California Competes Committee Approves $28.9 Million in Tax Credits for Companies Adding Jobs in California
- Created on Thursday, 19 June 2014 22:14
- Written by IVN
Sacramento, California - The California Competes Tax Credit (CCTC) Committee today approved $28.9 million in tax credits for 29 companies expanding and creating jobs in California.
“The inaugural round of California Competes awardees represents a broad range of industries and regions across California,” said committee chair Michael E. Rossi. “I am confident these companies will use the tax credits to invest in their business, hire more people and contribute to California’s ongoing economic growth.”
Rossi, senior jobs advisor to Governor Brown and chair of the Committee, convened the inaugural meeting of the Committee which includes Treasurer Bill Lockyer, director of the Department of Finance Michael Cohen, Senate appointee Denise Zapata and Assembly appointee Greg Conger.
The awards approved by the Committee are projected to help these companies create almost 6,000 jobs and generate over $2 billion in investments across California. Awardees are exempted from paying state income taxes in the amount awarded. The complete list of approved companies and award amounts can be found here.
“These credits provide significant incentives for companies to invest, create jobs and strengthen California’s economy,” said State Treasurer Bill Lockyer, a member of the California Competes Tax Credit Committee. “Unlike some tax incentive programs, this one has a competitive selection process and requires real accountability from businesses. To be awarded credits, companies must demonstrate how the credits will help create jobs and then make the investments they promise.”
The meeting was hosted at the Department of General Service in West Sacramento and included testimony from GO-Biz Deputy Director Will Koch on the merits of the recommended awardees.
An additional $150 million in tax credits will be allocated next fiscal year and companies not selected in the first round are eligible to reapply once the next application period opens.
About California Competes
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). 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, economic impact, strategic importance and more.
The GEDI 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.