Site Selection Assistance | Business Assistance Programs | 2005 Expansion/Relocation Projects 

Site Selection Assistance
CCEDC provides businesses with the resources necessary when undertaking a site location or expansion in the Central California region. CCEDC facilitates the site selection process by –

• Providing access to resources and people in economic development, financial, government, regulatory and real estate,
• Supplying the research and data necessary to make decisions,
• Conducting site searches and site tours,
• Facilitating planning and consultation meetings,

CCEDC’s assistance and services are always conducted privately and confidentially. Call 888-998-2345.

Business Assistance Programs

Central California’s business friendly environment is demonstrated by local governments’ pro-business commitment. You’ll find a variety of incentives, short permit processes and substantially lower development fees. Companies can often roll through the permit process and have their facilities up and operating in as little as six months.

Enterprise Zone

Each Central California county offers at least one enterprise zone, where benefits include a six percent tax credit on equipment and a tax credit of up to $31,574 per qualified employee over a five-year period. Enterprise zone benefits are available in the following communities: Bakersfield, Delano, Fresno, Hanford, Lemoore, Corcoran, Lindsay, Madera, Merced/Atwater, Porterville and Shafter.

Business Incentive Zone

The state’s only Business Incentive Zone is located in the Central California county of Tulare. The zone includes all incorporated cities and five unincorporated areas. The Business Incentive Zone offers the same benefits as an enterprise zone, but deems all employees who live within the zone as “qualified employees.”

Foreign Trade Zone

A U.S. Foreign-Trade Zone (FTZ) is a designated area that, for Customs purposes, is considered outside the U.S. Nearly any imported merchandise can be brought into an FTZ for almost any kind of manipulation duty-free. Through utilization of a FTZ, imported material avoids any Customs duties under the following scenarios:

         • Any previously-imported material re-exported.
         • Rejected, scrapped, destroyed, waste, or returned-to-vendor material.
         • Sales to companies operating in other U.S. FTZs. (There are nearly 3,200 companies utilizing FTZs and over            400 manufacturing Subzones)

Designated Foreign Trade Zones include:

         •  Mid State 99, Visalia (sub-zone of Merced County)
         •  U.S. Cold Storage, Tulare
         •  International Trade and Transportation Center, Shafter
         •  Fresno

Sample Manufacturing Case Calculation of Estimated Savings                Year 1

A. Duty Savings as a Result of Re-exports*............................................... $99,000
(annual cost, dutiable imports) X (% re-exported) X (weighted average duty rate) X (100% if no drawback in place,
FTZ differential if drawback)

B. Duty Savings on Reject or Scrap: Military Sales.................................... 12,060
(annual cost, dutiable imports) X (% reject or scrap + % sold to military ) X (weighted average duty rate)
NOTE: re-exports + rejects + military sales = tariff eliminated (TE)

C. One-Time Benefit: “Long-term Duty Deferral”...................................... 231,990
[annual cost, dutiable imports X (1 - TE) ÷ inventory turns per year] X (weighted average duty rate)

D. Savings from Ongoing Duty Deferral....................................................... 16,239
[annual cost, dutiable imports X (1 - TE) X (weighted average duty rate) X (opportunity cost of capital)

E. Savings from Inverted Tariffs................................................................... 340,252
[value of raw material/components subject to inversion X (1 - TE) ] X (affected raw material duty rate - inverted duty rate)

F. Merchandise Processing Fee (MPF) Savings under Weekly Entry Process 79,780
(average MPF per entry X entries per year) - (52 weekly entries per year X $485 maximum MPF per entry)

*NOTE: Export benefits to Canada and/or Mexico subject to applicable free trade agreements.
This is a preliminary analysis that is only as accurate as the assumptions used to generate the following results. This analysis should not be relied upon until the assumptions, calculations and results contained herein have been verified.

Hiring and Job Training Assistance

The Workforce Investment Board and related agencies can assist with a variety of services for companies moving to Central California. Prior to the company’s location, employee recruitment and screening can be delivered as well as scheduling and providing office space for interviews.  Job training programs are available through technical schools, universities and colleges as well as the Workforce Investment Board in each county.
The programs include:

•  Employment Training Panel (ETP) – Job Training Funding Program

   This program was created and designed to fund training that meet the needs of employers and helps companies maintain their competitive edge. The amount of funding varies depending on the type and amount of training provided to employees. Average funding amounts range from $1,200 to $3,000 for each employee.

•  On-The-Job Training Reimbursements (OJT)

   The on-the-job training program can assist employers in cost savings of up to 50% of employee’s wages during an initial training period of up to 12-weeks through reimbursements. An example of these savings is for 10 employees receiving $10.00 per hour x ½ reimbursement = $24,000. These training reimbursements can add up to substantial savings for a company over an extended period.

PG&E Economic Development Incentive Rate

In order to promote business retention, job creation, and economic growth in northern and central California, Pacific Gas and Electric Company offers an enhanced rate to attract certain types of large businesses locating to state-designated Enterprise Zones and Recycling Market Development Zones.  

Key features of the incentive rate include:

• Available everywhere in PG&E’s service territory.
• Applies to business retention, expansion and attraction projects that have location options outside of California.
• Customers would receive an incentive by way of a five-year declining reduction on their otherwise applicable bill according to the following schedule:

• 25% first year
• 20% second year
• 15% third year         
• 10% fourth year
• 5% fifth year

• Eligibility would be independently approved by the Office of California Business Investment Services in consultation with PG&E.
• To be eligible for the rate incentive, businesses must also consider the terms of the incentive rate to be a material factor in their decision to locate or remain in California.
• Available to commercial and industrial customers with at least 200 kW of demand.
• Structured to allow the same incentive to customers regardless of their choice of generation provider (i.e. Direct Access or future Community Choice Aggregation customers).

Recent Projects

NC = New Construction                      Note: this list represents highlights, not all inclusive.