The California Competes Tax Credit was created in 2013 to help businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, wages and benefits paid to employees, economic impact, strategic importance and more. In 2022, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to businesses each year through 2028.
The California Competes Grant Program was created in 2021 and extended each of the following two years, with a total of $120 million allocated for the 2023-24 fiscal year. A significant priority for this grant program is to make resources available to businesses who cannot take advantage of a non-refundable tax credit and is one of the state’s main incentive programs to leverage tens of billions of federal funds available under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, and to encourage growth and expansion of semiconductor manufacturing and research and development in California.
In total, CalCompetes has awarded grants and tax credits to more than 1,200 businesses, creating nearly 165,000 jobs.