Incentives
Incentive Zones Overview
Imperial Valley is one of the fastest growing counties in the State of California offering a vast number of business opportunities along with a large number of trade possibilities. There are several state and federal initiatives in the Imperial County that promote economic development through incentives to employers in the Imperial County. These incentives are available for qualifying existing and new businesses.
Enterprise Zones
An Enterprise Zone is a geographic area that is economically distressed and is targeted for economic revitalization. Enterprise Zones stimulate economic development by offering incentives to new and/or existing businesses that locate in these designated areas.
Imperial Valley currently has two Enterprise Zones:
1. Nearly all of Calexico (click for map)
2. Imperial Valley Enterprise Zone (within Brawley and Mesquite Lake specified plan area)
Enterprise Zones allow businesses located in these areas to save thousands of dollars through tax credits and other benefits. Tax credits and benefits to Imperial Valley’s two Enterprise Zones include:
-Hiring tax credit
-Sales or use tax credit
-Net operating loss carryover
-Business expense deductions
-Lender interest income deduction
For more Information please visit the Imperial Valley Enterprise Zone website
Imperial Valley Foreign Trade Zones
A foreign trade zone provides incentives for domestic manufactures that utilize imported raw materials and are located inside the designated areas of the foreign trade zone. These areas are considered outside the United States by U.S. Customs. Imported materials or merchandise imported into the zone are excluded from customs duty and excise taxes until they leave the foreign trade zone. Materials and goods exported outside the U.S. is excluded from being charged duty. Additional benefits include:
-Reduced tariffs
-Duty exemptions
-Duty elimination on waste, scrap, and yield loss
-Weekly Entry Fee savings
-Duty Deferral
Imperial County is the site of seven areas designated as Foreign Trade Zone #257
HUBZone
In order to stimulate job creation in underutilized business areas, The Small Business Administration introduced HUBZones. Small businesses operating within HUBZones receive federal contract preferences. The entire Imperial County qualifies as a HubZone.
Manufacturing Enhancement Area (MEA)
Manufacturing Enhancement Areas were created by the State of California to stimulate job creation in areas experiencing triple the State’s unemployment rate. The Cities of Calexico and Brawley are designated MEAs in California. MEAs benefits include:
-Streamlined local regulatory controls
-Reduced permitting fees
-MEA companies are eligible to earn $30,000 or more in state hiring tax credit per qualified employee hired over a five-year period.
New Markets Tax Credits
Program taxpayers who make equity investments in designated Community Development Entities (CDEs) may qualify for Federal income tax credits. These investments must then be used by the CDE to provide investments in low-income communities.
