The California Competes Tax Credit is an income tax credit available to businesses that relocate to California or stay and expand in California. This credit agreement is negotiated by GO-Biz and approved by a statutorily created by the California Competes Tax Credit Committee. (They are made up of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.)
Businesses will commit to certain employment or project investment requirements, they refer to as “milestones,” as part of the credit agreements. The legislation that enacted this credit requires the Franchise Tax Board to review specific businesses books and records to ensure that businesses are in compliance with the agreed upon milestones.
For Fiscal Year 2016-17, $243.3 million of the California Competes Tax Credit will be available for allocation during three application periods. For the third application period, $68.3 million will be available plus any remaining unallocated amounts from the previous application periods will be available for allocation. Applications for the credit will be accepted until March 26, 2018.
For fiscal year 2017-18, GO-Biz will accept applications for the California Competes Tax Credit during the following periods:
July 24, 2017 through August 21, 2017
- January 2, 2018 through January 22, 2018
- March 5, 2018 through March 26, 2018
Curious if your business qualifies for this tax credit? Give us a call or send us an email to talk with one of our accountants. We are ready to help you and your business save by taking a proactive approach with your tax planning.