California Competes Tax Credits Open to Expanding Ontario Businesses
The California Competes Tax Credit offers Ontario businesses that are seeking funds for growth an opportunity to receive up to $40 million in state tax credit. Read below for more information on this program.What is the California Competes Tax Credit?The California Competes Tax Credit is a business-funding initiative run by the California Governor’s Office of Business and Economic Development. Each fiscal year, California Competes has $200 million available in funding for businesses located throughout the state, with individual tax credits ranging from $20,000 to $40 million. There are three funding application periods throughout the fiscal year during which companies can apply online for a tax credit. The current funding application period ends on August 17, 2015.Why should Ontario businesses apply for the California Competes Tax Credit?If your business is looking to expand, the California Competes Tax Credit could help fund its growth. There are 4 factors that will make your business’s funding application a priority: (1) Your business is applying to fund a growth project; (2) You are an out-of-state business applying for funds to relocate to California; (3) Your business is applying for funds to relocate within California; and (4) Your business is strongly considering relocation outside of California and is applying for funds to retain business in the state.To apply for funds during this funding period, submit an application by August 17, 2015.How are the California Competes Tax Credit applications evaluated?The California Competes Tax Credit Committee reviews applications in two phases. These phases analyze factors such as the cost-benefit ratio of funding, economic impact, the number of retained employees, salary/benefits, and the extent of unemployment in the surrounding area. If a business is selected for funding, the committee will approve tax credit agreements between the business and the Governor’s Office of Business and Economic Development. Where can a business apply?The online application for the California Competes Tax Credit can be found at https://www.calcompetes.ca.gov/.For more information on the application process, including a step-by-step guide, follow the link below:www.business.ca.gov/CalCompetes.aspxIf you are applying on behalf of an Ontario business and would like assistance with the application process, feel free to contact the Ontario Economic Development Agency at (909) 295-2005, or visit our contact page. Article written by Olivia Egger.