California Invests $149 Million in Cutting-Edge Companies, Creating Nearly 6,000 Jobs
This latest round of CalCompetes grants and tax credits awarded to 12 companies is projected to bring in almost $1.3 billion of private investment and create nearly 6,000 jobs with an average salary of $118,700
In total, CalCompetes has awarded grants and tax credits to more than 1,200 businesses, creating nearly 165,000 jobs
SACRAMENTO – Governor Gavin Newsom today announced that California has awarded more than $149 million in grants and tax credits to 12 innovative companies, creating nearly 6,000 full-time jobs and bringing in an estimated $1.3 billion in private investment over the next five years.
The funding, from the Governor’s Office of Business and Economic Development’s (GO-Biz) CalCompetes program, is going to companies expanding their operations in California and advancing the state’s semiconductor manufacturing capabilities, building the next generation of electric vehicles and electric aircrafts, and more.
WHAT GOVERNOR NEWSOM SAID: “Investing in ingenuity and innovation works, and no place does it better than California. Businesses like the ones we’re investing in today will drive the future of our economy, helping create thousands of good-paying jobs and bringing billions in economic investment to communities up and down the state.”
SENIOR ADVISOR AND GO-BIZ DIRECTOR DEE DEE MYERS: “With the return of the grant program this year, we’re excited to continue building on the incredible success of CalCompetes over the last decade. Supporting these types of forward-thinking, entrepreneurial companies helps guarantee that California’s innovation economy will continue to provide family-supporting jobs and return sizeable investments back to the state for years to come.”
🛩️ ELECTRIC AIRCRAFTS
Joby, a leader in the electric aircraft field, will be making over $40 million of capital investments and creating nearly 700 new jobs as part of its expansion efforts in Santa Cruz and Marina.
AIBOT received a $15 million grant to further its manufacturing and R&D capabilities in Long Beach and Mojave as it continues developing artificial intelligence software and building autonomous electric aircrafts. In exchange, they will create almost 700 new jobs and invest nearly $500 million across the two locations.
💻 SEMICONDUCTORS & MICROCHIPS
Two California businesses will be expanding their efforts to increase domestic production of the next generation of semiconductors and microchips in the hopes of attracting additional federal investments through the CHIPS Act.
Tynergy received a $15 million grant to relocate its headquarters from Wyoming to Fresno, where they will manufacture semiconductors and energy storage systems. In the process, they will create at least 500 new, full-time jobs and make nearly $21 million of capital investments in the region.
Infinera, a semiconductor chip developer and manufacturer, received a $14 million grant to expand its operations in San Jose and Sunnyvale. Between the two locations, they will make over $180 million of capital investments and create nearly 250 new jobs.
🔋 NEXT-GENERATION EV BATTERIES
Sparkz, a lithium iron phosphate battery manufacturer, received an $11.2 million grant to create 500 new, full-time jobs and make over $83 million in capital investments in Rancho Cordova.
AUGMENTED REALITY, ARTIFICIAL INTELLIGENCE, AND MORE
Snapchat, who is expanding their operations in Palo Alto, San Francisco and Santa Monica, will use their award to advance their manufacturing capabilities for their augmented reality devices.
Helm.ai and Humane, both of whom will use their award to further develop artificial intelligence software, will be expanding their respective operations in San Francisco and the broader Bay Area.
The California Competes Tax Credit was created in 2013 to help businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, wages and benefits paid to employees, economic impact, strategic importance and more. 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.
The California Competes Grant Program was created in 2021 and extended each of the following two years, with a total of $120 million allocated for the 2023-24 fiscal year. A significant priority for this grant program is to make resources available to businesses who cannot take advantage of a non-refundable tax credit and is one of the state’s main incentive programs to leverage tens of billions of federal funds available under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, and to encourage growth and expansion of semiconductor manufacturing and research and development in California.
In total, CalCompetes has awarded grants and tax credits to more than 1,200 businesses, creating nearly 165,000 jobs.
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.
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