Doing business
Operating costs & incentives
The Greater Sacramento region offers the productivity and talent advantages of a California location at a better value than coastal markets. We partner with state and local governments, utilities and other organizations to incentivize and accelerate investment.
California’s business tax advantages
California’s ranking among U.S. states for favorable business tax policies:
#2
shared services centers
#6
technology centers
#8
research and development
Source: KPMG, Tax Foundation, 2021
California programs and policies that lower business taxes:
- Research and development tax credits
- Full and partial sales tax exemption for manufacturing & R&D equipment
- 1% property tax
- Employment training
- State bond programs
- Low unemployment insurance
- 100% sales factor with market-based sourcing
- California Energy Commission grants for R&D
California Competes Tax Credit
The California Competes Tax Credit (CalCompetes) is an income tax credit for businesses looking to move, stay or grow in California. Businesses of any industry, size or location are eligible to apply. GSEC offers complimentary guidance on the program to companies looking to expand in or relocate to the Greater Sacramento region.
Business costs in Greater Sacramento compared to other U.S. cities
Annual business operating costs
Source: MetroComp October, 2023
Local incentives
Partnering to ensure a seamless market entry
The local governments in the Greater Sacramento region offer a range of incentives, including fee deferrals, expedited permitting and more. Below is a snapshot of incentive programs in the region. Contact our team to for more details and to learn about other incentives your company may be eligible for.
City of Elk Grove economic development incentive program
$200,000 set aside annually for companies within the City’s target industries that have 20 or more high-wage employees. Certain exceptions and preferences apply.
Placer County help to hire subsidized wage
$10,500 available per employee who meet the below criteria (dependent on County funds):
- Placer County resident
- Enrolled in the County’s Employment Services
- Not related to any County administrator
City of Rancho Cordova job and talent attraction incentive
$10,000 per new job with wages over $100,000 (maximum $100,000/company) for companies within the City’s target industries that have 20 or more high-wage employees. Additional criteria apply. Terms are discretionary and negotiated as part of an agreement.
City of Sacramento Job Growth and employment incentive strategy
Available to companies driving significant employment in the City’s target industries. Funds dependent on City’s budget allocation and market conditions.
Bosch
Sepion Technologies
Clutch
Centene Corporation
Mary Ann’s Baking Co.
Learn more
Contact our team to learn more about other state, local and utility incentives that your company may be eligible for.
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