Supportive Business Environment
We understand that by supporting businesses expanding in San José, we’re helping to strengthen the regions long term economic success. We’re committed to providing an integrated, solutions-based approach to business assistance that creates a foundation for entrepreneurs and companies to develop new ideas and foster economic opportunities for generations to come.
Through comprehensive facilitation services, forward-thinking policies, and creative incentives, San José is creating an environment in which established and emerging companies will be able to flourish.
- Business Cooperation Program - The Business Cooperation Program provides businesses a rebate of up to 30% on the local portion of the state collected use tax subsequently remitted to the City as a result of the business entering the state’s Use Tax Direct Pay Permit program or allocating use tax attributed to acquisition of construction materials in San José.
- Foreign Trade Zone - Companies using San José's Foreign Trade Zone are able to delay, reduce or eliminate customs duties on imported goods. Merchandise stored, manufactured or assembled within the zone area is considered to be international commerce.
- Industrial Development Bonds - Through the California Enterprise Development Authority, San José offers the Industrial Development Bond program to manufacturers. Eligible manufacturers can use the low cost bond proceeds to finance virtually all costs incurred by the company for investment in either tangible or intangible products. Find out more
Other Approved Incentive Programs for Businesses
- North San Jose Traffic Impact Fee Reduction - To promote near term industrial development, the North San Jose Area Development Policy was amended to reduce the traffic impact fee from $12 per square foot to $5 per square foot for qualifying industrial development projects. Projects in the North San Jose Area Development policy must be over 100,000 square feet and all permits and approvals are to be obtained before December 31, 2017.
- Downtown Commercial High Rise Incentive - To encourage a commercial high-rise development in downtown, Council approved a temporary reduction in construction related taxes for the first project over 150 feet.
- Construction Taxes Suspension - To foster tenant improvement and occupancy of Office and R&D space throughout San Jose, Construction taxes on tenant improvements were reduced from 4.5 percent of valuation to 1 percent of valuation.
State Incentive Programs
- California Competes Credit Program that allows businesses to compete for available tax credits based on number of jobs created/retained, the extent of poverty in a business development area, a minimum compensation limitation and a set job retention period. For more information please visit the State of California's website.
- Sales Tax Exemption on Advanced Manufacturing Equipment on first $200 million of Manufacturing or R&D equipment purchases from State share of sales tax (4.19%) beginning July 1, 2014 until June 30, 2022. For more information, please visit the State of California's Board of Equalization website.
- New Employment Tax Credit for businesses in census tracts with the 25% highest share of both unemployment and poverty in the State or former Enterprise Zone areas that hire long-term unemployed workers, veterans within 12-months of separation from service, people receiving Federal earned income tax credit, ex-offenders and recipients of CalWorks or general assistance. Hiring Credit will only be allowed to taxpayers who have a net increase in jobs, will be 35% of additional wages between $12-$28/hour for 5-years. For more information, please visit the State of California's Board of Equalization website.