C&I Alert: New round of grants + tax credits in California

Next Round of California Competes will be open July 25th - August 15th with more than $200m in cash grants + tax credits

Begin preparing your business TODAY!

The next application round for the state’s premiere incentive, the California Competes Cash Grant + Tax Credit, will have a short application window from July 25th - August 15th. With the highly-anticipated $120 million grant round, along with $85 million in tax credits, competition for incentive awards will be fierce.

As the global incentives leader with decades of experience in the State of California, our seasoned team of incentives professionals are prepared to support your business through the strategic application process!

Connect with our California incentives experts to see if your business is eligible.

For more information on the upcoming round, please see our overview below.

Contact us today to for a free eligibility consultation and to begin the application preparation process!

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California Competes Cash Grant + Tax Credit Overview

Overview

The California Competes incentive program is a blend of cash grants and tax credits for businesses evaluating a location decision in the Golden State. Awarded on a competitive basis, the next round of the program will offer $120 million in cash grants and $85 million in tax credits. In order to be considered for the incentives, the business must complete the application process no later than August 15th, 2022.

Eligibility Requirements

To be eligible for the cash grants under the upcoming incentive round, there are certain criteria a project must meet. There are no minimum job or investment thresholds that are required to be met for the tax credit. However, a successful application must show that job creation and capital investment will occur in California as a result of this incentive.

For the cash grant portion of the program, the project must meet at least one of the following requirements:

• Create at least 500 new, full-time jobs in the State of California

• Make a capital investment of at least $10 million

• Project to be located in an area of High Unemployment and/or Poverty, as defined in the California Competes Tax Credit regulations

Application Information

Applications are submitted via an online portal when a funding round is active.  The applicant provides information about the project and provides a tax credit ask.  This ask is the applicant’s “need” for moving the project forward in California.

In evaluating applications, the California Competes Program will consider the following:

·       Number of Jobs Created and Retained

·       Strategic Importance to the State and Region

·       Upskilling and Upward Mobility of Employees

·       Opportunity for Future Growth and Expansion

·       Amount of Investment

·       Other Incentives (in-state and out of state) being considered

·       Compensation paid to Employees

·       Extent of unemployment and poverty in current or proposed site location

·       Return on Investment to the State and Community

·       The grant’s influence to create jobs and encourage investment

Key information of the program:

·       Project cannot commence (creation of jobs, investment, execution of lease, etc.) ahead of the program

·       The next application period opens on July 25th, 2022, and closes on August 15th, 2022

·       There is a projected $120 million for cash grants and $85 million for tax credits under this upcoming round