California Competes Approves $44 million

On August 25th, Go-Biz announced that it had received 341 applications for the 2nd round of California Competes tax credits to be awarded for 2015.  On November 10th, Go-Biz posted that 89 applicant companies received California Competes awards.  This roughly translates as a 1 in 4 award rate for applicants.  Awardees consisted of 30 small businesses and 59 non-small business entities.  In the typical process, each applicant business proposes a target award.  As has been the case previously, accordingly, awards ranged in size from $20K to $4M. 

The California Competes FAQ as well as the Application Guide are both helpful in understanding the entire application and award process.  In short, the process consists of a two-phase application wherein the business provides specific information about the nature of the company as well as a business case for a specific award amount.  

From the Go-Biz Application Workshop Presentation, credit awards are based on 11 factors:

  1. Number of jobs created or retained
  2. Compensation paid to employees
  3. Amount of investment
  4. Extent of unemployment or poverty in business area
  5. Other incentives available in California
  6. Incentives available in other states
  7. Duration of proposed project and duration of commitment to remain in this state
  8. Overall economic impact
  9. Strategic importance to the state, region, or locality
  10. Opportunity for future growth and expansion
  11. Extent of the benefit to the state exceeds the amount of tax credit

Application assistance is available through Go-Biz.  There are also several private consulting firms which offer California Competes application assistance services.    

 

SF Business Times story here