$70 Million in funds available for Cal Competes Tax Credit
The California Governor’s Office of Business and Economic Development (GO-Biz) is now accepting applications for the California Competes Tax Credit program. $70 million in tax credit funds are available during application periods in 2018 and 2019. The incentive program is intended to offset some of the costs associated with expanding or locating a new business operation in California, providing a tax incentive that can be applied against future taxes on earnings.
What is important about the program is that it open to businesses of all sizes, with incentives ranging from $20,000 to more than $10 million. Evaluation criteria include the number of jobs created (or retained), the amount of investment, the compensation paid to employees, and the likelihood of future growth and expansion. In addition, business sectors considered of strategic importance – including advanced manufacturing, technology, and clean energy -receive additional points in their application.
Since the program was launched in June 2014, San Jose businesses have received more than $45 million in incentive funding. Notable names include global chip companies Samsung Semiconductor and Infineon; autonomous vehicle companies Faraday Future, Guangzhou Automotive Corp (GAC) and the rapidly-expanding Nio; and manufacturers including industrial water treatment equipment maker Puretec, surgical appliance maker Johnson Mathey, and environmental test equipment maker Hastest Solutions.
For fiscal year 2018-19, GO-Biz will accept applications for the California Competes Tax Credit during the following periods:
- July 30, 2018, through August 20, 2018
- January 2, 2019, through January 21, 2019
- March 4, 2019, through March 25, 2019
OED is available to assist any businesses that may be interested in taking advantage of this program – contact Donovan Lazaro at firstname.lastname@example.org, 408 535-4835.