California Competes Tax Credits Are Awarded

The latest round of the Golden State incentives went to 14 companies who are expected to create 2,327 new jobs.


https://businessfacilities.com/2020/03/california-competes-tax-credits-are-awarded/
The latest round of the Golden State incentives went to 14 companies who are expected to create 2,327 new jobs.
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California Competes Tax Credits Are Awarded

The latest round of the Golden State incentives went to 14 companies who are expected to create 2,327 new jobs.

California Competes Tax Credits Are Awarded

By the BF Staff
From the January/February 2020 Issue

The Governor’s Office of Business and Economic Development (GO-Biz) recently announced that the California Competes Tax Credit (CCTC) Committee approved $88.7 million in tax credits for 14 companies projected to create 2,327 new, full-time jobs and more than $1.5 billion in new investments across California.

California Competes Tax Credit
Centene ground breaking ceremony for the West Coast headquarters. The campus setting will house five buildings and will employ 2,000 people, to be hired over the next two years.

Since 2014, GO-Biz has allocated $1.04 billion to 1,043 companies projected to create 108,510 new jobs and make $20.9 billion in new investments.

Of the more than $88 million awarded in this round, over $76 million is going to businesses in the aerospace and defense industry. California enjoys $168 billion of economic impact thanks to our aerospace and defense industry—translating to roughly 800,000 direct and indirect jobs.

“California has been at the forefront of the aerospace industry for more than a century,” said Lenny Mendonca, Chief Economic Advisor to the Governor, GO-Biz Director, and Chair of the California Competes Tax Credit Committee. “Investing in this field is an investment in a California economy that works for all. The workforce development happening around this industry creates a runway for future good-skill, high-paying jobs which guarantees California maintains its innovative and economic edge.”

GO-Biz Director and Committee Chair, Lenny Mendonca convened the committee, which includes Treasurer Fiona Ma, Director of the Department of Finance Keely Bosler, and Assembly appointee Madeleine Janis, in Sacramento.

The California Competes Tax Credit was created in 2013 to focus on helping businesses grow and stay in California. In 2018, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to business each year through 2023.

HEALTHCARE GIANT PUTS NEW HQ IN GREATER SACRAMENTO

As California continues to lead the world in health care and life science innovation, Greater Sacramento has become the new home of Fortune 500 company Centene. The $40 billion company is the nation’s largest managed healthcare provider.

The Greater Sacramento Economic Council worked with the City of Sacramento to develop first-time creative incentives that were a driving force behind Centene deciding to locate their new western headquarters in the region. The incentive agreement, unprecedented in the Greater Sacramento region, defines milestones for employment for the company to obtain $13.5 million in incentives.

Greater Sacramento Economic Council received an Honorable Mention Award for the Centene project in Business Facilities annual Deal of the Year competition.

The new facility underway is expected to bring 5,000 high-growth jobs to the region in areas such as health care, information technology, accounting and administration. The company will offer inclusive hiring of veterans, convicted felons and foster youth as well as pull from the vast talent pool in the region.

“Our agreement is a model for private-public partnerships in the state. We offered an incentive not for developing office space. Instead, we said, you bring thousands of new jobs to our city, and we’ll use our Innovation and Growth Fund to help you grow those jobs. Our agreement sets a high standard. Building a high-wage jobs base in our city is paramount. Our incentives also encourage Centene to hire people from our disadvantaged neighborhoods, a key piece of our equity agenda in Sacramento,” says Darrell Steinberg, Mayor, City of Sacramento.

In addition to the approval of the incentive agreement, the City of Sacramento provided sewer credits which resulted in a lowering of Centene’s connection fees by approximately $450,000, a 50 percent or greater discount. Additionally, the State of California Governor’s Office of Business and Economic Development awarded the company a $7 million tax credit through the California Competes tax credit program.

Centene helps to achieve a jobs-housing balance critical to relieving traffic and fighting climate change. The City of Sacramento has demonstrated its ability to retain a top employer of 3,000 existing high wage positions which maintained private sector opportunities needed to retain talent.

The Greater Sacramento Economic Council is the catalyst for innovative growth strategies in the Capital Region of California. The organization spearheads community-led direction to retain, attract, grow and scale new businesses, develop advanced industries and create jobs and investment throughout a six-county region. Greater Sacramento represents a collaboration between local and state governments, market leaders, influencers and stakeholders, with the sole mission of driving economic growth. The Greater Sacramento region was founded on discovery, built on leadership and fueled by innovation.

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.

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