Incentive Programs

Creating Jobs, Encouraging Local Investment and Saving Business Money

The SCVEDC is your primary point of contact to access local, state and federal incentives. Our team will help you navigate the regulatory and administrative hurdles required to apply to all available programs. Below is a brief summary of each incentive program. Click each of the programs below to learn more. 

Industry Cluster Attraction Incentive

In partnership with the County of Los Angeles, up to $40,000 (per company) has been made available to support the SCVEDC Industry Cluster Attraction Incentive (ICAI) program. The ICAI has been designed to attract new businesses in SCVEDC’s target industry clusters to the Santa Clarita Valley. Eligibility requirements include, but are not limited to the following.

  1. A business must open operations in the Santa Clarita Valley.
  2. The business operations must include work in one of SCVEDC’s target industry clusters of:
    - Aerospace + Defense
    - Medical Devices + Biomedical Technology
    - Digital Media + Entertainment
    - Advanced Manufacturing
    - Information Technology
  3. The business must employ at least 20 employees to be eligible for a minimum of $20,000.
To learn more about this opportunity, please review the ICAI Program Guidelines, ICAI Promotion Flyer and ICAI Application Form.
Here's our recent recipient!  Richard Photo Lab

 Please contact us for more information about this unique cluster-based incentive.

Foreign Trade Zone

Serving qualified sites within the Santa Clarita Valley, this extension of the U.S. Foreign-Trade Zone (FTZ) program offers international traders, importers and exporters outstanding opportunities to take advantage of special customs privileges. These incentives can lower barriers to trade, improve cash flow and enhance your company's profits while giving you a competitive edge in the global marketplace. Please contact us for more information about this unique program and to visit the Santa Clarita FTZ. 

Recycling Market Development Zone

The Recycling Market Development Zone (RMDZ) is a California state program aimed to simultaneously reduce landfill waste and encourage manufacturing. Santa Clarita is one of several designated RMDZs in the state of California, and as a result, Santa Clarita businesses are eligible for low-interest loans. To receive such a loan, the business (a manufacturer or processor) must demonstrate that it is either 1) reducing initial waste; 2) reusing production bi-products that would normally be dumped in a landfill; or 3) using recycled content in its manufacturing. Metal recycling is not eligible for a loan, as 90% of California’s metal is already recycled.

However, manufacturers that can demonstrate that they are recycling paper, plastic, glass and/or organic material are eligible. Incentives for qualifying businesses include low interest rate loan programs and technical assistance. For more information on how to apply to be a part of the RMDZ, contact us

Use Tax Incentive Credit Program

When businesses pay California Sales and Use Tax to a lessor or an out-of-state vendor, Santa Clarita receives only a small amount of the 1% local share. However, using a Direct Payment Permit system, Santa Clarita would receive the entire 1% local share back, benefiting Santa Clarita’s general fund, which supports public safety, parks, library, and infrastructure programs as well as a variety of other City services.

The incentive program provides businesses with either a cash rebate of 25 percent on the additional State collected use tax remitted to the City as a result of the business entering the State’s Use Tax Direct Payment Permit program, or a 45 percent rebate to be used on business expansion permit credits with the City’s Permit Center. Participation in this program can mean a significant return to your business. For more information, contact us.

2014 California Employment Hiring Credit

The employment hiring credit took effect on January 1st, 2014 and will be in effect through January 1st, 2021. There is a strict set of eligibility criteria that businesses need to consider when applying, which include, but are not limited to, the following:

  • A Business must be located within a Designated Geographic Area (DGA) in the SCV
  • The business must transact in a professional industry (e.g., manufacturing, biomedical, aerospace, technology sectors, among others)
  • The business must show a net increase in the number of jobs
  • Eligible employees must perform at least 50% of their services for the employer in the DGA
  • Eligible employees hired must receive wages that are at least 150% of the State minimum wage
  • Eligible employees must work for at least 35 hours per week or be salaried full-time employees

The hiring credit reimburses employers 35% of qualified wages between $12 and $28 per eligible employee. For example, if an eligible full-time employee earns $17 per hour, the qualified wages per hour are $5 (i.e., $17 - $12 = $5). If the employee works 2,000 hours during the taxable year, the qualified wages that are eligible for the tax credit are $10,000 (i.e., $5 * 2,000 hours). Participation in this program can mean a significant return to your business.

Click here for more detailed information what geographic areas are eligible for the 2014 California Employment Hiring Credit. For more information, contact us.

California Competes Tax Credit

The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. This tax credit is a negotiated credit, meaning the State, economic developers and private sector businesses will submit an application that critiques the costs and benefits of each business expansion. Specifically, tax credit agreements will be negotiated by GO-Biz and approved by a newly 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 from the Senate, and one appointee of the Assembly.

There will be an estimated 200 million of tax credits available per year to assist in creating and maintaining jobs in California. Importantly, 25 percent of tax credits will be reserved for small businesses. Applications for the California Competes Tax Credit can be submitted here. Please contact us to learn more about this program and to submit an application. 

Research and Development (R&D) Tax Credits

R&D tax credits are available to eligible SCV businesses at the state and federal level. Eligible firms are encouraged to precisely identify and track patents and inventions, as well as new or improved products, processes, techniques, formulas or computer software (collectively referred to as “business components”) considered to be eligible. Below is a brief questionnaire that may help SCV firms understand if they qualify for R&D tax credits.   

  • Is your business developing a new or improved business component for a permitted purpose?
  • Is your business uncertain of the methodology, capability and design that need to be completed when you take on a job?
  • Is the process of experimentation or systematic evaluation required for the work?
  • Is the work technological in nature and is the process of experimentation based on the principles of one or more hard sciences (e.g., physics, chemistry, biology, engineering, or computer science?)

If you answered yes to these questions, please contact the SCVEDC. Participation in this program can mean a significant financial return to your business. For more information, contact us.

Partial Sales Tax Exemption for Manufacturing and R&D Equipment

A new California sales tax exemption that is now in effect will generate significant savings for eligible businesses. California taxpayers engaged in manufacturing and certain types of research and development will pay a reduced State sales and use tax rate of 3.3125% on qualifying equipment purchases. The total sales tax to be paid on qualified property is 4.8125% (state + county sales tax) for SCV companies. California’s manufacturing sales tax exemption program is designed to encourage businesses to purchase new equipment for the purposes of job creation and economic growth.

If you pay the full amount of sales tax at the time of purchase, and later discover that you have met all of the qualifications, you may issue a partial exemption certificate along with supporting documentation to your retailer. The retailer may then file a claim for refund for the overpaid portion of sales and use tax on your behalf. If the transaction was subject to use tax, the purchaser may file a claim directly with the Board of Equalization. Participation in this program can mean a significant financial return to your business. For more information, contact us.  

California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA)

The CAEATFA is providing a sales and use tax exclusion (full rate, including local and district taxes) on qualifying property that is used in the design, manufacture, production, or assembly of “advanced transportation technologies or alternative energy source products, components, or systems,” or “clean technology”. The tax exemption takes place at the time of the qualified equipment purchase. Before one is able to make tax exempt purchases of clean-tech qualifying equipment, they must get their application approved by the CAEATFA.

To apply, applicants must pay an Application fee (.05% of value of all qualifying property submitted on application, $250 minimum and $10,000 maximum) and a non-refundable Administrative fee (.4% of the value of all purchased qualified property, minimum of $15,000 and maximum of $350,000, paid at the time of each semi-annual report where it is calculated based upon the semi-annual Qualified Purchase amount). Contact us for more details.

Film and Television Production Credit

To apply for the California Film and Television Incentive Program, a "qualified motion picture" must be one of the following:

  • Feature Films ($1 million minimum - $75 million maximum production budget)
  • Movies of the Week or Miniseries ($500,000 minimum production budget)
  • New television series licensed for original distribution on basic cable ($1 million minimum budget; one-half hour shows and other exclusions apply)
  • A television series, without regard to episode length, that filmed all of its prior seasons outside of California.
  • An "independent film" ($1 million total production budget - $10 million qualified expenditure budget that is produced by a company that is not publicly traded and that publicly traded companies do not own more that 25% of the producing company.)

There is $100 million available annually beginning fiscal year 2009/2010 through fiscal year 2016-2017. A minimum of $10 million of the annual funding is available for independent films each year. Please click here to learn more about the State of California and City of Santa Clarita Film and Television Production Credits. 

Employee Training & Workforce Development

SCV’s College of the Canyons Employee Training Institute (ETI) provides on site, customized training in most technical skills and business topics such as Print Reading, Lean Manufacturing, Six Sigma, Project Management, Geometric Dimensioning & Tolerancing (GD&T), Supervisory skills, Management and Leadership, and many others. The SCV’s Centers for Applied Competitive Technologies (CACT) works to advance the global competitiveness and innovation for advanced technology companies through responsive workforce training and technical consulting services. Please visit our Workforce Development webpage for more detailed information on the employment training programs you may be eligible to receive.

WorkSource Center

The Santa Clarita WorkSource Center works with local businesses offering a variety of services from pre-screening candidates to available interview facilities and tips for job seekers. All services at the WorkSource Center are offered to businesses and job seekers FREE of charge. Participation in these workforce development programs can mean a significant return to your business. The SCVEDC is happy to make a warm introduction with the each of the training programs listed above. To set up an appointment or for more information, contact us.

Is your business considering expansion opportunities in Southern California? We help companies relocate or expand their business in the Santa Clarita Valley. Our experienced staff ensures business relocation and expansion projects come in on time and on budget. Please contact us to learn more about doing business in the SCV.