Summary of the California Competes Credit
From 2014 through 2017, California offers businesses of any size the chance for an income tax credit for either locating in California or staying and adding employees and infrastructure within the state.
The 2014 credits of $30 million have just been awarded to 31 different companies. Nearly 400 companies applied for total requested credits of $500 million. Thus, about 8% of the requesting companies received credits, representing 6% of the total credits requested. Total projected new jobs were 6,098, which averages to a $4,900 credit per new employee.
The credit expands in 2015 to $150 million, and then 2016 and 2017 are $200 million each.
If your company is planning to expand operations or is considering leaving California, applying for the credit seems worthwhile. There is no application fee. Considerable time is involved for the application process, and if the next three years are similar to 2014, businesses have less than a one in ten chance to receive a credit, but the financial gain if approved could be substantial.
The application period for the 2015 cycle will be announced soon. Visit http://www.business.ca.gov/Programs/CaliforniaCompetesTaxCredit.aspx for complete details, including how to apply and to learn about the acceptance process. Contact Tim Evans at (626) 857-7300 with any questions.