Read here for an update on the ongoing CA Competes Tax Credit.
As the mainstream media wonders where Amazon will locate its HQ2, many states are in the news touting their credits and incentives benefits to draw in company expansions. We thought it would be a good time to revisit the California Competes Tax Credit. As we’ve reported before, the credit has been available since January 2014 and isn’t scheduled to sunset until 2025. Every year, the state earmarks funds for the program of approximately $200 million, and companies compete for the funds during three application periods per year.
The CA Competes Tax Credit is an income tax credit available to companies who want to expand their business in CA. (They can be in state businesses expanding or businesses new to the state.) Companies that apply for this credit must submit applications to the state detailing increased investment in CA. Tax credit agreements are negotiated by GO-Biz and approved by a statutorily created “California Competes Tax Credit Committee.” The GO-Biz is a board consisting of representatives from the Governor’s office of Business and Economic Development. Not all companies requesting money receive it. There is a subjective process for allocating the funds annually.
Here’s the latest surrounding the California Competes Tax Credit Program.
What’s new with the California Competes Tax Credit program? As we explained several months ago, the program had three different application periods for the 2014-15 fiscal year:
- September 29, 2014, through October 27, 2014 ($45 million available)
- January 5, 2015, through February 2, 2015 ($75 million available)
- March 09, 2015, through April 6, 2015 ($31.1 million available plus any unallocated amounts from the previous application periods)
Now that all three application periods have passed and we wait for the State’s office of economic development, Go-Biz, to release data for the upcoming fiscal year, we thought this would be a good time to look at the program and provide a quick update. As we previously explained, “The program was implemented to offer California-based businesses an income tax credit if they’re looking to expand, or for non-California organizations looking to relocate to the Golden State.” Continue reading
The deadline to apply for the California Competes Tax Credit program is October 27th.
The California Competes Tax Credit Program is in full swing. In this article we review the basics about this incentive program as well as important facts and dates to take into consideration.
What Is The California Competes Tax Credit Program?
Earlier in 2014, the State of California announced the innovative California Competes Tax Credit program. The program was implemented to offer California-based businesses an income tax credit if they’re looking to expand, or for non-California organizations looking to relocate to the Golden State.
The project has several phases, and applications from businesses go through a review process to determine which opportunities best meet the state’s objectives for economic development, and to allocate funds to companies that best carry out those objectives. Continue reading