The California Business Investment Services (CalBIS)
Unit is comprised of a team of business development experts and specialists
with in-depth insight into available resources, ongoing initiatives, and
government programs that provide direct technical and financial assistance to
companies that are interested in either locating or expanding in California.
Below are some of the incentive programs that the State of California offers:
Competes Tax Credit
The California Competes Tax Credit is an income tax
credit available to businesses that want to come to California or stay and grow
in California. Unlike the Enterprise Zone program this program is Statewide.
Thus, there are no geographic restrictions. Tax credit agreements will be
negotiated by GO-Biz and approved by the “California Competes Tax Credit
Sales And Use Tax Exemption
A partial exemption of sales and use tax on certain manufacturing biotechnology
and research and development equipment purchases. The partial exemption applies
only to the state sales and use tax rate portion, currently at 4.1875 percent.
The exemption does not apply to any local, city, county, or district tax. All
manufacturers (NAICS Codes 3111 - 3399, inclusive), Research and Development in
Biotechnology and Research and Development in the Physical, Engineering, and
Life Sciences (NAICS Codes 541711 and 541712, respectively).
(Full) Sales and Use
Tax Exclusion – Advanced Manufacturing & Transportation and Alternative
A sales tax exclusion from both state and local
sales tax collection on equipment purchases for qualifying businesses that
conduct qualifying activities. Sales tax rates vary by jurisdiction (typically
7% to 9.25%).
Employment Hiring Tax Credit (NEC)
The New Employment Credit (NEC) is available for
each taxable year beginning on or after January 1, 2014, and before January 1,
2021, to a qualified taxpayer that hires a qualified full-time employee on or
after January 1, 2014, and pays or incurs qualified wages attributable to work
performed by the qualified full-time employee in a designated census tract or
economic development area, and that receives a tentative credit reservation for
that qualified full-time employee.
California Research &
Development Tax Credit
Corporate income tax credits available to companies
that have incurred qualified research expenses in California. A taxpayer
qualifies for the credit if it paid or incurred qualified research expenses
while conducting qualified research in California. The taxpayer may receive up
to 15 percent of the excess of current year research expenditures over a
computed base amount.
Employment Training Panel
A cash reimbursement for training cost incurred by
employers set by a pre-determined two-year performance based contract. Contracts vary based on number of
employees enrolled, hours of training, training material and employee wages.
Industrial Development Bond
Industrial Development Bond (IDB) financing is a
competitive financing option available for the acquisition of manufacturing
facilities and equipment providing a financing option for manufacturers to
access private capital markets at tax-exempt rates.
Small Business Loan Guarantee (SBLGP)
The California Small Business Loan Guarantee Program (SBLGP) assists
businesses with the creation and retention of jobs while encouraging investment
into low- to moderate-income communities. The SBLGP enables small businesses to
not only obtain a loan it could not otherwise obtain but more importantly helps
to establish a favorable credit history with a lender so the business may
obtain loans in the future on its own without the assistance of the program.
Capital Access with Collateral Support (CalCAP - CS)
CalCAP CS pledges cash to cover the collateral shortfall of loans of
$100,000 or more. CalCAP CS provides up to 40% of the loan value, with the
possibility of an additional 10% for businesses located in a Severely Affected
Community. Small business lenders loaning to businesses classified as a small
business under U.S. Small Business Administration guidelines and that have
fewer than 500 FTEs. The borrower's primary business and at least 51% of its
employees or business income, sales or payroll must be in California. The
business activity resulting from the bank's loan must be created and retained
Tax-Exempt Bond Financing Program
Private activity tax-exempt bond financing to California businesses for
the acquisition, construction, or installation of qualified pollution control,
waste disposal, waste recovery facilities, and the acquisition and installation
of new equipment.
The California Capital Access Program (CalCAP)
encourages participating banks and lending institutions to provide loans to
small businesses that fall outside of conventional underwriting standards.
Small business owners that have difficulty in obtaining conventional financing
may qualify for a CalCAP loan through any CalCAP lender.
California Film & Television
Tax Credit Program
The California Film Commission offers a tax credit
incentive program to qualified motion pictures. $100 million has been allocated
annually beginning in fiscal year 2009-2010 through 2016-2017. The Program
allows a 20% tax credit for qualified production related expenses to a taxpayer
against State income taxes.