GOVERNMENT

Businesses operating in Solano County generally follow California’s statewide tax structure, along with local city business license requirements and applicable district sales tax rates.

Typical tax categories may include:

• Corporate Franchise Tax: California corporations are generally subject to state franchise tax obligations.
• Sales and Use Tax: Rates vary by location and may include state, local, and district taxes depending on the city.
• Property Tax: Commercial and industrial property taxes are generally based on assessed value under California law.
• Payroll-Related Taxes: Employers may be responsible for unemployment insurance, employment training tax, and payroll withholding requirements.
• Business Licenses and Permits: Cities may require local business licenses, permits, or other approvals depending on the activity.

Because tax obligations can vary by business structure, location, and industry, Solano EDC can help connect businesses with the appropriate city, county, and state resources.

Helpful State Resources:
California Department of Tax and Fee Administration (CDTFA)
Franchise Tax Board (FTB)
Employment Development Department (EDD)

California offers several programs that may help eligible businesses reduce costs, support hiring, encourage investment, and strengthen long-term competitiveness.

Examples of tax credit and cost-saving opportunities include:

• California Competes Tax Credit: A statewide income tax credit program designed to support businesses that want to grow, stay, or locate in California.
• Research & Development Credits: Businesses involved in product development, software, engineering, manufacturing, or technical innovation may benefit from available R&D-related tax treatment.
• Employment-Related Credits: Certain hiring programs and workforce incentives may apply depending on employee type, location, and program eligibility.
• Energy and Utility Incentives: Businesses may also qualify for utility savings, efficiency rebates, or energy-related incentive programs through local and regional partners.
• Training and Workforce Support: Some programs can help offset costs tied to employee training, upskilling, and workforce development.

Incentive availability and eligibility can change over time. Solano EDC can help businesses identify the right contacts and connect with programs that align with their project, industry, or expansion goals.

Helpful Starting Point:
Governor’s Office of Business and Economic Development (GO-Biz)
California Competes Tax Credit Program
Local utility and workforce partners