CALIFORNIA INCENTIVES SUMMARY
California Competes Tax Credit
California Competes is an income tax credit available to companies on a very competitive basis. Companies may request an amount of tax credits necessary to implement their proposed project as well as how the tax credits will impact the ability and willingness of the company to move forward with the project in California. The tax credit is available statewide and seeks to attract and retain high-value employers in industries with high-economic multipliers that provide their employees with good salaries and benefits.
New Employment Credit (NEC)
The NEC is a income tax credit available to companies creating full-time employees with wages exceeding 150 percent of the State minimum wage. Only new hires that fit into a targeted group of employees are eligible. Target groups include:
- Unemployed for six months or more and not completing a degree or course of study
- Unemployed for six months or more and completed a degree or course of study more than 12 months before hire
- Veteran, separated from the armed forces within 12 months
- Recipient of the federal Earned Income Credit in the previous taxable year
- Ex-offender convicted of a felony
- Current recipient of CalWORKs or county general assistance
Employment Training Panel (ETP)
Provides funding to employers to assist in upgrading the skills of their workers through training that leads to well-paid, long-term employment. The ETP was created in 1982 by the California State Legislature and is funded by California employers through a special payroll tax. The ETP is performance-based, and training must occur before any reimbursement of costs. Companies determine their own training needs and how to implement a training plan.
Notice: This list of economic development incentive programs is intended to provide a high-level overview of commonly pursued state discretionary programs. A comprehensive analysis of project details will determine the full scope of state and local incentive programs that may be available to support a specific project.