Have you heard about the California Competes Tax Credit (CCTC)? It’s a state income tax credit supporting the growth of high-quality jobs in California, available to businesses who want to come to, stay in, or grow in our state. Through a two-phase process, businesses apply and compete for this credit during three application periods each fiscal year (FY).
Here's how it works: Phase I is an online application process, where businesses submit information on their 5-year growth plans including a comprehensive description of their growth project, projected new hires and wages, projected amount of investment equipment and facilities, and their requested tax credit. A cost-benefit ratio is then calculated, and companies with the most advantageous cost-benefit ratio (and additional factors) move on to Phase II for final agreement negotiation and selection. Phase ll applicants must then be approved by the California Competes Tax Credit Committee.
There are $492,129,004 million in tax credits and $120 million in grants available for allocation in the 2023-2024 FY for businesses that are expanding and adding quality, full-time jobs in California that might not otherwise be created by the business or any other business. The Governor’s Office of Business and Economic Development (GO-Biz) use 14 factors when evaluating applicants, such as:
- Number of jobs created or retained
- Amount of investment
- Overall economic benefit to the state
- Opportunities for future growth and expansion
July 24, 2023, through August 14, 2023
($164 million in tax credits available; $120 million in grants available)
- January 2, 2024, through January 22, 2024
($164 million in tax credits available)
- March 4, 2024, through March 20, 2024
($99.7 million plus any remaining unallocated amounts from the previous application periods)
Members of the CCTC team are available to provide technical application assistance (CalCompetes@gobiz.ca.gov / 916-322-4051). Application periods, amounts available, and committee meeting dates for fiscal year 2022-2023 have been posted here.
By ensuring businesses in the SCV or those considering the move to the SCV have current information regarding the various resources available, the SCVEDC helps maintain and expand a vibrant business community in the SCV. It’s just one of the services provided by the SCVEDC for businesses in the Santa Clarita Valley. Contact the SCVEDC today and learn more!
The Santa Clarita Valley Economic Development Corporation (SCVEDC) is a unique private / public partnership representing the united effort of regional industry and government leaders. The SCVEDC utilizes an integrated approach to attracting, retaining and expanding a diversity of businesses in the Santa Clarita Valley, especially those in key industry clusters, by offering competitive business services and other resources.