The Governor’s Office of Business and Economic Development (GO-Biz) today announced $80 million in tax credits that are projected to create more than 4,000 new, full-time jobs in California. The funding, from the California Competes Tax Credit program, will bring more than $1 billion in new investments across the state over the next five years.
“As we continue to move forward to safely and fully reopen our state, incentives like these will help us recover, rebuild and reimagine an economy that works for all Californians,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz. “This program is a critical tool to attract and retain employers who will, in turn, create good-paying jobs and economic opportunity across the state.”
As part of his 2021-22 State Budget, Governor Newsom proposed sustained investments to preserve California’s competitiveness. The California Jobs Initiative, a $777.5 million proposal, focuses on job creation and retention by, among other proposals, increasing the funding for California Competes Tax Credit by $90 million to $270 million for fiscal years 2020-21 and 2021-22 and creates a new CalCompetes grant program to support job creation and investments in infrastructure.
Since the start of the Newsom Administration, GO-Biz has awarded 115 businesses $442,708,975 in California Competes Tax Credits. In exchange for the credit, these businesses have collectively committed to create 28,905 quality, full-time jobs and make capital investments of $6,513,965,476.
California Competes Tax Credit was created in 2013 to focus on helping businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance, and more. In 2018, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to business each year through 2023.