California Competes Tax Credit program creates nearly 6,000 jobs and generates $2 billion in investments.
Assemblywoman Sharon Quirk-Silva (D- Fullerton) announced today that Assembly Bill (AB) 1560 has been signed by California Governor Edmund G. Brown Jr. This legislation, known as California Competes Tax Credit, would authorize the Director of Finance to increase the amount of funding available in the California Competes program, by up to twenty-five million dollars ($25,000,000) per year through 2019.
“It is imperative to ensure that as much funding as possible remains in the program in order to maintain California’s role as a global leader. Although our business climate has improved since the recession, we must continue to work together in order to move California forward. Our goal is to attract and retain businesses and guarantee that small businesses have the tools they need to succeed,” stated Assemblywoman Quirk-Silva.
As part of the Governor’s Economic Development Initiative, the California Competes Investment Incentives program was enacted last year. The law provides an opportunity for California businesses to compete for available tax credits based on the number of jobs to be created and retained, wages paid in those jobs and other factors.
In the 2013-14 fiscal year $30 million in California Competes Tax Credits were issued to 30 companies – including 11 small businesses (over 390 companies applied for over $500 million in funds). According to the 30 companies, these credits will help create approximately 6,000 jobs and spur more than $2 billion in investment across California. These companies represent industries such as manufacturing, biotech, agriculture, food processing, aerospace, high tech, clean tech and more.
AB 1560 received support in both houses and from the Fullerton Chamber of Commerce, California Chamber of Commerce (CalChamber), and Manufacturers and Technology Association.
“If we want California to be able to keep up with the demands that will be placed on a 21st century workforce, we must increase the incentives for high tech businesses to stay in our state, which is exactly what AB 1560 will do,” said Assemblywoman Quirk-Silva.