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The Big Picture San Diego Blog


Cal Competes

July 6, 2018

The California Competes Tax Credit (CCTC) is an income tax credit program available to California businesses expanding or relocating to the state of California. Negotiated by the Governor’s Office of Business and Economic Development (GO-Biz), the California Competes Tax Credit program has awarded more than $600 million in credits to nearly 1,000 California companies since the program’s inception in 2014. In FY17-18 round alone, the state granted more than $194 million in credits.

Each year, the state grants a series of tax credit awards over three rounds: November, April, and June. The completion of the June 2018 round marked the end of the FY17-18 program. Throughout the three rounds of FY17-18, credits were awarded to more than 182 California companies, which are projected to create more than 15,000 jobs and invest more than $2 billion in the state over the next five years.

In the FY17-18 program, 33 San Diego companies were awarded more than $24.4 million in tax credits for the creation of 1,900 new jobs and investments totaling $151 million in San Diego. Compared to other metros in California, San Diego claimed more than 33 percent of the total credits for the fiscal year, the second highest amount of credits in the State.

Businesses are separated into small and large business categories, and more small businesses in San Diego won credits than large. Throughout the fiscal year, 17 small businesses were awarded more than $6 million in tax credits. These small companies will create nearly 300 new jobs and invest $60 million into the local economy over the next five years. More than 22 percent of credits in the small business category we’re awarded to San Diego companies.

One of those small business recipients in the latest round, Urban Translations, was awarded $750,000 in credits for commitments to create 61 new jobs and invest $144,000 in San Diego, with consulting provided by EDC and WTC San Diego. Based in Point Loma, Urban Translations is a local startup that creates digital, interactive menus for the hospitality industry - available in any language. The company recently landed partnerships with Samsung and Google, positioning the company for rapid growth. Samantha Urban, the company’s CEO, intends to leverage savings from the Tax Credit program to convert many of her part-time employees to full time positions to support long-term growth in San Diego.

The next application round for the California Competes Tax Credit program will open Friday, July 30. For more information regarding the California Competes Tax Credit program or with assistance on your application, contact Jesse Gipe, senior economic development manager, EDC.

 

August 6, 2015

SD Cal Competes - By the numbers(2)

On Friday last week, Assembly Speaker Toni Atkins and more than 40 San Diego businesses attended the first workshop for the Cal Competes Tax Credit Program this fiscal year. Now in its second year, Cal Competes is attracting the attention of a diverse set of businesses all over the state.

Last year, California awarded $175 million in tax credits and this year, the program is set to award more than $200 million to the most competitive applicants in three separate funding rounds.

Cal Competes allows businesses to request a tax credit based on their investment in state and the number of employees they hire in the next five years. Determining how to effectively select a competitive ask is where the EDC team can step in to provide specific insights. Our goal is to help as many companies as possible put their best foot forward. In previous rounds, EDC has worked closely with companies like NASSCO & BAE to submit applications.

If your business is planning to incur significant expenses in the next several years in either capital investments or new hires, EDC is ready and willing to help you join the 33 San Diego County companies who won credits in the first year of the program.

These are your tax dollars. Why not win some of them back?

To learn more about the program, please contact Jesse Gipe at jg@sandiegbusiness.org

Assembly Speaker Toni Atkins Cal Competes

Program Schedule

July 20, 2015, through August 17, 2015 ($75 million available)

January 4, 2016, through January 25, 2016 ($75 million available)

March 7, 2016, through March 28, 2016 ($50.9 million plus any remaining unallocated amounts from the previous application periods)

To learn more about last year’s results: goo.gl/dTqPwL