California Continues to Encourage Businesses Growth
With the California Enterprise Zone Program (CAEZ) allowed to expire, California continues its efforts to encourage businesses to create jobs and make investments in California with new and expanded tax credit and incentive programs.
California Designates Three Pilot Areas For New Employment Credit
The Franchise Tax Board has designated three pilot areas for purposes of the new employment credit (NEC) against personal and corporation franchise and income taxes until December 31, 2017: Fresno Pilot Area, Merced Pilot Area, and Riverside Pilot Area. These pilot areas encompass the former Enterprise Zone areas of each of the former Fresno and Merced enterprise zone areas that have the highest unemployment and highest poverty in the State.
Applications Now Being Received for California Competes Tax Credit
The California Competes Tax Credit (CCTC) is an income tax credit that is available to companies for a project associated with staying or growing in California. The tentative amount of credits allocated to Go-Biz are $30M for FY 2013-14, $150M for FY 2014-15, and $200M for each FY 2015-16 and 2017-18. Small businesses with gross receipts of less than $2M during the previous taxable year have been specifically allocated to receive 25 percent of the total credits available each year.