Carlsbad businesses may qualify for a tax incentive through a new state program called California Competes, which Gov. Jerry Brown has launched as a way to keep businesses in California.
The tax incentive program, which is administered by the Governor's Office of Business and Economic Development, or GO-Biz, aims to hand out $30 million in tax credits this fiscal year, $150 million in 2014-15, and $200 million in 2015-16 and 2017-18.
This is a first for California and is designed to retain businesses and stimulate job creation. Any California business is eligible for this program, but the focus is businesses that are considering leaving the state.
The tax credit is a competitive process and GO-Biz conducts occasional webinars about the program and provides updates about the application process on its website at http://business.ca.gov.
California Competes has instituted controls to ensure that small businesses aren't crowded out of the benefit, with 25 percent of the total credit amount reserved for small businesses each fiscal year. To qualify as a small business, a firm must demonstrate that its gross receipts are less than $2 million annually.
The program also limits the amount a single business may collect in incentives, with no more than 20 percent going to any one company in a fiscal year.
The GO-Biz website explains the application process. The final amount of the credit will be negotiated between a business and the state based on 11 factors, including:
• Number of jobs created or retained.
• Compensation paid or proposed to be paid to employees.
• Amount of the investment a business has in the state.
• Extent of unemployment or poverty in the area where the business is located.
• Other state, local and regional incentives available to the business.
• Incentives to the business available in other states.
• Duration of proposed project and duration of commitment to remain in California.
• Overall economic impact of the business.
• Strategic importance of the business to the state, region or local area.
• Opportunity for future growth and expansion.
• Extent to which the projected benefit to the state exceeds the amount of the tax credit.
The California Competes Tax Credit is one of three programs under the governor's Economic Development Initiative, which a spokesperson called a "more flexible and dynamic set of tools to California than we have had in the past." Other programs include "Manufacturing and Sales & Use Tax Exemption" and a "New Employment Credit," which are also explained on the website.
If your business qualifies for any of these programs you should apply. The City of Carlsbad is dedicated to retaining our local businesses and helping them expand, and this incentive program is a good tool to help us do that.
The tax incentive program, which is administered by the Governor's Office of Business and Economic Development, or GO-Biz, aims to hand out $30 million in tax credits this fiscal year, $150 million in 2014-15, and $200 million in 2015-16 and 2017-18.
This is a first for California and is designed to retain businesses and stimulate job creation. Any California business is eligible for this program, but the focus is businesses that are considering leaving the state.
The tax credit is a competitive process and GO-Biz conducts occasional webinars about the program and provides updates about the application process on its website at http://business.ca.gov.
California Competes has instituted controls to ensure that small businesses aren't crowded out of the benefit, with 25 percent of the total credit amount reserved for small businesses each fiscal year. To qualify as a small business, a firm must demonstrate that its gross receipts are less than $2 million annually.
The program also limits the amount a single business may collect in incentives, with no more than 20 percent going to any one company in a fiscal year.
The GO-Biz website explains the application process. The final amount of the credit will be negotiated between a business and the state based on 11 factors, including:
• Number of jobs created or retained.
• Compensation paid or proposed to be paid to employees.
• Amount of the investment a business has in the state.
• Extent of unemployment or poverty in the area where the business is located.
• Other state, local and regional incentives available to the business.
• Incentives to the business available in other states.
• Duration of proposed project and duration of commitment to remain in California.
• Overall economic impact of the business.
• Strategic importance of the business to the state, region or local area.
• Opportunity for future growth and expansion.
• Extent to which the projected benefit to the state exceeds the amount of the tax credit.
The California Competes Tax Credit is one of three programs under the governor's Economic Development Initiative, which a spokesperson called a "more flexible and dynamic set of tools to California than we have had in the past." Other programs include "Manufacturing and Sales & Use Tax Exemption" and a "New Employment Credit," which are also explained on the website.
If your business qualifies for any of these programs you should apply. The City of Carlsbad is dedicated to retaining our local businesses and helping them expand, and this incentive program is a good tool to help us do that.