Other Incentives & Financing Resources
New Markets Tax Credit (NMTC)
The New Markets Tax Credit (NMTC) incentivizes community development and economic growth through the use of tax credits that attract private investment to distressed communities. Click here to search for CDEs that may have available NMTC allocation authority remaining. To view search for a qualifying census tract in Napa, please click here.
Affordable Housing Development in Napa
The City of Napa's Housing Authority works with housing developers to help create viable and innovative solutions needed to provide affordable housing. The Housing Authority assists both non-profit housing developers and for-profit developers, to obtain funding for affordable housing developments.
The Low Income Housing Tax Credit (LIHTC)
The LIHTC is an indirect federal subsidy that finances low-income housing. The California Tax Credit Allocation Committee (TCAC) facilitates the investment of private capital into the development of affordable rental housing for low-income Californians. TCAC allocates federal and state tax credits to the developers of these projects in exchange for the tax credits. TCAC verifies that the developers have met all the requirements of the program and ensures the continued affordability and habitability of the developments for the succeeding 55 years. Attend a tax credit workshop or learn more about the application process.
Historic Preservation Tax Credits
Mills Act Property Tax Abatement Program
A developer, who owns or purchases a historic building in Napa may qualify for property tax relief if they pledge to rehabilitate and maintain the historical and architectural character of their properties for at least a 10-year period. In order for a property to be eligible, it must be listed on the National Register of Historic Places, be listed on the California Register of Historic Places, or be listed on a local inventory. The Mills Act Program is especially beneficial for recent buyers of historic properties and for current owners of historic buildings who have made major improvements to their properties. The City of Napa participates in The Mills Act and the Planning Division administers all Mills Act Applications.
National Register of Historic Places Tax Credits
A developer who holds title to a historic eligible property may take advantage of a 20% tax credit by investing in historic preservation/restoration work. Properties listed on the National Register of Historic Places are potentially eligible for direct income tax credits if the the following factors are met:
- The historic building must be listed in the National Register of Historic Places or be certified as contributing to the significance of a "registered historic district;"
- The project must meet the "substantial rehabilitation test" (i.e., the cost of rehabilitation must exceed the pre-rehabilitation cost of the building);
- The rehabilitation work must be done according to the Secretary of the Interior's Standards for Rehabilitation; and
- After rehabilitation, the historic building must be used for an income-producing purpose for at least five years.
Owner-occupied residential properties do not qualify for the federal rehabilitation tax credit. Properties must be currently listed, in process of nomination or successfully nominated upon completion of the work in order to be eligible. Learn More>>
PG&E Programs for New Construction
PG&E's Savings By Design (SBD) program provides solutions and educational resources to building designers and owners. The SBD program offers program participants the chance to earn financial incentives for exceeding California Title 24 energy-efficiency standards. Owners, architects, designers, engineers, contractors, or other project representatives are welcome to contact PG&E to learn more.
The Zero Net Energy (ZNE) program focuses on achieving maximum energy efficiency and load reduction by leveraging advanced design, construction and building operations before the addition of on-site renewable energy generation, such as photovoltaic (PV) panels. ZNE activities continue through a portfolio of research, development and demonstration (RD&D) projects around ZNE buildings, together with complementary education, outreach and info activities.
The California Advanced Homes Program (CAHP), the California Multifamily New Homes Program, and the CAHP Master Builder initiative support residential builders as they take steps towards this big goal. These programs provide builders with incentives, design assistance, verification support and recognition for ZNE eligible construction projects.
PG&E's Commercial HVAC Optimization Program
As part of their Commercial HVAC Optimization program, PG&E offers participating contractors $50 per HVAC unit for an initial assessment. Participating contractors can also receive up to $1,375 per unit in a one-time payment for bringing HVAC units into compliance with national standards. This means that HVAC Commercial Optimization Program contractors can earn up to $210,000 per year in rebates and with our business solutions.
Opportunity Zones in Napa
Created as part of the 2017 Tax Cuts and Jobs Act, Opportunity Zones were created to direct long-term capital into low-income communities across the U.S., with tax incentives designed to attract private investment into designated census tracts through the use of managed investment funds. The tax breaks are intended to attract funding for start-ups, housing developments and other economic activity that might not otherwise find its way in these designated zones established by the state. View The City of Napa's Opportunity Zones by clicking here.
Developer Financing Resources
The State of California Department of Housing and Community Development makes loans or grants available through more than 20 programs for:
- construction, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, homeless shelters, and transitional housing;
- construction of public facilities and infrastructure;
- construction and rehabilitation of parks linked to affordable housing projects;
- economic development assistance to increase availability of jobs for lower income workers.
CDFIs (community development financial institutions) are mission-driven financial institutions that serve communities and individuals that mainstream financial institutions may not finance. Click here to find a CDFI near you.