Three key points for Cal Competes

  • Competitive process

    Unlike calculation-based tax incentives, California Competes applicants vie against one another for a limited pool of available funds. The online-only applications undergo a two-phase review and approval process by a newly created California Competes Tax Committee. Fierce competition is expected for this lucrative program, with allocated funds totaling:

    • $150 million in fiscal year 2014/2015
    • Up to $200 million in 2015/2016, 2016/2017, and 2017/2018

  • Negotiated Credit Agreements

    Awards are granted on a case-by-case basis, with applicants requesting award amounts and negotiating final credit agreements with GO-Biz.

  • Benefit Assessment

    The two-phase analysis is designed to award tax credits to companies that create the highest number of jobs and deliver the greatest economic benefit to the state. Factors evaluated include:

    • The number of new full-time jobs added
    • Employee compensation and benefits
    • How many jobs the company will create in poverty-stricken areas with high unemployment
    • The company’s overall investment in the state
    • How long the business commits to remaining in California
    • The company’s potential for growth/expansion
    • The business’ strategic importance to the state, region, and/or locality
    • The extent of the state’s anticipated benefit weighed against the company’s tax-credit benefit
    • Other quantitative and qualitative factors, including competition from other states