Author: OC Politics Blog Sept 17, 2014 Assemblywoman Sharon Quirk-Silva (D- Fullerton) announced today that Assembly Bill (AB) 1560 has been signed.
Author: OC Politics Blog Sept 17, 2014
SACRAMENTO, CA- Assemblywoman Sharon Quirk-Silva announced today that Assembly Bill (AB) 1560 has been signed by the Governor. 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 globally competitive. Although our business climate has improved over the years since the recession, we must continue to work together in order to move California forward. Our goal is to attract and retain business 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 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 has received support from the California Chamber of Commerce (CalChamber) and the Manufacturers and Technology Association (MTA). In addition, the Fullerton Chamber of Commerce has also expressed their support in the bill.
“The California Competes Tax Credit Program proved to be very successful in its first year. The awards that were approved by GO-Biz are projected to create nearly 6,000 jobs and generate over $2 billion in investments. Unfortunately, recently enacted legislation reduces the amount of funding in future years, weakening a valuable economic tool that has contributed to a more competitive environment in the state. AB 1560 authorizes the Department of Finance to restore funding to the program and, in doing so, sends a strong message to employers that California favors economic policies that make the state more investment-friendly. For these and other reasons, we SUPPORT AB 1560 (Quirk-Silva) as a JOB CREATOR,” stated the Fullerton Chamber of Commerce.
“If we would like to ensure that California will 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 California, which is exactly what AB 1560 will do” said Assemblywoman Quirk-Silva.
Assemblywoman Sharon Quirk-Silva represents the 65th Assembly District, which includes the communities of Buena Park, Cypress, Fullerton, Hawaiian Gardens, La Palma, Stanton, and West Anaheim.