Over the past four years, the Governor’s Office of Business and Economic Development (GO-Biz) has awarded over $620 million in California Competes Tax Credits, with awards as large as $15 million, to attract and retain businesses considering a significant new or continued investment in California. Given the proposed reduction of the program, submitting an application with the correct amount of requested credits and making a strong case for the award is now more important than ever.
Type: Client Alerts
California Competes Tax Credits history
Over the past four years, GO-Biz has awarded over $620 million in California Competes Tax Credits, a tax credit that may be used to offset the awardee’s California income and franchise tax liabilities, including the alternative minimum tax (AMT). The California Competes Tax Credits awarded have been as large as $15 million and used by GO-Biz to attract and retain businesses considering a significant new or continued investment in California.
The California Competes Tax Credits program was created in 2013 as part of three new economic development programs that replaced California’s Enterprise Zone program. Under current law, GO-Biz may only make new California Competes Tax Credit awards through fiscal year 2017–2018. But the Governor’s 2018–2019 budget proposal extends the program for another five years and, among other changes, modifies it by reducing the annual allowance from $200 million to $180 million.