Santa Clarita Valley business owners may apply now through Aug. 20 for the 2018-2019 California Competes Tax Credit.
The California Competes Tax Credit is an income tax credit designed to support the growth of high-quality jobs in California, available to businesses who want to come to, stay in, or grow in our state.
Through a two-phase process, businesses apply and compete for this credit during three application periods each year.
It’s just one of the many business services the Santa Clarita Valley Economic Development Corporation supports in the Santa Clarita Valley, another great reason to explore relocating to the SCV.
Phase I is an online application process, where businesses submit information on their five-year growth plans including a comprehensive description of their growth project, projected new hires and wages, the projected amount of investment equipment and facilities, and their requested tax credit.
A cost-benefit ratio is then calculated, and companies with the most advantageous cost-benefit ratio move on to Phase II for final negotiation and selection.
The next application period is now through Aug. 20, 2018 with $70 million available, to be followed by two additional application periods — Jan. 2 through Jan. 21, 2019 and March 4, 2019 through March 25, 2019 — with amounts still to be determined.
Applications will be accepted online at California Competes Tax Credit.
Check out the California Competes Tax Credit Application Video Tutorials for more details and assistance.
The California Competes Tax Credit awards are based on 12 factors:
* Number of jobs created or retained
* Compensation paid to employees
* Amount of investment
* Duration of proposed project and commitment to remain in this state
* Extent of unemployment or poverty in business area
* Extent the benefit to the state exceeds the amount of the tax credit
* Incentives available in other states
* Opportunity for future growth and expansion
* Other incentives available in California
* Overall economic impact
* Strategic importance to the state, region, or locality
* Training opportunities offered to employees
The awarded credit is applied to the CA state income tax due to the Franchise Tax Board, and is non-refundable and includes a six tax year carry-over provision.
Also, it’s tied to achieving contractual milestones (such as hiring and/or investment) and is subject to recapture provisions.
The California Competes Tax Credit agreements are negotiated by GO-Biz and approved by a statutorily created “California Competes Tax Credit Committee,” which consists of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz and one appointee each by the Speaker of the Assembly and the Senate Committee on Rules.
By ensuring businesses in the SCV or those considering the move to the SCV have current information regarding the various resources available, the SCVEDC helps maintain and expand a vibrant business community in the SCV.
Contact the SCVEDC today and learn more.
The Santa Clarita Valley Economic Development Corporation is a unique private/public partnership representing the united effort of regional industry and government leaders. The SCVEDC utilizes an integrated approach to attracting, retaining and expanding a diversity of businesses in the Santa Clarita Valley, especially those in key industry clusters, by offering competitive business services and other resources.