For taxable years beginning on and after January 1, 2014 and before January 1, 2025, the California Competes Tax Credit will be allowed against the net tax in the amount allocated by the California Competes Tax Credit Committee. A taxpayer must enter into a written agreement with the Governor’s Office of Business and Economic Development’s (GO-Biz) which sets forth the amount of credit to be allocated to the taxpayer. Taxpayers may negotiate the amount of credit, which is based a variety of criteria aimed towards expanding and retaining businesses in California.
On February 11, 2014, Pillsbury attorneys Michael J. Cataldo, Jeffrey M. Vesely and Annie H. Huang published their advisory titled GO-Biz Finalizes Proposed California Competes Tax Credit Regulations. The advisory discusses GO-Biz’s release of its final proposed regulations on the California Competes Tax Credit.
Additional Resources: Pillsbury Advisory, GO-Biz Releases California Competes Tax Credit Draft Proposed Regulations (Dec. 4, 2013); Governor’s Office of Business and Economic Development; State of California Franchise Tax Board; California Competes Tax Credit FAQ