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Go-Biz to Offer California Competes Tax Credit Workshops

December 4, 2013
The Governor’s Office of Business and Economic Development (Go-Biz) will host several workshops on its new California Competes Tax Credit program.
 
Following the dissolution of the state’s Enterprise Zone (EZ) program earlier this year, new programs have been created in its place under the Governor’s Economic Development Initiative (GEDI). GEDI consists of the following three main components:
  • Manufacturing Equipment Sales Tax Exemption
    • Beginning July 1, 2014, specified manufacturing equipment purchases, up to $200 million per taxpayer, will be exempt from California’s 4.19 percent portion of state sales tax. The tax exemption will be available anywhere in California, not just in designated zones.  
  • New Employment Credit
    • Beginning Jan. 1, 2014, employers who operate in designated areas, those with high unemployment or poverty rates, will be given employee wage tax credits upon hiring new employees, that meet certain qualifications, and results in a net increase in the total number of full-time employees. 
  • California Competes Tax Credit
    • Beginning Jan. 1, 2014, Go-Biz will be authorized to negotiate individual tax credit incentive agreements with employer taxpayers that want to relocate or expand their business in California.  
A five-member California Competes Tax Credit (CCC) Committee consisting of the Treasurer, the Director of Finance, the Director of Go-Biz, and an appointee each from the Senate and the Assembly will determine which businesses receive a Personal Income Tax credit or a Corporation Tax credit. 25 percent of the money allocated to this program will be set aside for small business. Credits will be limited to $30 million in FY 2013–14, $150 million in FY 2014–15 and $200 million until 2019 when this program will sunset. Criteria for consideration include:
  • Number of jobs the business will bring to California;
  • Number of jobs the business will retain in California;
  • Amount of compensation paid to employees; and
  • Amount of economic investment and impact moving or retaining the business will have in California.
CCC Workshops Held Statewide
 
Go-Biz will hold a series of CCC Workshops statewide. During the workshops Go-Biz will discuss proposed draft regulations for the CCC Program, provide an overview of the enacting legislation, discuss the proposed draft regulations, and welcome feedback from the community.
 
The workshop schedule is as follows:


 
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