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.


State of California – Business Investment Guide serves as a reference document to highlight California’s strategic business advantages, new state-sponsored initiatives, incentives, as well as existing technical and financial assistance programs currently in effect as of the publication date posted on the front cover. 

Visit www.business.ca.gov to view the most recent version of the State of California Business Investment Guide.

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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. 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.

For more information and application documents, visit www.business.ca.gov/Programs/CaliforniaCompetesTaxCredit.

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San Diego/Imperial Valley Recycling Market Development Zone (RMDZ)
Program Overview

The goal of this program is to increase diversion of non-hazardous solid waste away from California landfills and to promote market demand for secondary and postconsumer materials.

The Recycling Market Development Zone (RMDZ) program provides economic incentives and technical services to businesses that divert waste from California’s landfills while adding jobs and revenues to the local economy.

This program is a partnership among local businesses, local zone administrators, and state and local agencies. Hundreds of companies that manufacture goods made from recycled materials, such as plastic, glass, paper, wood, organics, tires, and construction debris, use these services. Some companies have benefited from a business loan, while others have taken advantage of the free technical assistance and/or product exposure opportunities through the RecycleStore.com website.

By tapping into the resources offered through the RMDZ program, you can help conserve resources and increase your bottom line at the same time.

We are Here to Help
CalRecycle, the agency responsible for managing California’s solid waste stream and The Southern California Boarder Region Recycling Market Development Zone can help you identify new markets for recycled content products, help recycling-based businesses, and provide public education and outreach programs, to divert waste from disposal to higher and better use.

Program Benefits
Business loans
Creative partnerships
Free advertising
Permitting assistance

For more information, visit socalrmdz.com or contact Sean Wilcock at sean@ivedc.com or (760) 353-8332.

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Imperial Valley Foreign Trade Zone #257
A foreign trade zone provides incentives for domestic manufacturers 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. are excluded from being charged duty. Additional benefits include:

-Relief from inverted tariffs
-Duty exemption on re-exports
-Duty elimination on waste, scrap and yield loss
-Weekly Entry savings
-Duty Deferral

For more information, contact:

Imperial Valley Economic Development Corporation

Sean Wilcock, VP of Business Development

E-mail: sean@ivedc.com

Phone: (760) 353-8332

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HUBZone
The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas.

Benefits of the HUBZone Program
The program’s benefits for HUBZone-certified companies include:

-Competitive and sole source contracting
-10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities

The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified small business concerns.

How Does the HUBZone Program Work?
The SBA regulates and implements the HUBZone Program. The SBA does the following:

-Determines which businesses are eligible to receive HUBZone contracts
-Maintains a listing of qualified HUBZone small businesses that federal agencies can use to locate vendors
-Adjudicates protests of eligibility to receive HUBZone contracts
-Reports to the Congress on the program's impact on employment and investment in HUBZone areas

In order to qualify for the HUBZone program, your business must be located in an area designated as a HUBZone.
You may determine if an address or a particular area is designated as a HUBZone by using the HUBZone Maps.  For eligibility requirements and more information, please visit www.sba.gov/content/hubzone.

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New Markets Tax Credits
The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period.

For more information, visit www.cdfifund.gov/programs-training/Programs/new-markets-tax-credit/Pages/default.aspx.

Click here for online mapping tool.

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