California Competes Tax Credit
The California Competes Tax Credit is an income tax credit for businesses that are expanding or relocating to California. California Competes is a tax credit program that Gov. Jerry Brown approved in 2013.
It is a successor program to the Enterprise Zone Tax Credit which was phased out in 2014.
The number of credits available will increase over several years:
- $30 million in 2013-14
- $150 million in 2014-15; and
- $200 million in each year through 2017-18.
The credit available to any individual business will be based on a set of criteria including the number of jobs created, opportunity for future growth, and much more.
Who Can Claim the California Competes Tax Credit?
In order to qualify for a portion of the allocation, the business must have expansion plans to create jobs in California over the next five years or be at risk to leave California. In 2014, the current allocation of tax credits available to businesses is $30 million.
The tax credit award process is a four-part program with a quantitative analysis phase, a qualitative analysis phase, a negotiation phase, and a committee hearing.
KROST is prepared to represent and assist businesses who want to apply for the California Competes Tax Credit. Contact us to start your application!
Updates
For fiscal year 2022-2023, GO-Biz will accept applications for the California Competes Tax Credit during the following periods:
- July 25, 2022, through August 15, 2022
- January 3, 2022, through January 23, 2022
- March 6, 2023, through March 20, 2023