$100 Million In Tax Credits Available to California Businesses
Happy New Year! A new round of funding from the California Governor’s Office of Business and Economic Development (GO-Biz) is kicking off 2017. California Competes Tax Credit is a five-year income tax credit available to businesses of all sizes who want to grow, stay, or locate in California. $243 million in tax credits is available for fiscal year 2016/2017. This period, $100 million is available to California businesses. One quarter of these funds have been set aside specifically for small businesses, defined as businesses making less than $2 million in revenue per year, which allows them to compete on a level playing field.
The first phase of evaluation consists of an online application. Online applications will be accepted starting January 2, 2017 through January 23, 2017 on the GO-Biz website, and will be evaluated based on the cost-benefit ratio. These factors include the amount of credit requested versus how many jobs will be created, retained, or the amount of private investment involved. Businesses can determine the amount of credit that makes the most sense for them.
Applicants with the most advantageous cost-benefit ratio will be moved to the second phase of the evaluation process. GO-Biz staff will work with applicants on the second phase of the process, which requires more detailed information. The California Competes Tax Credit Committee ultimately approves the agreements with the businesses. Applications are confidential, but the awardees will be listed on the GO-Biz website.
All businesses looking to grow are encouraged to apply for this tax credit. For additional information on the tax credits or application process, please contact the Governor’s Office of Business and Economic Development at (916) 322-4051 or email@example.com.