Businesses seek $30 million of California tax credits

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Sugar cane is being grown in the Imperial Valley for bio fuel purposes
Sugar cane is being grown in the Imperial Valley for bio fuel purposes

 

SACRAMENTO – Gov. Jerry Brown’s office is recommending 31 companies for the first round of California Competes tax credit allocations, with one located in the Imperial Valley.

The $30 million worth of tax credits is being offered to companies that want to expand or relocate to California. The selected businesses claim they will add roughly 6,000 jobs and invest more than $2 billion across the state.

The California Competes Tax Credit Committee will meet June 19 to consider approving the 31 businesses.

They include firms from manufacturing, high-tech and clean-tech industries — industries that local business leaders say are needed in the desert to grow a skilled workforce and a more diverse economy beyond agriculture.

The Imperial Valley business is CE&P, an ethanol and biofuel manufacturing facility that is requesting $3.1 million in tax credits.

CE&P, a sugarcane-to-ethanol and electricity production facility, will be located in the Imperial Valley, within a California Enterprise Zone.

CE&P is in the electricity interconnection queue, and is well into the permitting process. They expect their initial project to be in commercial operation in 2016, and to be followed by up to four additional facilities. CE&P is already growing sugarcane to be processed by the facility.

Adjacent to the Mesquite Lake Enterprise Zone, the facility will be easily accessible by truck to the southern California and Arizona ethanol markets. The facility is in close proximity to two power lines that are owned and maintained by the Imperial Irrigation District. CE&P will transmit electricity to its power purchaser via an interconnection with one of these power lines.

In April, 396 companies applied for the California tax incentive program and requested more than $500 million in credits from the program.

The Governor’s Office of Business and Economic Development, or GO-Biz, chose companies based on jobs created, investment, average wages and economic impact.

GO-Biz plans to distribute another $150 million in tax credits next fiscal year. Companies can reapply when the next application period opens.