California Competes Tax Credit
About the Program
The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that want to locate in California or stay and grow in California. Businesses of any industry, size, or location compete for over $180 million available in tax credits by applying in one of the three application periods each year. Applicants will be analyzed based on fourteen different factors of evaluation, including number of full-time jobs being created, amount of investment, and strategic importance to the state or region.
FAQ's About Program
- What is the California Competes Tax Credit?
The California Competes Tax Credit is an income tax credit available to businesses that
want to locate in California or stay and grow in California and create quality, full-time jobs
in California that might not otherwise be created by the business or any other business.
Tax credit agreements will be negotiated by GO-Biz and approved by a statutorily created
“California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director
of the Department of Finance, the Director of GO-Biz, and one appointee each by the
Speaker of the Assembly and Senate Committee on Rules.
- How much in tax credits will be available each year?
$180 million in each fiscal year 2018-19 through 2032-33
- Can any business apply for the California Competes Tax Credit? Is the credit restricted to only certain industries or locations in California?
Any business can apply for the California Competes Tax Credit. The credit is available
statewide to all industries. However, while there are no geographic or sector-specific
restrictions, the purpose of the California Competes Tax Credit is to attract and retain high-
value employers in California in industries with high economic multipliers and that provide
their employees good wages and benefits.
- How much credit should I request?
A business should request the amount of credit that it needs to be able to commit to
implementing its proposed project. In the Proposed Project narrative, you should explain
not only why your business “needs” a credit, but specifically how the amount of credit you
are requesting will enable or incentivize your business to create new full-time jobs that
might not otherwise exist in California.
- How does a business demonstrate the extent to which the credit it is requesting will impact its ability/willingness, to create jobs in California that might not otherwise be created by the business or any other business?
In Phase I, a business has the opportunity in the Proposed Project section of the application
to explain the role this credit will play in its willingness/ability to commit to its proposed
California expansion. This project narrative should address (but not be limited to) the
following questions:
• What does the business do? What are its products or services?
• Where are its customers/clients located?
• Do the jobs it is proposing to create have to be in California?
• Are its competitors located in or outside of California?
- If the applicant is awarded a credit, would it give the applicant an unfair advantage
over other local businesses with whom it competes?
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