California Competes Tax Credit
The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that want to locate in California or stay and grow in California. Businesses of any industry, size, or location compete for over $180 million available in tax credits by applying in one of the three application periods each year. Applicants will be analyzed based on fourteen different factors of evaluation, including number of full-time jobs being created, amount of investment, and strategic importance to the state or region.
Advanced Transportation and Manufacturing Sales and Use Tax Exemption
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion (STE) Program (the “Program”) excludes from sales and use taxes purchases of Qualified Property if its use is either to process Recycled feedstock or using Recycled feedstock in the production of another product or soil amendment; or that is used in an Advanced Manufacturing process; or that is used to manufacture Alternative Source products or Advanced Transportation Technologies
Sales and Use Tax Exemption for Manufacturing
The California Department of Tax and Fee Administration administers a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases and leases.
Sales and Use Tax Exemption for Agriculture
The California Department of Tax and Fee Administration administers a partial exemption from the sales and use tax for the sale, storage, use, or other consumption of farm equipment, machinery and their parts.
California Research Tax Credit
California businesses conducting qualified research activities in the state may receive a tax credit for eligible expenses, including employee wages, research supplies and certain contracted research. The credit helps offset the cost of developing or improving products, processes, software and technologies.
Employment Training Panel
The California Employment Training Panel provides performance-based funding to employers for training newly hired and existing workers. Funding can support job-related instruction in manufacturing, technology, business skills and other areas that lead to secure, well-paying employment. Employers are reimbursed after participants complete the required training and employment-retention period.
Economic Development Rate Program
This program gives special utility discounts for businesses that require high-energy loads to operate, or continue operating, in California. In Central Valley, Pacific Gas & Electric offers a reduction of commercial and industrial electrical rates of up to 25% for up to five years.
Recycling Market Development Zone Program
The Recycling Market Development Zone program provides low-interest financing, technical assistance, permitting support and marketing assistance to California businesses that use materials recovered from the state’s waste stream. Eligible manufacturers located within designated zones may receive financing for equipment, facilities, working capital and other qualified project costs.
California Small Business Loan Guarantee Program
Administered by California’s Infrastructure and Economic Development Bank, the program helps small businesses obtain financing by providing guarantees to participating lenders. Loans may support business expansion, equipment purchases, working capital, real estate and other eligible business needs.
California Capital Access Program—CalCAP
CalCAP encourages participating financial institutions to make loans to small businesses that may have difficulty obtaining conventional financing. Programs can support business startup and expansion, working capital, equipment, building improvements and specialized clean-transportation investments.
New Employment Credit
The New Employment Credit is available to Qualified employers that hire qualified full-time employees and pay or incur qualified wages for work performed in a designated geographic area (DGA) can claim the credit on a timely-filed original return. The new maximum credit per employee is $56,000 over five years.
