California’s commitment to fostering innovation and economic growth has once again taken center stage with the recent announcement of over $149 million in grants and tax credits awarded to 12 pioneering companies. These initiatives are projected to generate nearly 6,000 full-time jobs and attract an estimated $1.3 billion in private investment over the next five years.
Governor Gavin Newsom unveiled this investment, facilitated by the Governor’s Office of Business and Economic Development’s (GO-Biz) CalCompetes program. The funding targets companies amplifying California’s semiconductor manufacturing capabilities, spearheading advancements in electric vehicles and aircraft, and propelling various innovative endeavors.
The next application period for the California Competes Tax Credit (CCTC) program opened on January 2, 2024 and will close on January 22, 2024.
The CCTC is a tax credit program, run by the Governor’s Office of Business and Economic Development (GO-Biz), that grants tax credits to businesses that want to locate in California or stay and grow in the state.
Interested businesses need to apply through the California Competes website, https://business.ca.gov/california-competes-tax-credit/, and may do so only during an open application period.
For the remainder of the 2023–2024 fiscal year, GO-Biz will accept applications for the California Competes Tax Credit during the following periods:
- January 2, 2024 – January 22, 2024
- March 4, 2024 – March 18, 2024
Applicants will be evaluated on 12 factors, including:
- Number of jobs created or retained;
- Amount of investment;
- Overall economic benefit to the state;
- Opportunities for future growth and expansion.
Governor Newsom emphasized the significance of such investments, stating, “Investing in ingenuity and innovation works, and no place does it better than California. Businesses like the ones we’re investing in today will drive the future of our economy, helping create thousands of good-paying jobs and bringing billions in economic investment to communities up and down the state.”
Dee Dee Myers, Senior Advisor and GO-Biz Director, echoed this sentiment, highlighting the program’s success and its integral role in supporting forward-thinking enterprises. “With the return of the grant program this year, we’re excited to continue building on the incredible success of CalCompetes over the last decade. Supporting these types of forward-thinking, entrepreneurial companies helps guarantee that California’s innovation economy will continue to provide family-supporting jobs and return sizeable investments back to the state for years to come.”
California Competes Tax Credit: An Engine for Economic Growth
The California Competes Tax Credit stands as a beacon, drawing businesses to establish or expand operations within the state. This income tax credit initiative aims to stimulate job creation, fortify the economy, and cultivate a robust business environment.
Overview and Accessibility
Accessible to businesses of all industries and locations within California, the program prioritizes high-value employers committed to offering competitive wages and benefits. Administered by GO-Biz, the credit undergoes negotiation and approval by the “California Competes Tax Credit Committee.”
Funding and Application Criteria
The program allocates $180 million in credits annually from 2018-19 through 2027-28. To qualify, businesses must present a comprehensive plan detailing how the credit will contribute to the creation of new, full-time jobs within the state.
Impact and Eligibility
Small, medium, and large businesses are eligible without any application fee or prescribed minimum job creation. However, the emphasis lies on generating high-quality, full-time positions, and fostering growth opportunities.
Demonstrating Need and Opportunity
Businesses seeking the credit must articulate its pivotal role in their expansion plans, addressing product or service offerings, customer base, competition, and how the credit will influence their decision to grow or remain in California.
Resources for Further Information
For comprehensive details, application guidelines, and updates regarding the California Competes Tax Credit, the following resources offer valuable insights:
- GO-Biz Official Website: California Competes Tax Credit
- California Franchise Tax Board: California Competes Tax Credit
- California Chamber of Commerce: California Competes Tax Credit Overview
