California Competes Tax Credit

The cost of doing business in the Golden State can be prohibitive, but the recently extended California Competes Tax Credit (CCTC) program, which is available to existing and prospective California businesses, could change the game.

The CCTC is a negotiated credit that offsets California state income or franchise tax. Designed to help businesses continue or expand their operations in California, the credit is available to companies of all sizes and across industries, with no boundary restrictions anywhere within California.

Each fiscal year from 2018–2019 through 2022–2023, the CCTC Committee has up to $180 million to award California businesses. Applicants may request up to 20% of the total amount available each fiscal year.

Selection Process

Selection for the CCTC involves a two-phase application process, review, and negotiation with the Governor’s Office of Business and Economic Development (GO-Biz), which administers the credit.

Phase I of the review process takes a detailed look at your business, placing the most weight on certain quantitative information related to your potential contribution to California’s economy through employment and capital investments.

Examining this information closely and well in advance of applying is pivotal to shaping a competitive and accurate application package, because GO-Biz uses this information to calculate a cost-benefit ratio. GO-Biz then compares your cost-benefit ratio against all other applicants to determine if your application will move on to Phase II, which seeks further, more subjective detail from the most competitive applicants.

Following this review process, GO-Biz contacts selected applicants to begin negotiating the terms and conditions of a tax credit agreement.

We Can Help

Moss Adams has been involved with the CCTC since its enactment. We’ve successfully represented and guided a wide range of clients to awards valuing from $100,000 to more than $5 million.

Along with quantifying and analyzing the information on an application, we leverage deep knowledge of the law and past experiences to build competitive CCTC applications. We’re here to help with this process—from pre-application planning to application and negotiations—and we have the experience, resources, and insight to help you benefit from this incentive.

To learn more about the CCTC, including how much of an award may be available to your organization, contact a professional experienced with the credit.

Insights


Alert
The California Competes Tax Credit will allocate $74.7 million during the next application round. Learn how to apply and stand out in the competitive process.

Alert
The California Competes Tax Credit announced its allocation for the January 2019 application round. Here’s what applicants need to know about the competitive process.

Alert
The California Competes Tax Credit program begins accepting applications on July 30, 2018. While companies inside and outside the state are eligible, the application process is competitive.

Webcast
In this webcast, we’ll highlight top tax-planning strategies for California-based businesses, including the CCTC, partial sales and use tax exemption, and cost segregation studies.

Article
Discover how to realize more tax savings through California state tax incentives, exemptions, and cost segregation studies.


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