Get Tax Credits for Expanding Your Workforce
Learn more about tax incentives in California!
California wants you to stay & grow here
The California Competes Tax Credit was designed to incentivize businesses to relocate to California and/or stay here and grow. Businesses of all sizes can qualify, and 25% of each year’s available funding is set aside for small businesses. Although these tax credits are not refundable, they can be carried forward for up to six years.
The California Competes application process
Unlike many tax incentive programs, obtaining these tax credits is not just a matter of proving that you qualify, and then receiving a standard benefit based on a percentage of qualifying expenses.
After we fill out the paperwork for you, GO-Biz (the Governor’s Office of Business and Economic Development) analyzes it. They take a close look at your requested tax credit amount and your expansion plans, including how many jobs you will be creating, how much each new employee will be paid, the anticipated economic impact and more.
If GO-Biz accepts your application they’ll let you know how much they will give you per person as a tax credit. This is not a uniform amount, and sometimes there’s some negotiation at this point. Once everyone is in agreement, your application is then sent to the California Competes Tax Credit Committee for final approval.