More than $62 million in tax credits for 87 companies expanding and creating jobs in California were recently approved by the California Competes Tax Credit (CCTC) committee. The awards will help the companies create a projected 6,400 jobs and generate over $892 million in total investment across the state.
“The California Competes Tax Credit continues to encourage companies from around the world to locate, expand and add good paying jobs in California,” said Will Koch, Chief Deputy Director of the Governor’s Office of Business and Economic Development (GO-Biz). “In just three years, hundreds of companies have made commitments to expand in the state and GO-Biz will continue to host informational workshops throughout the state, as well as work with our regional and local partners, to ensure companies of all sizes know about and apply for these tax credits.”
The largest tax credit, $7.5 million, was awarded to Boehringer Ingelheim for its biotech R&D operation in Fremont, CA. The company will invest $122 million and create 258 full-time jobs. LuLaRoe LLC, a clothing manufacturing and wholesaler, will receive the second-largest tax credit, at $6.4 million. The company will invest $120 million and create 1,362 full time jobs at its locations in Corona, Fontana, and Lakewood. The third largest tax credit, $2.5 million, will go to Green Chef Corporation. The natural, organic, and specialty food distribution company will invest more than $17 million in its Fresno operations, creating 337 full-time jobs.
The California Competes Tax Credit was created in 2013 by Governor Brown to focus on helping businesses grow and stay in California. This fiscal year, GO-Biz allocated over $200 million in total tax credits. Since 2014, GO-Biz has allocated $555.3 million to 775 companies projected to create 77,178 new jobs and make $14.5 billion in new investments. GO-Biz evaluates the most competitive applications based on total jobs created, total investment, average wage, economic impact, strategic importance and more. Companies are exempted from paying state income taxes in the amount awarded.
Relocating or Expanding Your Business In California
Considering California for your company’s relocation or expansion project? Check out Business Facilities’ California Incentives and Workforce Development Guide.