CalCompetes tax credit information and application assistance

What is the California Competes (CalCompetes) Tax Credit?

The California Competes Tax Credit is an income tax credit for businesses looking to move, stay or grow in California. Businesses of any industry, size or location are eligible to apply. The purpose of the program is to attract and retain high-value employers in industries with high economic multipliers and that provide their employees good wages and benefits.

CalCompetes application process and 2024-2025 timelines

The application process takes approximately 90 days, which includes the period when applications will be reviewed and presented to the California Competes Tax Credit Committee for approval. There are three application periods during the year. This fiscal year, GO-Biz will accept applications for the California Competes Tax Credit during the following periods:

• July 22, 2024 – August 12, 2024 ($215 million available)
• January 6, 2025 – January 27, 2025 ($215 million available)
• February 24, 2025 – March 10, 2025 ($214.7 million and any unallocated funds from previous periods available)
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CalCompetes tax credit eligibility and evaluation criteria

GO-Biz (the California Governor’s Office of Business and Economic Development) is required to consider the extent to which the credit will influence a business’ ability, willingness or both to create new, full-time jobs in this state that might not otherwise be created in the state by the taxpayer or any other taxpayer.

Additional criteria include:

• Number of jobs created or retained
• Srategic importance to the state, region or locality
• Amount of investment Incentives available from in-state, out of state and federal government sources
• Opportunity for future growth and expansion
• Compensation paid to employees, including wages and fringe benefits
• Extent of unemployment and poverty in current or proposed site location
• Economic impact
• Duration of the proposed project and applicant’s commitment to remain in California
• Extent to which the benefit to California exceeds the benefit to the applicant
• Training opportunities offered to employees
• Extent to which the credit influences creation of new California jobs
  

  CalCompetes application process phases

  There are two phases to the process:

  • Phase I*: A quantitative analysis in which the credit amount requested is compared to the hiring and investment commitments of each applicant. This “ratio” is automatically calculated based on the applicant’s credit request divided by the sum of its aggregate investment and aggregate employee compensation.
  • Phase II: An evaluation of a variety of quantitative and qualitative factors, including:
    • local unemployment and poverty,
    • competing incentives,
    • economic impact,
    • strategic importance,
    • industry outlook and
    • the extent to which the applicant demonstrates that the credit will play a significant role in its decision or ability to create new, quality, full-time jobs in California.

  * GO-Biz will move an application directly to Phase II if:

  • The owner, president, chief executive officer, chief financial officer or other equivalent representative of the applicant certifies to GO-Biz that absent award of the credit the applicant’s project may/will occur in another state or the applicant may/will terminate or relocate all or a portion of its employees to another state. 

  OR

  • A business indicates in the Proposed Project section that at least 75% of the applicant’s proposed net increase of new full-time employees will work at least 75% of the time in an area of high unemployment or high poverty.

Free CalCompetes application assistance

The Greater Sacramento Economic Council team is experienced in helping companies secure CalCompetes funding. We offer complimentary assistance to companies looking to expand in or relocate to the Greater Sacramento region.

Please get in touch with our business development team to learn more.