Governor’s Office of Business & Economic Development
The Governor’s Office of Business and Economic Development (GO-Biz) was created by Governor Edmund G. Brown Jr. to serve as California’s single point of contact for economic development and job creation efforts.
GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more.
Sales Tax Exemption
The Sales Tax Exemption allows businesses to obtain a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases by companies engaged in manufacturing or biotechnology research and development. A business will be allowed to exclude the first $200 million in equipment purchases from the state share of sales tax (4.19%) beginning in July 2014.
California Competes Tax Credit
The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements will be negotiated by GO-Biz and approved by a newly created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, one appointee from the Senate, and one appointee of the Assembly.
New Employee Credit
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. In order to be allowed a credit, the qualified taxpayer must have a net increase in full-time employees in California, determined on an annual full-time equivalent basis.
Research & Development Tax Credit
This State Tax Credit is designed to encourage companies to increase their basic research and development activities in California, the research and development tax credit allows companies to receive a 15 percent credit against their bank and corporation tax liability for qualified in-house research expenses, and a 24 percent credit for basic research payments to outside organizations.
Industrial Development Bonds
Congress created tax-exempt Industrial Development Bond (“IDB”) financing to promote investment in land, buildings and new equipment associated with domestic manufacturing and processing operations.
Elective Single Sales Factor
California currently uses a triple apportionment corporate income tax structure method for assessing taxes on businesses. This tax system weighs a company’s payroll, property, and sales when apportioning taxes. Beginning January 1, 2011 California companies will have the option to use the single sales factor method for corporate income tax.
California Alternative Energy & Advanced Transportation Authority (CAEATFA) Sales & Use Tax Exemptions for Zero Emission Vehicle (ZEV) Manufacturing
The purpose is to provide industry in California with different methods of financing alternative energy and advanced transportation technologies. Since the passage of SB71 in April of 2010, the program has been expanded to all renewable energy technologies.
Employment Training Panel (ETP)
A company may be eligible for a contract with ETP to help assist with post-hire training reimbursement. If the proposed training qualifies and meets ETP’s eligibility criteria a contract will be developed.
The Employment Development Department, in partnership with Local Workforce Investment Area, may assist, recruit, screen and test, evaluate and hire qualified employees.
California Investment Guide
For the complete list of California’s business incentives and resources, download the California Investment Guide.