California Competes Tax Credit
The California Competes Tax Credit is a negotiated income tax credit program created to attract and retain businesses in California creating job opportunities and economic boost. The credit is awarded through a two-phase competitive process and based on several factors including:
- Number of full-time jobs created
- Compensation paid to employees
- Amount of new capital investment
- Business economic impact
The California Competes Tax Credit applies to income tax owed to the Franchise Tax Board. The credit is non-refundable. If the credit allowed exceeds the tax due, the excess may be carried over to reduce the tax in the following year, and the succeeding five year if necessary, until exhausted.
Credit applications for the fiscal year 2016-2017 will be accepted:
- January 2, 2017 through January 23, 2017 ($100 million credit available)
- March 6, 2017 through March 27, 2017 ($68.3 million credit available)
If you are planning or considering to start or expand business in California, please contact us immediately and get your fair share of allocated government funds!