Incentives for Development

Chowchilla is a dynamic community of almost 19,000 residents located at the intersection of two major highways. Highway 152 serves as the gateway to the Silicon Valley and Highway 99 links together the major cities within the San Joaquin Valley. At the center of this distribution network sits Chowchilla with 2,800 acres of land zoned for industrial and commercial development ready for building or occupancy. Having been established over one hundred years ago as an agricultural hub, Chowchilla retains its small town values while serving the needs of its residents, many of whom have relocated from Silicon Valley and other major cities.

Incentives have been designed to energize business and industrial development, accelerate growth in the downtown and create new jobs in the community, all to foster a growing economy. To learn more about the incentives and benefits to developers and business owners contact the Chowchilla Community and Economic Development Department at (559) 665-8615, ext. 787.

Chowchilla Business Incentives

  • Retail and Commercial Incentives
  • Waiver of building permit fees for Downtown construction projects.
  • Development impact fees deferred until a certificate of occupancy is issued.
  • Infill Program: Waiver of all development impact fees when building on a vacant lot located in Chowchilla, west of the Union Pacific Railroad tracks.
  • Impact Fee Waiver: Waiver of sewer and water development impact fees for commercial development.
  • Rebate of 50% of the City's sales tax for up to three years when occupying or expanding into a vacant building.

Industrial Incentives

  • Development impact fees deferred until a certificate of occupancy is issued.
  • Development impact fees will be reduced by $3,500 for every permanent local job created that meets the criteria of the program.
  • Development impact fees may be deferred and financed by the City for a period of up to ten years.  There are two methods for achieving this financing:  Chowchilla can apply 75% of the resulting increase in property tax collections from a new business toward the development impact fees; or Chowchilla can apply 50% of the resulting increase in sales tax collections from a new business toward the development impact fees.

Recycling Market Development Zone

The RMDZ Loan Program can also fund a maximum of 75% of costs directly attributed to an eligible project up to a maximum of $2 million, whichever is less.

  • One-stop permit' ting assistance
  • Waiver or reduction of development/permit fees
  • Revolving loan fund and installment payment of fees

California Incentives

Manufacturing Partial Sales Tax Exemption

A partial exemption of sales and use tax on certain manufacturing, biotechnology and research and development equipment purchases is available. The partial exemption applies only to the state sales and use tax rate portion, currently at 4.1875 percent. The exemption does not apply to any local, city, county, or district tax. All manufacturers (NAICS Codes 3111 -3399, inclusive), Research and Development in Biotechnology, and Research and Development in the Physical, Engineering, and Life Sciences (NAICS Codes 541711 and 541712, respectively).

New Employment Hiring Tax Credit (NEC)

The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January l, 2021, to a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee.

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. Unlike the Enterprise Zone Program, this program is statewide. Thus, there are no geographic restrictions. Tax credit agreements will be negotiated by GO-Biz and approved by the California Competes Tax Credit committee.

PG&E Economic Development Rate

Chowchilla is located in PG&E's Enhanced Rate Area, which qualifies for a 30% reduction on electric rates for five years.

Additional State Incentives

  • California Infrastructure and Economic Development Bank
  • Rural Economic Development Infrastructure Program (REDIP) (Grants & Loans)
  • Valley Small Business Development Corporation (VSBDC) (State Loan Guarantee Program and a wide variety of other loan programs)
  • Taxable Industrial Revenue Development Bonds (as allowed by State and Federal law)

Federal Incentives

  • Economic Development Administration (Grants & Loans)
  • U.S. Department of Housing and Urban Development (Grants & Loans)
  • Small Business Administration (7a Loan Guarantee Program) administered by Valley Small Business Development Corporation
  • CEN-CAL Financial Group (540 Loan Program and Micro-Revolving Loan Program)
  • USDA (Grants & Loans)

Federal Opportunity Zone

This federal program provides tax benefits to significant portions of Chowchilla's industrial park by reducing capital gains taxes based on the length of investment, and a deferment on taxes owed.

City incentive programs are time-limited with the potential to expire unless extended. This footnote applies to the categories of "Retail and Commercial Incentives" and "Industrial Incentives".