Assemblymember Freddie Rodriguez announced that over $2 million in tax credits was awarded to local businesses. With the support of the tax credit, these businesses will add 933 additional full time employees in Assembly District 52 through the California Competes Tax Credit program.
The local businesses receiving the tax credits are AFC Trident, Inc. of Ontario; Fruit Growers Supply Company of Ontario; QVC, Inc. who has a location in Ontario; and Virun, Inc. of Pomona.
“The California Competes program is exactly the type of program we need to help create jobs here in the Inland Empire and encourage businesses to stay in California,” said Rodriguez. “An additional 933 full time positions will help many local families who are struggling to find work. I commend all of these businesses for their commitment to keeping their operation in California and I encourage more local businesses to apply for the program.”
The California Competes program was created by state legislation from 2013 that shifted $750 million previously slated for California’s Enterprise Zones into a new program designed to ensure the creation of new jobs by encouraging businesses to locate or expand in California. Under the former system, existing jobs were most often merely relocated from one area to another.
In addition to the tax credits for job creation, the new program offers sales tax relief on the purchase of research and development equipment for life sciences and manufacturing equipment. The amount of credits available will increase each year until 2018. Twenty-five percent of the credits are reserved for small businesses.
Businesses interested in the program can apply through the Governor’s Office of Business and Economic Development (Go-Biz), who then negotiates the credit before it is approved by a California Competes Committee, consisting of the State Treasurer, the Director of the Department of Finance, the Director of Go-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
A free online workshop is being offered to businesses who wish to learn more about the California Competes program. The Webinar will take place on Monday, January 26th from 2 to 3 p.m. More information can be found by visiting the Go-Biz website.
Over $20 million in tax credits were awarded to California businesses in the 2013-14 fiscal year and over $150 million will be available in the 2014-15 fiscal year.