Program Council Backed Awards First Round of Job-Creating Tax Credits
The first round of a series of job-creating tax credits the Bay Area Council advocated for last year were awarded on June 19 to 29 companies around the state. The California Competes Tax Credit (CCTC) Committee approved $28.9 million in credits that are projected to help companies create almost 6,000 jobs and generate over $2 billion in investments. Awardees are exempted from paying state income taxes in the amount awarded. The complete list of approved companies and award amounts can be found here. An additional $150 million in tax credits will be allocated next fiscal year and companies not selected in the first round are eligible to reapply once the next application period opens.
The California Competes tax credit is part of the Governor’s Economic Development Initiative (GEDI) which includes a hiring credit for areas of high unemployment and poverty and a sales and use tax exemption for the purchase of manufacturing, biotech and R&D equipment which is available to companies starting July 1, 2014.