The California Competes Tax Credit (CCTC) is an income tax credit program available to both small and large businesses with plans to expand in or relocate 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 California companies since the program’s inception in 2014. In the FY 2017-18 round alone, the state will grant more than $230 million.
Each year, the state grants a series of awards over three rounds: November, April, and June. In the April round of FY 2017-18 program, the state awarded 63 companies a total of $72 million in tax credits based on commitments to add more than 6,500 jobs and invest more than $490 million by 2021. San Diego received 16.27 percent of the total credits, just behind the LA metro that received 22 percent of credits.
Based on the recent announcement, 15 San Diego companies were awarded more than $11.7 million in tax credits. Compared to other metros across California, San Diego fared well across all measures. Of all metros, San Diego received the highest number of small business awards, with more than 40 percent of small business recipients hailing from San Diego. These small businesses were awarded more than $1.7 million in tax credits for commitments to create 71 jobs and invest $4.5 million.
San Diego large businesses – defined as more than $2 million in annual revenue – were awarded more than $10 million in credits. San Diego ranks second in the large business category, with 16 percent of total credits awarded to local large businesses. San Diego also earned the second place ranking in the amount of job creation among all metros, with almost 700 new jobs coming to the region over the next five years.
In this CCTC round, San Diego recipients will invest more than $67.5 million into the community and pay nearly $138 million in wages over the next five years. Since inception, more than 125 San Diego companies have been awarded more than $75 million in credits, committing to the creation of more than 8,500 jobs and $1.4 billion in investments.
Of the 15 company recipients, EDC consulted six winners throughout the application process. Among those that received EDC support, top awardees include Bank of the Internet ($5M credit), Planck Aerosystems ($600K credit), and Fuse Integration ($500K credit).
For more information regarding the California Competes Tax Credit program, please contact Jesse Gipe.