Production Investment Program (FPIP) provides competitive grants to California’s food processing industry to adopt commercially available and advanced energy technologies at their plants to reduce its greenhouse gas emissions.

Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.

New Employment Credit
The New Employment Credit is an income tax credit available to companies that hire qualified full-time employees within designated geographic areas.

Research & Development Tax Credit
A business may qualify for an income tax credit if it paid for or incurred qualified research expenses while conducting qualified research activity in California. Qualified research expenses include wages, supplies, and contract research costs.

Sales and Use Tax Exemption for Manufacturing
The California Department of Tax and Fee Administration administers a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.

Sales and Use Tax Exemption for Manufacturing
The California Department of Tax and Fee Administration administers a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.

California Infrastructure and Economic Development Bank (IBank) CLEEN Center
The IBank established the California Lending for Energy and Environmental Needs (CLEEN) Center to offer financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.

Greenhouse Gas Reduction Grants and Loans
The California Department of Resources Recycling and Recovery established the Greenhouse Gas Reduction Grant and loan program to promote infrastructure development for recycling manufacturing, composting, and anaerobic digestion facilities in California that divert more materials from landfills and reduce greenhouse gas emissions. Grant funds also available for food rescue and food waste prevention projects that benefit disadvantaged communities.

Tire Incentive Program
The Tire Incentive Program provides a reimbursement (as an incentive payment program) to eligible businesses to use crumb rubber in eligible products or substitute crumb rubber for virgin rubber, plastic, or other raw materials in products. The program’s goal is to increase demand for crumb rubber and promote higher value products.

The Recycled Fiber, Plastic, and Glass Grant Program
The Recycled Fiber, Plastic, and Glass Grant Program is a competitive program designed to further the purposes of the California Global Warming Solutions Act (AB 32) by lowering overall greenhouse gas emissions through the expansion of existing capacity or establishment of new facilities in California that use California-generated postconsumer recycled fiber (paper, old corrugated cardboard, paper board, or textiles), plastic, or glass to manufacture products.

The Organics Grant Program
The Organics Grant Program is a competitive grant program designed to lower overall greenhouse gas emissions by expanding existing capacity or establishing new facilities in California to reduce the amount of California-generated green materials, food materials, or alternative daily cover being sent to landfills.

Sales and Use Tax Exemption for Manufacturing
The California Department of Tax and Fee Administration administers a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.

Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

California Sustainable Energy Entrepreneur Development (CalSEED) Initiative
Provides small grant funding for entrepreneurs and researchers to demonstrate concept feasibility of their new clean energy technology ideas.

California Infrastructure and Economic Development Bank (IBank) CLEEN Center
The IBank established the California Lending for Energy and Environmental Needs (CLEEN) Center to offer financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.

California’s Workforce Development Board
The California Workforce Development Board works to serve employment and training needs for companies. Employee recruitment and technical assistance services are predominantly provided through regional One-Stop Career Centers at no cost.

Employment Training Panel
The Employment Training Panel (ETP) provides funding to employers for training that upgrades the skills of their workers.

Joint Venture Program
This program allows companies to establish enterprises inside California’s prisons to employ inmates. Employers pay comparable wages, but save substantially on employment benefit costs. Employees selected to participate have a strong desire to work and learn job skills.

Work Opportunity Tax Credit
The Employment Development Department is the Work Opportunity Tax Credit (WOTC) certifying agency for California employers. WOTC is a federal tax credit incentive available to employers for hiring individuals from certain target groups (veterans, ex-felons, youth, and more) who have consistently faced significant barriers to employment.

New Employment Credit
The New Employment Credit is an income tax credit available to companies that hire full-time employees within designated geographic areas.

Fidelity Bonding Program
The Employment Development Department Fidelity Bonding Program (PDF) helps ease employers’ concerns with hiring ex-offenders and at-risk job applicants by providing a level of insurance for employers against possible theft and dishonest or fraudulent acts. The bonding program is provided at no cost to employers, employees, and job seekers at America’s Job Center of California locations.

California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.

California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.

New Employment Credit
The New Employment Credit is an income tax credit available to companies that hire qualified full-time employees within designated geographic areas.

California Infrastructure and Economic Development Bank (IBank) CLEEN Center
The IBank established the California Lending for Energy and Environmental Needs (CLEEN) Center to offer financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.

Industrial Development Bonds
Industrial development bonds provide financing for the acquisition, construction, rehabilitation and equipping of manufacturing and processing facilities for private companies.

Small Business Loan Guarantee Program
This program provides access to capitalthat may not have been available to growing businesses without this guarantee. The guarantee minimizes the credit risk for lenders, and makes it possible for new and existing businesses in California to qualify for small business loans.

California Capital Access Program
This program encourages lenders to make loans to small businesses that may have difficulty obtaining capital. These credit enhancement mechanisms minimizes the credit risk for lenders, and makes it possible for new and existing businesses in California to qualify for small business loans.

New Employment Credit
The New Employment Credit is an income tax credit available to companies that hire qualified full-time employees within designated geographic areas.

Small Business Certification Program
Certified small business (SBs) and microbusinesses (MBs) are entitled to benefits in the state contracting process.

Disabled Veterans Business Enterprise Certification
Disabled veteran business enterprises are eligible for special benefits in the state contracting process.

California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.

California Infrastructure and Economic Development Bank Export Financing Program
This program helps provide loans to small businesses that sell goods in other countries through the Small Business Loan Guarantee Program.

Export-Import Bank
This bank is the official export credit agency of the United States. Its mission is to ensure that U.S. companies ΓÇö large and small ΓÇö have access to the financing they need to turn export opportunities into sales.

Self-Generation Incentive Program
This program provides rebates for qualifying distributed energy systems installed on the customer’s side of the utility meter. Qualifying technologies include wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage systems.

Greenhouse Gas Reduction Grants and Loans
The California Department of Resources Recycling and Recovery established the Greenhouse Gas Reduction Grant and loan program to promote infrastructure development for recycling manufacturing, composting, and anaerobic digestion facilities in California that divert more materials from landfills and reduce greenhouse gas emissions. Grant funds also available for food rescue and food waste prevention projects that benefit disadvantaged communities.

Tire Incentive Program
The Tire Incentive Program provides a reimbursement (as an incentive payment program) to eligible businesses to use crumb rubber in eligible products or substitute crumb rubber for virgin rubber, plastic, or other raw materials in products. The program’s goal is to increase demand for crumb rubber and promote higher value products.

The Recycled Fiber, Plastic, and Glass Grant Program
The Recycled Fiber, Plastic, and Glass Grant Program is a competitive program designed to further the purposes of the California Global Warming Solutions Act (AB 32) by lowering overall greenhouse gas emissions through the expansion of existing capacity or establishment of new facilities in California that use California-generated postconsumer recycled fiber (paper, old corrugated cardboard, paper board, or textiles), plastic, or glass to manufacture products.

The Organics Grant Program
The Organics Grant Program is a competitive grant program designed to lower overall greenhouse gas emissions by expanding existing capacity or establishing new facilities in California to reduce the amount of California-generated green materials, food materials, or alternative daily cover being sent to landfills.

California Infrastructure and Economic Development Bank (IBank) CLEEN Center
The IBank established the California Lending for Energy and Environmental Needs (CLEEN) Center to offer financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.

California Pollution Control Financing
The California Pollution Control Financing Authority provides tax-exempt bond financing for pollution control projects. The securities pay for acquisition, construction or installation of qualified pollution control, water furnishing, waste disposal, waste recovery facilities, and equipment.

Fidelity Bonding Program
The Employment Development Department Fidelity Bonding Program (PDF) helps ease employers’ concerns with hiring ex-offenders and at-risk job applicants by providing a level of insurance for employers against possible theft and dishonest or fraudulent acts. The bonding program is provided at no cost to employers, employees, and job seekers at America’s Job Center of California locations.

Industrial Development Bonds
Industrial development bonds provide financing for the acquisition, construction, rehabilitation and equipping of manufacturing and processing facilities for private companies.

Brownfields Revolving Loan Fund Program
This program provides low-interest rate loans between $200,000 and $900,000 for financing cleanup activities of sites by eligible public or private property owners, including government agencies, private property owners as well as non-profit organizations.

California Capital Access Program
This program encourages lenders to make loans to small businesses that may have difficulty obtaining capital. These credit enhancement mechanisms minimizes the credit risk for lenders, and makes it possible for new and existing businesses in California to qualify for small business loans.

California Infrastructure and Economic Development Bank (IBank) CLEEN Center
The IBank established the California Lending for Energy and Environmental Needs (CLEEN) Center to offer financing to public agencies and non-profit corporations to help achieve the State’s greenhouse gas reduction goals and increase market confidence in green investing.

California Infrastructure and Economic Development Bank Export Financing Program
This program helps provide loans to small businesses that sell goods in other countries through the Small Business Loan Guarantee Program.

Export-Import Bank
This bank is the official export credit agency of the United States. Its mission is to ensure that U.S. companies ΓÇö large and small ΓÇö have access to the financing they need to turn export opportunities into sales.

Farm Loan Program
This program supports direct loans to small farms through participating Financial Development Corporations (FDCs). Loans are 90% guaranteed by the U.S. Department of Agriculture, Farm Serviced Agency (FSA).

JumpStart Loan Guarantee Program
The program provides microloans for low-wealth entrepreneurs located in a low wealth community or disaster area.

Truck Loan Assistance Program
The Truck Loan Assistance Program helps small business truck owners that fall below conventional lending criteria and are unable to qualify for traditional financing for cleaner trucks.

Recycling Market Development Zone Loan Program
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 zone.

Small Business Loan Guarantee Program
This program provides access to capitalthat may not have been available to growing businesses without this guarantee. The guarantee minimizes the credit risk for lenders, and makes it possible for new and existing businesses in California to qualify for small business loans.

Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a full sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.

California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.

Film and Television Tax Credit Program 3.0
The California Film Commission provides tax credits to qualified productions (TV projects and feature films) that are produced in California.

New Employment Credit
The New Employment Credit is an income tax credit available to companies that hire qualified full-time employees within designated geographic areas.

Research & Development Tax Credit
A business may qualify for an income tax credit if it paid for or incurred qualified research expenses while conducting qualified research activity in California. Qualified research expenses include wages, supplies, and contract research costs.

Sales and Use Tax Exemption for Agriculture
The California Department of Tax and Fee Administration administers a partial exemption from the sales and use tax for the sale, storage, use, or other consumption of farm equipment, machinery and their parts.

Sales and Use Tax Exemption for Manufacturing
The California Department of Tax and Fee Administration administers a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.

Teleproduction Exemption
The California Department of Tax and Fee Administration offers a partial sales and use tax exemption for the sale, storage, use or other consumption of machinery, equipment including component parts to a qualified person used primarily in teleproduction or other postproduction service.

Timber Harvesting Partial Sales and Use Tax Exemption
The California Department of Tax and Fee Administration offers a partial exemption from sales and use tax for sales and purchases of equipment, machinery and their parts designed primarily for off-road use in commercial timber harvesting operations.

Self-Generation Incentive Program
This program provides rebates for qualifying distributed energy systems installed on the customer’s side of the utility meter. Qualifying technologies include wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage systems.