C&I ALERT: New CALCOMPETES Grant Program Launches in January 2022
As part of the State of California’s economic recovery plan, Governor Newsom and the California Legislature allocated $120 million for fiscal year 2021-2022 for a new California Competes Grant Program (CCGP). This program is an addition to the existing California Competes Tax Credit program, which has an allocation of $394 million available for fiscal year 2021-2022.
The California Competes Grant Program provides a cash grant to companies that are looking to expand or relocate to California. To be eligible for this program a project must meet at least one of the three following criteria:
Create 500 net new jobs in the State of California
Make a significant infrastructure investment requiring construction or renovation expenditures of at least $10,000,000
The project is in an economic distressed community as defined by the California Competes Program
This program is designed for companies that would not see a financial benefit from participating in the California Competes Tax Credit program. Examples include:
Businesses that continuously reinvest profits, generating either significant research and development tax credits and/or net operating losses resulting in little to no tax liability
Smaller sized businesses with relatively low income tax liabilities
Startups with little to no tax liability
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 commitment the project has to the community and to the State of California
The grant’s influence to create jobs and encourage investment
The application period opens on January 3, 2022. The per grant maximum is $36 million per company. Program guidelines and regulations are to be released in November 2021.
Contact Hickey NOW to take advantage of this program.