Business Incentives

Business Incentives:

Located in Fresno County just 40 miles west of Fresno, and 20 miles from I-5, Mendota is a perfect location for companies seeking a central location in California.  Easily accessible and containing ample amenities, Mendota is conducive to a thriving business environment.  There are many economical business tax incentives to offer.

Mendota Economic Incentive Zone

The Mendota Economic Incentive Zone (EIZ) was created to provide incentives to businesses that are located within the City’s main business corridors who are looking to establish or expand.

Some incentives include:
More Flexible Development Standards
Development standard exemptions for minor expansion (less than 35% of the current gross floor area), interior and exterior remodeling, and CEQA-exempt projects.

Expedited Permit Processing
Reductions in mandated time frames for City staff to respond to applicants in order to expedite qualifying projects.

Reduction of Fees
Depending on the project, a reduction of:
– Development Impact Fees (anywhere from a 50% to 100% reduction)
– Planning application fees (50%)
– Building Permit fees (25%-100%)

Incentives for Projects with Significant Positive Impact
The City Council is able to provide additional incentives to applicants whose projects demonstrate exceptional benefits to the public.

For more information, contact Cristian Gonzalez at (559) 860-8882 or cristian@cityofmendota.com

To view which properties are located within the EIZ, please click here.

The Fresno County Regional Enterprise Zone

The EZ Tax Credit was established by the State of California to provide businesses the opportunity to create additional jobs, access more resources, and increase overall profitability through tax savings. The tax credit can save employers up to $36,600 per qualified employee. Incredibly, fewer than 15% of qualified businesses know about, much less take advantage of, this tremendous incentive. The EZ tax credit can significantly add to your company’s bottom line, making it a smart way to grow your business!

Other features of the Enterprise Zone Credits:
• Sales & Use Tax Credit • Net Operating Loss Carryover
• Business Expense Deduction • Net Interest Deduction for Lenders

You are eligible to capture the tax credit by virtue of your location, regardless of business type, the number of people you employ, or your years of operation. Visit the Fresno Regional Enterprise Zone Website: Click here

Historically Underutilized Business Zone

The HUBZone is administered by the U.S. Small Business Administration (SBA) and was designed to stimulate economic development and create jobs in urban and rural communities by providing Federal contracting preferences to small businesses. The HUBZone applies to qualified small businesses (by SBA standards) located within the zone’s boundaries with at least 35% of their employees residing in a HUBZone. Visit the City of Fresno HUBZone page: Click here

Foreign-Trade Zone

A U.S. Foreign-Trade Zone (FTZ or Zone) is a designated area which, for Customs purposes, is considered outside the U.S. Nearly any imported merchandise can be brought into a Zone for almost any kind of manipulation, duty-free. If you are not currently located within the FTZ, a sub-zone can be created virtually anywhere in Fresno County to include your company’s facilities.

Visit the International Trade Administration- Foreign Trade Zone Homepage: Click here
City of Fresno Foreign Trade Zone Page: Click here

New Market Tax Credit

Companies who invest in projects that qualify as Community Development Agencies get 39% of them project’s cost returned in the form of tax savings spread out over 7 years. Visit the NMTC page on the U.S. Treasury Website: Click here

Work-Opportunity Tax Credit

Tax credit for $2,400 (and potentially $9,000) for hiring workers who fall under certain categories, such as residents of empowerment zones or renewal communities; food stamp recipients between 18 and 39 years old; disabled veterans and more.
Visit the Work-Opportunity Tax Credit Page: Click here

The Federal Research and Development Tax Credit

A Federal tax credit equal to 20% of the amount by which qualified research expenditures for a taxable year exceeds its base amount for that year, or for basic research payments. To get more information on the Federal R&D Tax Credit: Click here

State Research & Development Tax Credit

The California R&D Credit reduces income or franchise tax. Businesses who paid or incurred qualified research expenses while conducting qualified research in California may receive 15 percent of the excess of current year research expenditures over a computed base amount (minimum of 50 percent of current year research expenses).

More information about the R&D Tax Credit: Click here

On-the-Job Training

The reimbursement is equal to 50% of average wages for eligible employees during a training period of up to six months.
Visit the Fresno Regional Workforce Investment Board for more information: Click here

Industrial Development Bonds

For companies looking to raise $2,000,000+ to build or expand manufacturing facilities, industrial development bonds offer a way to raise money in the tax-exempt marketplace, thereby obtaining a lower interest rate. Visit the Industrial Development Bonds Page on the I-Bank Website: Click here

Recovery Zone Bonds

Similar to Industrial Development Bonds, but not as limited in project scope, IDBs represent another way for private companies to access the tax-exempt market. Visit the Recovery Zone Bonds Page on the I-Bank Website: Click here

California Capital Access Program

The California Capital Access Program (CalCAP) encourages banks and other financial institutions to make loans to small businesses that fall just outside of most banks’ conventional underwriting standards. CalCAP is a form of loan portfolio insurance which may provide up to 100% coverage on certain loan defaults. By participating in CalCAP, lenders have available to them a proven financing mechanism to meet the financing needs of California’s small businesses.  The California Capital Access Program (CalCAP) encourages banks and other financial institutions to make loans to small businesses that fall just outside of most banks’ conventional underwriting standards.
CA State Treasurer’s Office – CalCAP: Click here

Recycling Market Development Zone

Incentives include one-stop permitting assistance, waiver or reduction of development/permit fees, a database on land, buildings, markets, and feedstock, a micro revolving loan fund, and installment payment of fees. 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. This benefit is available to companies in Fresno County who recycle materials which would otherwise be sent to landfills.
Visit the Fresno County RMDZ page on the CalRecycle Website: Click here

Clean Energy Business Financing

2.75%-interest loans available to California businesses that reduce California energy use, increase renewable energy generation, and create and/or retain California jobs. Visit the California Energy Commission’s Website: Click here

New Businesses:

If you are interested in starting a business in the City of Mendota, please contact City Hall at (559) 655-3291 for more information about starting a business in the City of Mendota.


Please note that in order to conduct business with the City, or within City limits, businesses are required to obtain a business license from the City of Mendota. The application can be downloaded from the Forms and Applications page under the Forms and Documents menu.