California’s Economic Growth Continues: Latest Round of State Awards to Generate $67.4 Million in New Investments
WHAT YOU NEED TO KNOW: As part of the continued effort of the California Jobs First initiative, the state is investing $17.5 million in innovative companies to bolster the economy and create more than 630 new jobs across California.
SACRAMENTO – This latest round of California Competes Tax Credit awards will continue to support the business community across California, bringing family-supporting jobs and investment that would otherwise go someplace else to the state.
The four companies – which span industries from food manufacturing to clothing design – are expected to create 636 new, full-time jobs that have an average salary of nearly $107,000. Collectively, these companies have committed to making more than $67.4 million of investments in communities up and down the state as a result of their awards.
- Skydio, a drone manufacturer, will use a $10 million award to create 441 new jobs and make $19.26 million in investments across their San Mateo and Hayward facilities.
- Liberated Brands, a clothing designer, will use a $3 million award to create 109 new jobs and make $16.5 million in investments in Costa Mesa and Orange County.
- CSC Manufacturing, a carboard manufacturer, will use a $2.5 million award to create 51 new jobs and make $20.9 million in investments in Modesto.
- Teasdale Foods, a food manufacturer, will use a $2 million award to create 35 new jobs and make $10.8 in investments in Atwater.
“Doubling down on ingenuity and innovation works, and no place does it better than California,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz. “These types of investments in the state’s diverse economy ensure that California will continue to remain a global leader in the industries of both today and tomorrow.”
List of Awards and Funding
How we got here
In March, Governor Newsom announced the creation of the California Jobs First Council focused on streamlining the state’s economic and workforce development programs to create more jobs, faster – including through the California Competes program.
The California Competes Tax Credit was created in 2013 to help businesses grow and stay in California. In 2022, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to businesses each year through 2028. To date, California Competes has awarded tax credits to nearly 1,200 businesses, creating more than 159,000 jobs, and resulting in $50.58 billion of private investment in the state.
Bigger picture
The Golden State, which has the most equitable tax system in the entire country, is #1 in the nation for new business starts, #1 for access to venture capital funding, and the #1 state for manufacturing, high-tech, and agriculture.
Last month, Governor Newsom announced that California’s travel spending reached an all-time high of $150.4 billion last year. This comes after the state’s population increased for the first time since the pandemic and the International Monetary Fund’s World Economic Outlook noting that California remains the 5th largest economy in the world for the seventh consecutive year, with a nominal GDP of nearly $3.9 trillion in 2023 and a growth rate of 6.1% since the year prior, according to the U.S. Bureau of Economic Analysis. California’s per capita GDP is the second largest among large economies.
And just last week, Fortune announced that for the first time since 2014, California is home to the most Fortune 500 companies in the country – beating out Texas, Florida, and all other states. From tech to finance to entertainment, the state’s diverse economy has 57 companies on the list, while Texas and New York are tied in second with 52 companies each.
About GO-Biz
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.