The California Governor's Office of Business and Economic Development (GO-Biz) has announced the California Competes Tax Credit (CCTC) application periods for fiscal year 2020-2021. GO-Biz will begin accepting applications for the first round of the fiscal year 2020/2021 program on July 27, 2020, through August 17, 2020.
The CCTC can be an effective tool for businesses looking to relocate or expand in California and offers an opportunity for businesses to help offset the high cost of doing business in the state. The credit is awarded based on a competitive selection process and requires additional considerations beyond the amount of capital investment and number of jobs created.
The CCTC is used for economic development in addition to other federal and state zone-based programs or local incentives.
California recently has limited the amount of credits that taxpayers can claim for three years, and the coronavirus pandemic has made hiring and investments harder to predict for businesses.
At the same time, businesses growing in California may be able to receive greater CCTC awards or become more competitive in the application process.