Over $20 Million Awarded Statewide
SACRAMENTO – Assemblymember Eduardo Garcia (Coachella) announced today that $550,000 in tax credits will be awarded to two district companies: United States Gypsum Company, Imperial County and MBC USA, Inc. in Riverside. This California Competes Tax Credit program will assist both companies to add a combined 101 additional full time employees and over $45 million in local investments within the 56th State Assembly District.
“I am pleased to see that our local businesses have taken advantage and will benefit from this new economic tool,” said Garcia. “These tax credits will create more than 100 new job opportunities and leverage over $45 million in investment for our district. I am eager to work and assist our local business communities to benefit from this program.”
The California Competes program was created by state legislation from 2013 that shifted $750 million previously slated for California’s Enterprise Zones into a new program designed to ensure the creation of new jobs by encouraging businesses to locate or expand in California. Under the former system, existing jobs were most often merely relocated from one area to another.
In addition to the tax credits for job creation, the new program offers sales tax relief on the purchase of research and development equipment for life sciences and manufacturing equipment. The amount of credits available will increase each year until 2018. Twenty-five percent of the credits are reserved for small businesses.
Businesses interested in the program can apply through the Governor’s Office of Business and Economic Development (Go-Biz), who then negotiates the credit before it is approved by a California Competes 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.
Over $20 million in tax credits were awarded to California businesses in the 2013-14 fiscal year and over $150 million will be available in the 2014-15 fiscal year.
