California Competes Tax Credit Interested Parties:
The California state budget signed at the end of June, along with the corresponding trailer bills, made the following changes relating to the California Competes Tax Credit (CCTC):
- Extended the program for 5 fiscal years. GO-Biz will now be able to allocate tax credits through fiscal year 2022-23.
- Set the annual allocation of tax credits available as $180 million per fiscal year, which, consistent with current law, is subject to an annual adjustment by the Department of Finance relating to unallocated credit amounts and recaptured credits.
- Repurposed $20 million from the historical $200 million tax credit allocation to go towards small business technical assistance through a grant program to be administered by GO-Biz. Businesses of all sizes are still eligible and encouraged to apply.
- Added the following criteria for GO-Biz to consider during its review of applications for the credit:
- Training opportunities offered by the business to its employees.
- The extent to which the credit will influence the business’s ability, willingness, or both, to create jobs in California that might not otherwise be created in the state by the business or any other business.
- Added provisions for GO-Biz to provide information, subject to specified confidentiality provisions, to committee members for purposes of the member’s duty to determine whether to approve or reject CCTC agreements between GO-Biz and businesses.
- Added a requirement for the Legislative Analyst’s Office to prepare a report evaluating the program on or before April 1, 2020.
At the end of this month, GO-Biz will begin the formal process for revising the CCTC regulations. CCTC staff will be hosting a webinar [click here to register] on July 18, 2018 at 9:30 a.m. to go over the proposed changes to the CCTC regulations and solicit feedback from program participants and other interested parties prior to initiating the formal regulatory process. A draft copy of the proposed regulations is available here. You will have the opportunity to post questions during the webinar and may also send comments or questions to CalCompetes@gobiz.ca.gov. Please send any comments you have no later than July 26, 2018, so that they can be considered prior to the formal regulatory process.