The California Competes Tax Credit provides a credit against state income tax due and is tied to achieving contractual milestones including hiring and investment.The process is competitive in nature with companies submitting an application to the State, which reviews and decides the award based on a number of factors.Agreements are negotiated by State staff and considered by the California Competes Tax Credit Committee.The application process occurs 2 to 3 times per year depending on funding availability. (Partial) Sales And Use Tax Exemption A partial exemption of sales and use tax on certain manufacturing biotechnology and research and development equipment purchases. The partial exemption applies only to the state sales and use tax rate portion, currently at 4.1875 percent. The exemption does not apply to any local, city, county, or district tax. All manufacturers (NAICS Codes 3111 - 3399, inclusive), Research and Development in Biotechnology and Research and Development in the Physical, Engineering, and Life Sciences (NAICS Codes 541711 and 541712, respectively).
(Full) Sales and Use Tax Exclusion – Advanced Manufacturing & Transportation and Alternative Energy The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides a sales and use tax exclusion for advanced manufacturers and manufacturers of alternative source and advanced transportation products, components or systems Sales tax rates vary by jurisdiction (typically 7% to 9.25%).
New Employment Hiring Tax Credit (NEC) The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, to a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee.
EDC staff can provide more information, application materials, introduction to State staff to address questions and professionals who can assist in the application process if needed.