California State Incentives

Below are some of the incentive programs that the State of California offers:

California Competes Tax Credit

The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Unlike the Enterprise Zone program this program is Statewide. Thus, there are no geographic restrictions. Tax credit agreements will be negotiated by GO-Biz and approved by the “California Competes Tax Credit Committee.” California Competes Tax Credit Information and Updates

New Employment Credit

The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, to a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee. New Employment Credit

Manufacturing and Research & Development Equipment Exemption

Manufacturing and research & development in “biotechnology, physical, engineering, and life science” may qualified for partial sales and use tax exemption on purchases and leases of manufacturing and research & development equipment. According to the law, the limits reported per calendar year are $200 million to be subject to special exemption. Manufacturing and Research & Development Equipment Exemption

California Alternative Energy & Advanced Transportation Financing Authority (CAEATFA)

A sales tax exclusion from both state and local sales tax collection on equipment purchases for qualifying businesses that conduct qualifying activities. Sales tax rates vary by jurisdiction (typically 7.5% to 10%). California Alternative Energy & Advanced Transportation Financing Authority (CAEATFA)

California Research & Development Tax Credit

Companies may qualify for corporate tax income credits for R&D expenses experienced in the business, the credits could be up to 15%, plus 24% of the basic research expenses. In order to qualify the research must satisfy: IRC 41 (d) code. California Research & Development Tax Credit

California Film & Television Tax Credit

Film and television productions featuring California are eligible to apply for the tax incentive, which encourages still-image and entertainment programs to shoot in California. The program offers a variety of amounts of tax credit to different types and scales of productions. California Film & Television Tax Credit

Employment Training Panel (ETP)

A cash reimbursement for training cost incurred by employers set by a pre-determined two-year performance based contract. Contracts vary based on number of employees enrolled, hours of training, training material and employee wages. Employment Training Panel (ETP)

Small Business Loan Guarantee (SBLGP)

The California Small Business Loan Guarantee Program (SBLGP) assists businesses with the creation and retention of jobs while encouraging investment into low- to moderate-income communities. The SBLGP enables small businesses to not only obtain a loan it could not otherwise obtain but more importantly helps to establish a favorable credit history with a lender so the business may obtain loans in the future on its own without the assistance of the program. Small Business Loan Guarantee (SBLGP)

California Capital Access Program (CalCAP)

The California Capital Access Program (CalCAP) encourages participating banks and lending institutions to provide loans to small businesses that fall outside of conventional underwriting standards. Small business owners that have difficulty in obtaining conventional financing may qualify for a CalCAP loan through any CalCAP lender. California Capital Access Program (CalCAP)

For more Business Incentives, click here.