From e-commerce to pet cremation, 31 companies from around the state would get almost $30 million in tax breaks under recommendations by Gov. Jerry Brown's office of business development.
The "California Competes" income and franchise tax benefits would generate almost 6,100 jobs and more than $2.3 billion in investment, according to the recommended companies' application paperwork.
California Competes is part of a package of economic development programs that replaced enterprise zones, a 30-year-old program that the Legislature voted to shut down a year ago with Brown's backing. Demand for the $30 million in available credits for the program's first year far exceeded supply, with almost $560 million in applications. Next year, $150 million in credits will be available.
The California Competes Tax Credit Program committee will consider the awards when it meets June 19 in West Sacramento.
The largest recommended tax credit – $6 million – would go to San Jose-based Samsung Semiconductor, Inc., which promises that the credits would generate almost $358 million in investment and 400 jobs. That translates into about $60 in investment for every dollar of tax credit, and $15,000 in credits for every job to be created.
The smallest recommended tax credit – $20,000 – would go to Novato-based XCell Science, Inc., which promises $213,103 in investment and eight jobs created. That translates into $11 in investment for every tax credit and $2,500 in credits for every job to be created.
Here is the full list of recommended California Competes awards:
PHOTO: California Gov. Jerry Brown visits Takeda, a biotech firm, in San Diego, where he signed signed legislation phasing out enterprise zones and replacing the program with California Competes and other incentives. U-T San Diego/Carolyne Corelis