CALIFORNIA COMPETES TAX CREDIT

Summary

The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. The tentative amount of credits that can be allocated by GO-Biz is as follows: $200 million in each fiscal year 2015-16 through 2022-23.

ELIGIBILITY

Any business can apply for the California Competes Tax Credit. The credit is available statewide to all industries. However, while there are no geographic or sector-specific restrictions, the purpose of the California Competes Tax Credit is to attract and retain high-value employers in California in industries with high economic multipliers and that provide their employees good wages and benefits.

PROCESS

  1. Create an account through the program’s website.

  2. Complete and submit an application.

  3. The Phase I cost-benefit ratio will be evaluated relative to other applicants. The business will be informed within a few days if its application is advancing to the next stage.

  4. Phase II applies additional evaluative criteria.

  5. If the business is recommended for a tax credit, a contractual agreement will be prepared. The business will be given the details of its tax credit.

  6. The tax credit award will be submitted to the California Competes Tax Credit Committee for final approval.