Assemblymember McCarty Highlights over $131,000 in Tax Credits Awarded to Local Businesses
Over $20 Million Awarded Statewide
SACRAMENTO – Today, Assemblymember Kevin McCarty (D-Sacramento) announced that a combined total of $131,500 in tax credits were awarded to Pikios Auto LLC (Midtown Autoworks), Carrazco & Associates, and Brian Boyd Wealth Management and Insurance Sales, all located in Sacramento. With the support of these tax credits, these businesses will add a combined total of ten additional full time employees in Assembly District 7 through the California Competes Tax Credit program.
“Sacramento, although having better recent job growth than the national numbers, still has a higher unemployment rate than the rest of the nation,” said Assemblymember McCarty. “Programs like California Competes help improve Sacramento’s economy by allowing more businesses to hire our neighbors who are out of work.”
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.
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.