Does your business plan include considering a move to a new state, adding a new location, or perhaps just adding onto your building? Are you planning to hire anyone in 2017? Is your business ready to grow?
If you plan to hire as few as 3 new employees over the next five years, or spend $20,000 or more in capital improvements, please consider applying for this valuable tax credit.
The California Competes Credit is a credit against corporate tax for California business owners who plan to grow or expand their business within the state. Any business can apply for the credit. It is available statewide for all industries. These tax credits are awarded through an application and negotiation process by Go-Biz, the state’s business arm.
Here are the remaining application periods for this fiscal year:
- January 2, 2017 through January 23, 2017 ($100 million)
- March 6, 2017 through March 27, 2017 ($68.3 million plus any remaining unallocated amounts from previous periods)
Of the total credit of $243.3 million to be awarded during 2016-2017, 25% of that is reserved for small businesses. A small business is defined as one with under 2 million gross receipts in 2015.
These are short application periods; each is only three or four weeks long. It’s best to apply during the January 2017 application period and then, if not selected, you may do a simple adjustment of the application online and be eligible for the application period in March.
The minimum credit you may apply for is $20,000. This past year, three businesses in Santa Ana were awarded credits totaling $1,300,000. Four businesses in Anaheim were awarded credits totaling $1,005,000.
Now is the time to get your questions answered about this valuable credit. LSL has the answers, so call now at 714.569.1000.
Written by: Carolyn A. Bryant, CPA
