INCENTIVES

There are a number of local and state incentive programs that may help your business. Our staff can assist in determining your project impact fees and eligibility for incentives. Please contact us to schedule an appointment for assistance.

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City of Gilroy Jobs Offset Program

Industrial businesses that generate new jobs may be eligible for a jobs offset incentive. In order to qualify, the business must create at least 25 permanent full-time jobs within two (2) years of the opening of the new business. A credit of up to $4,000 per job may be granted for each job that has any combination of annual salary and benefits of at least $45,000. See program details for more information.

City of Gilroy Tax Offset Program

Commercial or industrial businesses that generate new sales taxes or new Transient Occupancy Tax (TOT) may be eligible for a tax offset against development impact fees.

Single Businesses
In the case of sales tax, the business must generate at least $50,000 in sales tax revenue to the City annually. The total offset may be accumulated for a period not to exceed three (3) years. See program details for more information.

Commercial or Industrial Centers
In the case of sales tax, a single center comprised of multi-tenant businesses may qualify for the incentive if it collectively generates an average of at least $50,001 in sales tax revenue to the City annually. See program details for more information.

Multi-tenant/Owner Industrial Developments
Developers of multi-tenant/owner industrial buildings may be eligible for a job-offset credit if the businesses that will ultimately occupy the multi-tenant/owner building employ a cumulative total of at least 25 permanent employees that meet the minimum wage and benefit requirements stated above. See program details for more information.

California Investment Guide

Visit the California State incentives guide here.




Gilroy is a perfect fit for the following types of industries:
• Solar and Alternative Energy
• Food Processing & Agriculture
• Small to medium Specialty
Manufacturing Firms
• Professional, Finance and
Business Services
• Health Care and associated
businesses
• Computers, Electronics,
Digital Media Services and
Manufacturing Suppliers
• Small Bioscience and
associated R&D
• Genetic Seed Companies
and Suppliers to
Biotechnology Companies
• Environmental Technologies
and Green Suppliers
• Transportation & Trucking

The minimum employment level must be met within two (2) years of the issuance of the first certificate of occupancy for the first building. The minimum 25 permanent employees that meet the wage and benefit package must be maintained for a minimum of three (3) consecutive years following the initial attainment of the guaranteed employment level.
The amount of sales tax generated by the multi-tenant center must: (1) exceed $50,000 annually when averaged over a three year period, and (2) be equal to an amount of $2.00 or more per gross square foot of the multi-tenant center building area in excess of 25,000 square feet. The total offset may be accumulated for a period not to exceed three (3) years. The three-year period will commence one year from the issuance of the first certificate of occupancy to occupy a space at the center. The tax offset must be applied against the development fees due for the project, and may not exceed the amount of development fees plus interest thereon due from the commercial/industrial center.
The number of jobs created and the salary and benefit package minimums must be met for three consecutive years following the initial attainment of the guaranteed employment level. The credit must be applied against the development fees due for the project, and may not exceed the amount of the development fees due from the new business. If the salary and benefit package minimums are not met or are not maintained for three (3) consecutive years following the initial attainment of the guaranteed employment level, the business shall pay to the City the amount of the credit per job multiplied by the number of jobs by which the business falls short, plus interest at the highest yield rate in the City's investment portfolio.
The three-year period will commence upon the issuance of the certificate of occupancy for the business. The tax offset must be applied against the development fees due for the project, and may not exceed the amount of development fees plus interest thereon due from the new business.