GO-Biz Releases California Competes Tax Credit Recommendations
As part of the administration’s ongoing efforts to bolster California’s business climate, the Governor’s Office of Business and Economic Development (GO-Biz) released the final list of 31 companies it is recommending for the first allocation of California Competes tax credits totaling $30 million.
“The California Competes tax credit encourages businesses large and small to expand in California and create good paying jobs in a variety of industries,” said GO-Biz director Kish Rajan.
The tax credits are offered to companies interested in expanding or relocating to California. GO-Biz is recommending 31 companies – including 11 small businesses – for a total of approximately $30 million in tax credits. According to the 31 companies, these credits could help create approximately 6,000 jobs and spur more than $2 billion in investment across California. These companies represent industries such as manufacturing, biotech, agriculture, food processing, aerospace, high tech, clean tech and more. The complete list of potential awardees is available here.
Between December of 2013 and April 2014, GO-Biz conducted more than two dozen workshops and webinars statewide to educate businesses on the application process. GO-Biz began accepting applications on March 19th and closed the application window on April 14th.
A total of 396 companies applied and requested over $500 million in total credits. GO-Biz evaluated the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, strategic importance, economic impact and more. GO-Biz will allocate an additional $150 million in tax credits next fiscal year and companies not selected in the first round are eligible to reapply once GO-Biz opens the next application period.
“The high demand for these tax credits underscores the importance of a competitive selection process,” said deputy director Will Koch. “The recommended companies represent a significant impact to California’s economy in terms of new jobs and investment.”
The California Competes Tax Credit Committee (CCTC) will meet on June 19th to consider the GO-Biz recommendations. The Committee is chaired by the Governor’s senior jobs advisor Mike Rossi and is comprised of four additional committee members. The agenda for the meeting and the complete list of committee members is available here.
The California Competes tax credit is part of the Governor’s Economic Development Initiative (GEDI) which Governor Brown signed legislation to enact last year (AB 93 and SB 90). The initiative also includes a hiring credit for areas of high unemployment and poverty which went into effect on January 1st, 2014 and a sales and use tax exemption for the purchase of manufacturing, biotech and R&D equipment which is available to companies starting July 1st, 2014.
The Governor’s Office of Business and Economic Development (GO-Biz) serves as California’s single point of contact for economic development and job creation efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit: www.business.ca.gov.