GAP SECURES $4.25M STATE TAX CREDIT FOR FRESNO EXPANSION
Written By Gabriel Dillard
The Gap, Inc. has been awarded a $4.25 million tax credit to support its expansion plans at its Fresno campus, where an e-commerce fulfillment center has been planned.
A committee of the Governor’s Office of Business and Economic Development, or GO-Biz, today approved a total of $76 million in tax credits for 63 companies as part of the California Competes program to help businesses create new jobs in the Golden State.
San Francisco-based Gap was awarded a tax credit for the expansion of its San Francisco headquarters as well as a new e-commerce fulfillment center planned near Fresno Yosemite International Airport. The retailer plans to invest $100 million in the expansion, according to its tax credit agreement, which would create an additional 698 jobs. According to the GO-Biz agreement, at least 75 percent of the net increase in full-time employees will work at least 75 percent of the time in Fresno.
The Gap indicates it will add 162 new full-time positions in the 2018 tax year, 502 for 2019 ramping up to 698 by 2021.
Panorea Avdis, GO-Biz director and chair of the California Competes Tax Credit Committee, said in a statement: “In the last four years, hundreds of companies have made commitments to expand in the state and GO-Biz will continue to host informational workshops and work with our regional and local partners to ensure companies of all sizes know about and apply for these tax credits.”
The City of Fresno announced last month that The Gap would relocate its e-commerce operation to Fresno, bringing at least 515 new full-time employees. Full operation will ramp up over a three-year period.
The agreement is made possible through a 30-year economic incentive agreement that will provide performance-based incentives based on the creation of at least 500 new net jobs, and possibly hundreds more for part-time and seasonal needs.
The agreement will also ensure continued sustainability for the 351 employees currently working at the Fresno Gap distribution center, which opened in 1999.