Financial Incentives and Other Information

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Downtown Stockton is an Opportunity Zone!

Opportunity Zone benefits include:

  1. Temporary deferral: An investor can defer capital gains taxes until 2026 by putting and keeping unrealized gains in an Opportunity Fund.
  2. A reduction: The original amount of capital gains on which an investor has to pay deferred taxes is reduced by 10% if the Opportunity Fund investment is held for 5 years and another 5% if held for 7 years, for a total of 15%.
  3. An exemption: Any capital gains on investments made through an Opportunity Fund accrue tax-free as long as the investor holds them for at least 10 years. For investments maintained longer than 10 years and upon a sale or disposition of the investment, the investor is allowed to elect the basis in the investment to quality to the fair market value of the investment.

Access the City of Stockton’s Opportunity Zone portal.

Building trees

This incentive offers forgiveness for certain liens imposed by the City “for the public purpose of facilitating substantial investment, improvements and blight abatement to eligible properties.”

Eligible applicants/properties must meet the following criteria:

  • Commercial use designation
  • Liens over $5,000
  • Must have a letter verifying financial need
  • Property improvements “must further objectives in the Economic Development Strategic Plan, Urban Land Institute Report, Council goals, or other related City plans as well as bring site into compliance.”
  • Improvements must “have significant effect on the neighborhood and encourage additional investment.”
  • Applicant “must demonstrate ability to undertake and complete improvements.”
  • Applicant must not have “caused, maintained, or allowed the violations, fines, fees or liens at the subject property.”
Buildings sidewalk

Before beginning any new construction, rehabilitation, renovation, conversion, or other project, investors should schedule a meeting with the City of Stockton’s Economic Review Committee, which is made up of representatives from various City departments, such as building, planning, fire, etc.

The Economic Review Committee allows each of the City representatives to comment on the project and to provide answers to questions about topics
such as: zoning, use permits, and public improvements. It provides investors with a good sense of what is necessary to smoothly navigate through the permitting and development process in the City of Stockton.

The City offers a Façade Improvement Forgivable Loan to enhance the exterior of commercial, nonresidential properties (including nonprofit groups) located within Downtown, South Stockton, North Stockton, and Midtown.

Application fee: $525

The City of Stockton also has a Short-term Non-residential Public Facilities Fee and Mitigation Fee Deferral Program, which provides short-term relief from upfront development costs, specifically impact fees, until construction has been completed and the building is ready to occupy.

The City of Stockton has a fee deferral program for commercial and industrial buildings.

There is a 5-year program and a 10-year program.

SJC has created a Comprehensive Economic Development Strategy for 2019 – 2024.

Here is the Economic Development Strategic Plan, outlining the vision and plan of the City of Stockton’s Economic Development Department.

The City of Stockton has a Broken Window Grant Program through which business owners can apply for the reimbursement costs of up to $800 per broken window repair.

Want to learn more about converting your office building to live/work space?