Incentive Programs

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Local Incentive Programs

To encourage the development of new businesses and the expansion of existing businesses, the City of Elk Grove provides the following programs. We established these incentive programs to enhance the City’s competitiveness in attracting and facilitating the growth of businesses, in order to help put Elk Grove on the map as a location of choice in Northern California. Our economic development team can provide you with tools and resources, in addition to the programs listed here, to put your business on the map here in Elk Grove.

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Brewery & Winery Incentive & Assistance Program

The City of Elk Grove Brewery & Winery Assistance Program provides technical and financial assistance to wineries and breweries that locate to or expand in Elk Grove. The program provides grants and financing, site selection assistance and expedited permits and approvals.

Additional details:

  • $5,000 incentive grants are available to most operators of newly established breweries and wineries through our Economic Development Incentive Program.
  • These funds are intended to defray the cost of obtaining City Planning and Building permits.
  • No City Council or Planning Commission approvals are required for nearly all brewery or winery projects.

    Click here for a fact sheet about this program.

Small Business Loan Program

The City of Elk Grove has established a Small Business Loan Program designed to stimulate economic growth and create jobs that will improve the living conditions of residents in the community. The Program provides affordable, non‐conventional financing to eligible businesses and development projects that are not able to receive sufficient funding elsewhere.

Specific Details:
  • The business must be located within the incorporated City limits of Elk Grove, California.
  • Loan amounts may vary from $3,000 to $25,000.
  • Funds may be used for several purposes, including payment of license and permit fees and purchase of manufacturing equipment.
Click here for a fact sheet about this program.

Economic Development Incentive Program

The City of Elk Grove offers economic development incentives to new or existing businesses that contribute to the economic base in at least one of the following ways:
  • Create new high-quality jobs (at least 75% of median income);
  • Generate at least $5,000 in NEW annual sales tax revenue or Transient Occupancy Tax revenue;
  • Physically locate or relocate within an existing vacant building in the City’s Target Area.
  • Fall within one or more of the City’s targeted industry sectors.
Click here for a fact sheet about this program.

Sewer Fee Credit Program

The City of Elk Grove, with assistance from the Sacramento Regional County Sanitation District (SRCSD), administers the Sewer Fee Credit Program. The program provides economic incentives for industrial and commercial sewer customers by offering sewer development impact fee grants.

Specific Details:

  • In order to qualify, the project must create additional employment and be consistent with the City’s General Plan. The project should create 2 jobs for every Credit used (example 3.24 credits – 6 jobs).
  • The Credits remain with the parcel they are initially applied to.
  • Projects requesting 15 credits or less will be processed by staff while those projects requesting over 15 credits will be forwarded to City Council for consideration.

Resources

Development Impact Fee Deferral Program

The following fees are eligible for a deferral under the terms and conditions of this program:
  • Capital Facilities Fee;
  • Affordable Housing Fee;
  • Citywide Roadway Fee; and;
  • Citywide Fire Fee
Click here for more details about this program.

State and Federal Office Incentive Program

The City of Elk Grove currently has more than 24,000 California State employees living within its boundaries. To reduce commute times for these employees (and thereby reduce carbon emissions) and to create more jobs locally, the City has created a program that provides incentives specifically for State and Federal departments and agencies.

Specific Details:
  • All eligible office buildings shall be for either a lease, lease with the option to purchase, construction, or purchase of a state or federal building for a minimum of four years.
  • The City Manager, or his/her designee, shall have the authority to negotiate the amount of the incentive. 
  • Specific uses for the funding include building tenant improvements (TI), furniture, fixture and equipment (FF&E), and relocation.
Click here for a fact sheet about this program.

Economic Development Project Review Team (EDPRT) Program

In fulfillment of the City Council’s clear goal of improving the City's jobs/ housing balance and strengthening its economic base, the Development Services Department has created the Economic Development Project Review Team (EDPRT) Program. EDPRT provides enhanced customer service to projects with an economic development benefit by streamlining the review process, providing a dedicated single-point of contact within every department, and expedited reviews wherever possible.


Specific Details:
  • An "Economic Development Project" is any non-residential development project that must meet one of several criteria, such as the creation of 50 new permanent full time jobs within the City or generates at least $50,000 in new annual sales tax.
  • A successful process for EDPRT projects will provide the applicant with guaranteed timelines, pinpointed troubleshooting to solve any possible problems, as well as specific points of contact through the entitlement and plan review phases.

California Statewide Incentive Programs

In July 2013, Governor Edmund G. Brown Jr. signed two new bills (AB 93 and SB 90), which establish the Governor’s Economic Development Initiative (GEDI).  The programs applicable in Elk Grove are:

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California Competes Tax Credit:

This program provides the opportunity for California businesses to compete for available income tax credits based on the number of jobs to be created and retained, wages paid in those jobs and other factors. For more information, please visit the Governor’s Office of Business and Economic Development. CA State Board of Equalization’s website.

Statewide Community Infrastructure Program (SCIP)

SCIP can be used for residential and non-residential projects such as housing developments, retail, commercial, office, and industrial projects. For questions relating to SCIP, contact Andrew Keys in the City Finance Department at(916) 478-2273 or email to akeys@elkgrovecity.org.

Click here for more information.

Small Business Loan Guarantee Program:

The California Small Business Loan Guarantee Program (SBLGP) encourages investment into low- to moderate-income communities by providing loans to small businesses that create and retain jobs. For more information, please visit the Governor’s Office of Business and Economic Development.

Sales and Use Tax Exclusion Program:

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides a sales and use tax exclusion for advanced manufacturers and manufacturers of alternative source and advanced transportation products, components or systems. For more information and application materials, please visit CAEATFA.

Sales Tax Exemption:

A statewide sales tax exemption on all manufacturing equipment and research and development equipment purchases is available for biotech and manufacturing companies. For additional information, please visit the Board of Equalization.

New Employment Hiring Tax Credit (NEC):

A tax credit is available to a qualified taxpayer that hires a qualified full-time employee and pays or incurs wages attributable to work performed by the full-time employee in a designated census tract or economic development area. For additional information, please visit the Franchise Tax Board.

California Research & Development Tax Credit:

Corporate income tax credits are available to companies that have incurred qualified research expenses in California. The taxpayer may receive up to 15 percent of the excess of current year research expenditures over a computed base amount. For more information, please visit the Franchise Tax Board.

Industrial Development Revenue Bond Program:

A competitive financing option available is available for the acquisition of manufacturing facilities and equipment, allowing manufacturers to access private capital markets at tax-exempt rates. For additional information, please visit the California Infrastructure and Economic Development Bank.

Beverage Container Recycling Grants:

The California Department of Resources Recycling and Recovery (CalRecycle) administers funding programs to assist organizations with establishing convenient beverage container recycling and litter abatement projects. For more information, please visit CalRecycle.