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).
The credits awarded can be significant. The financial planner in Irvine committed to add five jobs over five years and make capital investments of $125,000 over the same five-year period. The taxpayer was awarded a $125,000 tax credit over five years. The data analysis firm in Los Angeles committed to add four jobs over five years and no capital investments and was awarded a $40,000 credit.
The remaining application periods and award amounts for fiscal year 2016-2017 are coming up soon!
- January 2 to January 23, 2017 ($100 million available for allocation)
- March 6 to March 27, 2017 ($68 million plus any unallocated funds from prior periods)
If your Company is expanding operations in California you may qualify for the credit— but you must apply to be considered!
Check out our previous blogs discussing the California Competes Tax Credit available to all California taxpayers: