The California Franchise Tax Board is looking to attract new businesses to the California and help existing ones grow through The California Competes Tax Credit. It is an income or franchise tax credit available to businesses that come to California or stay and grow in California. Tax credit agreements will be negotiated by the Governor’s Office of Business and Economic Development (GO-Biz) and approved by a statutorily created “California Competes Tax Credit Committee.” The committee consists of the Director of GO-Biz (Chair), the State Treasurer, the Director of the Department of Finance and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
What is available:
For Fiscal Year 2015/2016, $200.9 million of the California Competes Tax Credits will be available for allocation during three application periods. For the first application period, $75 million will be available for allocation.
Applications for the credit will be accepted at from July 20, 2015, until August 17, 2015.
The California Competes tax credit is part of the Governor’s Economic Development Initiative (GEDI) which Governor Brown signed legislation to enact in 2013 (AB 93 and SB 90). GO-Biz evaluates 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. Companies are exempted from paying state income taxes in the amount awarded. For more information on the California Competes Tax Credit.