The state’s popular California Competes Tax Credit program continues to be available during the 2019-2020 fiscal year. The state has allocated approximately $237 million to be awarded to both small and large business taxpayers. In June, the final award period of last fiscal year, approximately $55 million of tax credits were granted to twenty taxpayers. (more…)
CA Governor’s Office of Business and Economic Development reminds businesses about upcoming August 21st deadline for applications for California Competes Tax Credit.
The California Competes Tax Credit is an income tax credit available to businesses who want to come, stay, or grow in California.
Tax credit agreements are negotiated by Governor’s Office of Business and Economic Development (GO-Biz) and approved by a statutorily created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
In November 2016 the Governor’s Office of Economic Development announced that it had awarded $61 million of California Competes tax credits to 74 taxpayers.
These business entities promised to add over 6,500 jobs and invest $670 million in the California economy.
The credits granted ranged from $8 million to businesses receiving the minimum credit of $20,000. The program is required to grant 25% of the credits to small businesses. It is interesting to note that credits were granted to many taxpayers not operating in manufacturing. Taxpayers receiving credits included entities performing: engineering consulting (Roseville), software development (Folsom); dentist (Fresno), day care services (Oakland); financial planning (Irvine), data analysis (Los Angeles) and architecture (Anaheim). (more…)
The application periods and award amounts for fiscal year 2015-2016 have been announced:
- July 20 to August 17, 2015 ($75 million)
- January 4 to January 25, 2016 ($75 million)
- March 7 to March 28, 2016 ($51 million)
If your company is expanding operations in California you may qualify for the credit but you will not receive a credit unless you apply!
In 2014 California abandoned its Enterprise Zone tax credit program and created several new tax credits in its place. Our guest blogger on Nov 18, 2014 discussed these new credits.
By Guest Blogger: Monika Miles
In 2014, we were introduced to several new tax incentives in California, including the Hiring Credit, California Competes Credit, and the California Partial Manufacturers’ Sales/Use Tax Exemption. The Hiring Credit is a relatively difficult program to navigate and qualification is limited. However, the California Competes Credit and the California Manufacturers’ Exemption could prove beneficial to California companies, and technology companies here in the Silicon Valley.
Is Your Company Growing, Staying or Moving to California? You may be eligible for the California Competes Tax Credit
By Alex Ho, ASL Tax Senior
Did you know that California has recently passed a new Tax Credit, setting aside over $500 million in tax credits over the next five years? The California Competes Tax Credit is a negotiated tax credit via an application process that just begun. The California Competes Tax Credit was designed for businesses that wish to come to California or businesses in California that are growing and staying, offering an incentive to develop California’s economy by mitigating its high corporate tax rate.