Tax Update: California Competes Tax Credit (CCTC)

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California Competes Tax Credit (CCTC)

The state of California is offering an income tax credit to businesses that want to locate or stay in and grow in California. All industries of any size may apply for more than $180 million in tax credits during one of the three application periods. Businesses will be selected based on several different factors. Of note is the number of full-time jobs created, the amount invested, and the strategic importance of the business to the state.

Application Periods

  • July 25-August 15, 2022
  • January 3-23, 2023
  • March 6-20, 2023

Evaluation Factors

  1. The number of jobs the business will create or retain in this state.
  2. The compensation paid or proposed to be paid by the business to its employees, including wages, benefits, and fringe benefits.
  3. The amount of investment in this state by the business.
  4. The extent of unemployment or poverty where the business is located.
  5. The incentives available to the business in this state, including incentives from the state, local government, and other entities.
  6. The incentives available to the business in other states.
  7. The duration of the business’ proposed project and the duration the business commits to remain in this state.
  8. The overall economic impact in this state of the applicant’s project or business.
  9. The strategic importance of the business to the state, region, or locality.
  10. The opportunity for future growth and expansion in this state by the business.
  11. The training opportunities provided to employees.
  12. The extent to which the anticipated benefit to the state exceeds the projected benefit to the business from the tax credit.
  13. The extent to which the credit will influence the applicant’s ability, willingness, or both, to create new full-time jobs in this state that might not otherwise be created in the state by the applicant or any other business in California.

Additional Information

California Competes Application Workshop PPT

California Competes Tax Credit Information

Email CCTC

Contact CCTC via Phone: 1-916-322-4051