The governor’s new tax credit package for businesses in 2014 includes the California Competes Credit, 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.
Applications for this tax credit are accepted during announced application periods. The first application period was March 19 to April 14 of 2014, and was also the last application period for fiscal year 2013-2014.
The next filing application will be January 1, 2015 – February 2, 2015. Any applications not approved in the first period will be considered in later application periods for that fiscal year. The second application period will be March 9th, 2015 – April 6th, 2014. It is important to file during the first application period to be eligible for all of the credit available for that year.
How much is the state awarding in 2014-2015? There will be $150 million in credit available, with 25% of that reserved for small business. A small business is defined as one with less than $2 million gross receipts in 2013.
Please contact LSL CPAs at 714.569.1000 for more information.
By Carolyn Bryant, CPA
