February 25, 2019 | CIG Tax Insights
In one week, the California Competes Tax Credit (CCTC) program will be open and accepting applications. This will mark the state’s final round of the fiscal year, with an estimated $70 million available.[1]
In its most recently completed round in November of 2018, the Governor’s Office of Business and Economic Development (GO-Biz) granted $70 million in CCTC awards to 17 companies projected to add 2,000 jobs and almost $500 million in capital investments. Out of the 17 awardees, CALincentives represented multiple awards in excess of $1 million.
Enacted in 2013, the CCTC is an income tax credit administered by GO-Biz. Since 2014, GO-Biz has negotiated and granted $829 million in CCTC awards to 974 California businesses. These businesses are projected to create more than 95,000 California jobs and make more than $17 billion in investments in the state.
CIG INSIGHTS: Those interested in applying now should be mindful that the application window will only remain open for 21 days, so time is of the essence. Furthermore, as part of the program’s extension last year, modifications were made to its regulations [10 CCR §8030]. While these changes were subtle, we have found that they have materially impacted how GO-Biz is required to evaluate CCTC winners and losers.
CIG EXPERTISE: Led by Alex Tran and Leslie McBride (former GO-Biz Executive Director), our team of CCTC experts have represented more than 40 businesses to over $35 million in CCTC awards. With awards ranging from $90,000 to $8 million, these funds have helped businesses in manufacturing, tech, R&D, apparel, engineering, life-sciences, software, green energy, food processing, e-commerce and many others.
Combining our deep CCTC technical knowledge, experience and state income tax backgrounds—we believe we have a one-of-a-kind approach to helping our clients grow California jobs and investments through the California Competes Tax Credit.
WE’RE HERE TO HELP: If your business is contemplating growth in California and interested in learning more about this program, please reach out to us for a complimentary assessment.
[1]$35 million plus any remaining unallocated amounts from the current and prior fiscal year.
