(SACRAMENTO) – Assembly Majority Leader V. Manuel Pérez urges local businesses to apply for job creation tax credits through the state’s California Competes program. This round of the program is making available $45 million in tax credits to businesses seeking to expand and create jobs. The 30-day application period opens this Monday, September 29 and closes on Monday, October 27, 2014.
“The California Competes program helps new and existing businesses create jobs,” said Pérez. “With the online application period for the next funding round starting this Monday, I encourage businesses to apply.”
The tax credit program is open to businesses of any size, though one quarter of the program funding is targeted specifically for small businesses with gross receipts of less than $2 million.
California Competes is managed by the Governor’s Office of Business and Economic Development (GO-Biz). To assist businesses with the application process, GO-Biz will be hosting free regional and online workshops. The first online workshop is planned for this Monday, September 29 at 11 a.m. A second one will be offered on Monday, October 20 at 2 p.m. A regional workshop will be held in El Centro on Tuesday, October 14. The schedule of the workshops and how to register can be found on the GO-Biz website.
Applications will be accepted online, and the awards will be announced January 15, 2014.
The California Competes program was created through AB 93 and SB 90, both adopted in 2013. In addition to the tax credits for job creation, the new program offers sales tax relief on the purchase of qualified research and development equipment and manufacturing equipment. The amount of credits available will increase each year until 2018. During the last fiscal year, GO-Biz awarded $28.9 million to 29 companies that are planning to create 6,000 jobs and invest more than $2 billion in the state.
In addition, earlier this year, GO-Biz announced that businesses located in areas formerly designated as Enterprise Zones, as well as many of the unincorporated areas of eastern Riverside County, are eligible to apply for the New Employment Credit (NEC). The NEC is available for each taxable year beginning January 1, 2014, and before January 1, 2021, to a business owner that hires a full-time employee and meets specific criteria, including demonstrating a net increase in the total number of full-time employees. To learn more about the NEC, please visit the Franchise Tax Board’s website.