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California Competes Tax Credit

Income Tax Credits to California Businesses to
Encourage Economic Development and Job Creation

Agency Type:

State

Funding Source:

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Governor’s Office of Business and Economic Development (GO-Biz)

Deadline Date:

03/26/18

Description:

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Income tax credits starting at $20,000 to California businesses as an incentive to locate and develop their business in the state. This program is open statewide to businesses operating in any industry. The purpose of this program is to increase the number of jobs with good wages and benefits by attracting and retaining high-value employers in industries with high economic multipliers.

Credit awards are based on 11 factors:

-Number of jobs created or retained
-Compensation paid to employees
-Amount of investment
-Duration of proposed project and commitment to remain in this state
-Extent of unemployment or poverty in business area
-Extent the benefit to the state exceeds the amount of the tax credit
-Incentives available in other states
-Opportunity for future growth and expansion
-Other incentives available in California
-Overall economic impact
-Strategic importance to the state, region, or locality

California Competes Tax Credit:

-Credit against the income tax due the Franchise Tax Board
-Non-refundable
-Six tax year carryover

Accountability:

-Tied to achieving contractual (hiring/investment) milestones
-Recapture provisions

GrantWatch ID#:

GrantWatch ID#: 180343

Estimated Total Program Funding:

$75,000,000

Estimated Size of Grant:

The minimum amount a business can request is $20,000.

No more than 20% of the total funding pool may go to any one applicant per fiscal year.

Additional Eligibility Criteria:

Any business can apply for the California Competes Tax Credit. The credit is available statewide to all industries.

Twenty-five percent of the total credits available each year are specifically reserved for small businesses (gross receipts, less returns and allowances, of greater than $0 but less than $2 million in the business’s prior tax year).

Pre-proposal Conference:

Prior to each application period, GO-Biz hosts workshops and online webinars about the California Competes Tax Credit program. Each workshop or webinar consists of a 45-minute presentation, followed by a question and answer session. Each presentation includes the following:

-Overview of the program
-Program goals and evaluation criteria
-Step-by-step instructions through the application process

All businesses are encouraged to attend a workshop to receive instructions on how to apply.

More information regarding workshops, when updated, may be found here:
http://www.business.ca.gov/Programs/California-Competes-Tax-Credit/California-Competes/Workshops

GO-Biz also provides webinars for those who are unable to attend workshops. Visit the California Competes Tax Credit Webinars page for updated schedule information:
http://business.ca.gov/Programs/California-Competes-Tax-Credit/California-Competes/Webinars

Pre-Application Information:

Applications are accepted on a rolling basis and may be considered at the first board meeting at least 60 days after the completed application is submitted.

The tentative amount of credits that can be allocated by GO-Biz is $200,000 in each fiscal year. 25% of the total amount each fiscal year is reserved for small businesses.

For fiscal year 2017-2018, applications for the California Competes Tax Credit will be accepted during the following periods:

1. July 24, 2017, through August 21, 2017 ($75 million available)
2. January 2, 2018, through January 22, 2018 ($100 million available)
3. March 5, 2018, through March, 26, 2018 ($55.4 million plus any remaining unallocated amounts from the previous application periods)

The California Competes Tax Credit Committee meetings will be held on the following dates (Times and locations to be determined):

1. November 16, 2017
2. April 12, 2018
3. June 18, 2018

The process takes approximately 90 days which includes the period when applications will be reviewed and presented to the California Competes Tax Credit Committee for approval.

Visit the California Business Portal for resources and information about other tax incentives and to help you get your business up and running:
http://businessportal.ca.gov/

Forms and Resources:
http://www.business.ca.gov/Programs/California-Competes-Tax-Credit/California-Competes/Resources

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Apply Online:
https://www.calcompetes.ca.gov

Governor’s Office of Business and Economic Development
1325 J Street, 18th Floor
Sacramento, California 95814

(916) 322-4051
calcompetes@gov.ca.gov

URL for Full Text (RFP):

Geographic Focus:

USA: California