Tax credits projected to create 6,236 jobs and make $1.2 billion worth of new capital equipment investments across California.
Sacramento, Calif. – Today, the Governor’s Office of Business and Economic Development (GO-Biz) announced that the California Competes Tax Credit (CCTC) committee approved $69 million in tax credits for 90 companies projected to create 6,236 jobs and make $1.2 billion worth of new capital equipment investments across California. View the complete list of approved companies and award amounts.
“The California Competes Tax Credit encourages companies from around the world to locate, expand and add good paying jobs in California,” said Panorea Avdis, GO-Biz Director and Chair of the California Competes Tax Credit Panel. “In just three years, hundreds of companies have made commitments to expand in the state and GO-Biz will continue to host informational workshops and work with our regional and local partners to ensure companies of all sizes know about and apply for these tax credits.”
GO-Biz Director Panorea Avdis convened the committee, which includes Treasurer John Chiang, director of the Department of Finance Michael Cohen, and Senate appointee Denise Zapata and Assembly appointee Madeleine Janis, at the California Department of Food and Agriculture auditorium in Sacramento.
“This tax credit was the decision-maker for our company to add manufacturing jobs here in California,” said John Barrett, Chief Financial Officer, ReAction Optics. “As a third generation Californian, I want these jobs to be here, but as an executive, I have to make business decisions. This credit ensures our long-term growth happens right here at home.”
In 2013, Governor Brown created the California Competes Tax Credit to focus on helping businesses grow and stay in California. Since 2014, GO-Biz has allocated $622.8 million to 865 companies projected to create 83,414 new jobs and make $15.7 billion in new investments.
“Our company set out to reduce traffic congestion and vehicle emissions and invented the foldable electric vehicle,” said Peter Lee, CEO and Founder of Urban 626. “California is where the idea was founded, and because of the California Competes Tax Credit award, it’s where the URB-E will be manufactured.”
About California Competes
The California Competes tax credit is part of the Governor’s Economic Development Initiative (GEDI) which Governor Brown signed legislation to enact in 2013 (AB 93 and SB 90). GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance and more. Companies are exempted from paying state income taxes in the amount awarded.
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, www.business.ca.gov.
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