Over $68 million in Business Tax Credits available through CA Competes
The new application period for business tax credits through the California Competes (CA Competes) program continues through March 27. CA Competes is administered through the Governor’s Office of Business and Economic Development (GO-Biz). Over $68 million in tax credits are available during this application period.
Existing businesses that are expanding, or companies that are relocating to California, are eligible for CA Competes. Each tax credit agreement is negotiated by GO-Biz and the individual business, and is applied to reduce the income tax of the business.
CA Competes has no application fee, and the tax credit amount for each business is based on a set of criteria, including:
- The number of jobs that a business creates or retains in California.
- Compensation paid to employees, including wages and benefits.
- Amount of investment in the state by the business.
- Timeframe that the business commits to remain in California.
- Overall economic impact of the business.
Small businesses should consider applying for CA Competes. Up to 25% of the tax credits in each fiscal year are set aside for businesses with gross receipts of less than $2 million in the previous year.
To date, four Camarillo companies have been awarded tax credits through CA Competes, totaling over $2.5 million. To apply, go to www.calcompetes.ca.gov.
Free assistance with the CA Competes application is available through the Economic Development Collaborative of Ventura County (EDC-VC), which is located in Camarillo. Contact the EDC-VC at (805) 384-1800 (ext. 21), or www.edc-vc.com.