TACC partnered with the Governor’s Office of Business Economic Development (GO-Biz) this past week to help businesses learn how to competitively apply for the California Competes Tax Credit program, which has approximately $200 million in tax credits available during the 2015-16 fiscal year for businesses that want to expand in or relocate to California. The California Competes program is a leading component of the Governor’s Economic Development Initiative (GEDI).
GEDI is a redirection of approximately $750 million from the state’s recently dissolved Enterprise Zone Program. The reapportioned funds will serve to establish three new business incentives: a statewide sales tax exemption on all manufacturing equipment and research and development equipment purchases for biotech and manufacturing companies, hiring credits for businesses in areas with the highest unemployment rate and poverty, and establishment of the California Competes Investment Incentives. GO-Biz, the organizational brainchild of Governor Brown to serve as the state’s primary line of effort to achieve job creation goals, is charged with implementation of the GEDI and negotiating the California Competes Tax Credit with employers.
The credit is a break on the state’s income tax for employers looking to create or retain quality jobs in the state. In FY 15-16 alone, GO-Biz is authorized to award nearly $200 million in tax credits. Donna Duperron, President and CEO of the Torrance Area Chamber of Commerce, is encouraged that the state has implemented the incentive but is eager to help bring more of the available funds to Torrance businesses. “The money is there, it now comes down to how we can help Torrance businesses competitively apply for the credits. It would be great to get more of that money invested in Torrance.”
During a round of tax credits awarded earlier this year, Torrance businesses scored two points on the board with Dasco Engineering Corporation and Sage Goddess, Inc. both being awarded substantial tax credits. “We had a great experience with the California Competes application process and are very pleased to have been awarded with the tax credit. This program is not out of reach for Torrance businesses by any means and is a great opportunity to take advantage of,” stated David Meizlik, Chief Operating Officer at Sage Goddess, Inc.
Small businesses are not left out of the picture. One quarter of the available funds are reserved to be specifically awarded to small businesses giving plenty of opportunities for smaller employers to cash-in.
GO-Biz evaluates the most competitive applications based on factors including total jobs created, total investment, average wage, economic impact, strategic importance, and others.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator height_2=”25″ height=”25″ show_border=”yes_border”][/vc_column][/vc_row][vc_row][vc_column width=”1/4″][vc_column_text][/vc_column_text][/vc_column][vc_column width=”3/4″][vc_column_text width=”1/1″ el_position=”first last”]
Brandon is the Governmental Affairs Coordinator for the Torrance Area Chamber of Commerce. His primary responsibilities include facilitating the Chamber’s Governmental Affairs Policy (GAP) group, planning Chamber events with legislators, and facilitating the Chamber’s Political Action Committee (PAC). Feel free to contact him at any time.[/vc_column_text][/vc_column][/vc_row]