C&I Alert: New round of grants + tax credits in California
Next Round of California Competes will be open January 3rd - January 23rd with more than $120m 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 January 3rd - January 23rd. With the highly anticipated $120 million grant for 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!
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 tax credits. In order to be considered for the incentives, the business must complete the application process no later than January 3rd, 2023.
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 January 3rd, 2022, and closes on January 23rd, 2022
· There is a projected $120 million for tax credits under this upcoming round