California has created a new California Competes Grant (CalCompetes Grant) Program, with the first application period occurring from January 3 to January 24, 2022. $120 million of funds will be available, with $36 million potentially available to a single awardee.
A business of any size is eligible to apply if it satisfies at least one of the following criteria: (1) creates at least 500 new full-time jobs in California, (2) makes capital investments of at least $10 million, or (3) the project will take place in an area of high unemployment or poverty as defined in the California Competes Tax Credit regulations.
California’s establishment of a new CalCompetes Grant Program and expansion of the existing CalCompetes Tax Credit Program offer opportunities for taxpayers considering expanding their footprint in California. The grant program may be attractive to taxpayers because of the $5 million annual credit limitation during tax years 2020 to 2022.
Companies that are either conducting multi-state site selection analyses for future growth or considering whether to stay and grow in California should consider the California Competes Grant Program regardless of whether they expect to pay cash tax in California.
