Cramped on space and understaffed? Considering a move to a new state or perhaps just adding onto your building? 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 (CCC) 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.
Go-Biz has announced the following application periods for the credit for the 2016-2017 fiscal year. Below are the three application periods and the amount of money available for each application period:
- July 25, 2016 through August 22, 2016 ($75 million)
- 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, 25% of that is reserved for small business. A small business is defined as one with under 2 million gross receipts in 2015.
Applying for California’s Tax Credits
These are short application periods; each is only three or four weeks long. It’s best to apply during the first application period and then, if not selected, you may do a simple adjustment of the application online and be eligible for the next application period.
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.
The first application period for the fiscal year opens soon. That means that now is the time to get your questions answered about this valuable credit. LSL has the answers, so call now 714-569-1000!
Author: Carolyn Bryant, CPA, LSL CPAs
