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June 29, 2017

The California Competes Tax Credit is an income tax credit program available to businesses expanding or relocating to California. Created in 2014 by the California legislature and overseen by Governor Jerry Brown’s Office of Business and Economic Development, the California Competes Tax Credit is divided into three separate rounds for each fiscal year. In FY 15-17, more than 270 companies were awarded more than $204 million in tax credits.
 
In all three rounds this year combined, 30 San Diego companies earned more than $20 million in income tax credits – claiming 10 percent of the total tax credits awarded in FY 16-17. In return, these San Diego companies have committed to $242 million of investments and 1,408 new jobs totaling more than $340 million in wages by 2021.
 
In the third and final round that took place this June, San Diego companies were awarded about $3 million in tax credits, making up five percent of the total $59 million awarded across the state. For each round of the program, businesses are categorized as either small or large, with credit amounts distributed to both groups. During the June round, San Diego small businesses made up 1.79 percent of the total tax credits – totaling $1.05 million – while large companies made up 3.73 percent of the total, or $1.9 million.
 
The Cal Competes program will open its first round of the FY 17-18 on July 24, in which $75 million of this year’s $250 million is up for grabs. If your business is considering relocating to, or expanding in, California, we encourage you to leverage the program as tool to reduce your tax liability. The EDC team stands by to assist with applications, as we have with many other San Diego companies.
 
Attend an upcoming workshop in Vista or Oceanside to learn how your business can apply for a tax credit, or contact Jesse Gipe for more information.
 
July 22, 2016

The California Competes Tax Credit is a program created by the California legislature and managed by the Governor’s Office of Business and Economic Development (GO-Biz). The tax credits are awarded by the state to companies who are looking to move to, or stay and grow in, California. In the 2015-16 round, the state awarded more than $150 million in tax credits to 259 companies who pledged to create almost 20,986 jobs over the next five years.

Within each year of the Cal Competes program credits are awarded over three separate rounds. In the last round of the 2015-16 fiscal year of the program, which closed in June, San Diego companies captured $7 million in tax credits – the largest amount of tax credits in the state and 16 percent of the total allotted credits. San Diego received more than $1 million more in tax credits than the second-place region, El Centro – San Diego’s neighbor to the east.

Throughout the entire 2015-16 program (encompassing three rounds), the California Competes program granted 38 San Diego companies more than $19.7 million in tax credits – 13 percent of the total tax credits awarded and the second highest of all regions in the state. With this, local companies committed to the creation of 2,070 jobs over the next five years, which will result in more than $369 million in wages. Those same companies will be investing $214 million in a variety capital projects over that same period.

The program divides companies into either the small or large business category where companies compete separately for a tax credit. In San Diego, large businesses received 7.6 percent – or $11.6 million – of all tax credits for the 2015-16 year. The region’s small businesses were awarded $8 million in tax credits, or 5.32 percent of the year’s pool.              

The Cal Competes program will open its first round of the 2016-17 fiscal year on Monday, July 25 where $75 million of this year’s $250 million is up for grabs. If your business is considering relocating to, or expanding in, California, we encourage you to look at the program as tool to reduce your tax liability. Our team stands by to assist with applications, as we have with many other San Diego companies including Hunter Industries, Taylor Guitars and more.

Attend a workshop to learn how your business can apply for a tax credit, or contact Jesse Gipe for more information.

April 15, 2016

The California Competes Tax Credit is an income tax credit available to businesses that want to locate in or expand in California. Since its launch in 2014 as part of Governor Jerry Brown’s economic development initiative, the California Competes Tax Credit will award close to $380 million in credits to California companies.

On April 14, 103 companies were awarded more than $68 million in tax credits, creating close to 9,370 jobs over the next five years. In total, these companies will invest more than $1.3 billion over the next five years, aiding the state’s long term growth.  

San Diego boded especially well in this round. Eighteen San Diego companies are receiving more than $11.2 million in tax credits, ranking second among all metropolitan regions in the state. San Diego also ranked second in the amount of jobs created among all metros, with more than 1,330 jobs. Some of the companies that will be will awarded the credits include: Hunter Industries and Sentek Global, and many more. These funds will help the 18 San Diego companies invest more than $139.7 million into the community and pay more than $252.8 million in wages over the next five years.

 

February 1, 2016
 
 
As a major win for the region’s innovation economy, today, Mayor Kevin L. Faulconer and San Diego Regional EDC announced that BD (Becton, Dickinson and Company), the world’s largest medication management company, will be maintaining its presence in San Diego, keeping more than 3,000 jobs in the region.
 
Mayor Kevin L. Faulconer said, “San Diego is now home to the single largest medication management company in the world.   I’m proud BD has committed to building upon CareFusion’s legacy in San Diego, which means that more than 3,000 locals can continue to rely on this company to help them take care of their families, put food on the table and a roof over their heads.”  
 
Bill Kozy, Executive Vice President and Chief Operating Officer of BD said, “San Diego is home to more BD associates than any other city in the world. The region not only offers a great place for associates to live, but it is also home to world-class health care facilities, great universities and many innovative companies that create a highly educated talent pool and opportunities for unique collaborations.”
 
Mark Cafferty, President & CEO, San Diego Regional EDC said, “BD and its 3,000 employees are staying and growing in San Diego. As a company, BD is an example of what happens when leaders collaborate and a global company continues to invest in our regional economy.”

Congressman Scott Peters said, “BD’s decision to invest their future in San Diego demonstrates the strength of our world-class innovation economy and organizations like the San Diego EDC that support it. This move also means thousands of high-quality jobs for {C}San Diego’s increasingly talented workforce. We must continue to drive economic growth and create the jobs of the future in San Diego by permanently eliminating barriers to success for our innovators and entrepreneurs like the harmful medical device tax.”
 
Panorea Avdis, Director of Governor's Office of Business and Economic Development (GO-Biz) said, “GO-Biz applauds our local partners, Mayor Faulconer’s office and San Diego Regional EDC for their work to keep BD in San Diego and we look forward to continuing to work with the company as they expand in California."
 
In 2015, BD merged with San Diego-based CareFusion, creating a $12 billion company—one of the largest medical technology companies in the world. BD has embraced San Diego and will be growing its footprint locally. As a globally-oriented company, BD has a presence in more than 80 countries, yet it currently has more employees in San Diego than any other city in the world.
 
Tapping into San Diego’s strong medical device and engineering talent, BD will be creating a new global center for health informatics on its Torrey View campus. In addition, the company will also be maintain its manufacturing capabilities in the San Diego region.
 
Since BD announced its acquisition of CareFusion in early 2015, the City of San Diego and San Diego Regional EDC have been working with BD to ensure the newly-integrated company continues to build off the strong legacy San Diego CareFusion has created.  
 

June 19, 2015


Since its launch in 2014 as part of Governor Jerry Brown’s economic development initiative, the California Competes Tax Credit has awarded close to $124 million in credits to California companies that will hire 24,088 jobs over the next five years.

Yesterday, the Cal Competes Tax Credit Committee voted to approve an additional $47 million in tax credits, which will create 11,343 additional jobs, closing out FY14-15 - the first full year of the program. Since the programs inception, 242 companies have received tax credits totaling more than $171.5 million; more than 35,430 jobs will be created and $9.74 billion invested in the state’s economy.

San Diego companies are received more than $19.9 million of these tax credits, or 11.6 percent of all tax credits awarded throughout the state. These funds will help San Diego companies create 3,968 jobs, invest more than $877 million back into their respective companies, and pay more than $646 million in wages over the next five years. 

Companies such as BAE Systems, iboss Cybersecurity, Modern Times, NASSCO and Underground Elephant were awarded these credits.

After the vote next week, San Diego is positioned to rank 2nd in terms of the amount of jobs created and 4th in the amount of tax credits won.

Regional Breakdown of Cal Competes Awards

October 15, 2014

More than 60 businesses attended a seminar Monday to learn how to apply for the Cal Competes Tax Credit. The workshop was co-hosted by EDC and the Governor's Office of Business and Economic Development (GO-Biz). The new income tax credit allows businesses to receive a reimbursement from the state for hiring and capital investment improvements. “The California Competes tax credit encourages businesses, large and small, to expand in California and create good paying jobs in a variety of industries,” said GO-Biz Senior Business Development Specialist Sid Voorakkara.

Congressman Scott Peters (D-San Diego) and Assembly Speaker Toni Atkins (D-San Diego) welcomed businesses to the workshop. 

Assembly Speaker Toni Atkins addresses crowds at a Cal Competes Workshop
 

“We are the greatest state and the eighth largest economy in the world. We compete globally against economies such as Brazil, Russia and India. We are the innovation site for many of the world’s industries,” said Speaker Atkins.

The Cal Competes Tax Credit is now accepting applications through Monday, October 27. GO-BIZ has allocated a total of $45 million for companies this round. Apply now at www.calcompetes.ca.gov. You can watch a step-by-step video on the application process by clicking here

In the last round of Cal Competes, San Diego and Imperial County companies received more than 65 percent - $4.83 million of the $7.37 million allocated for small businesses – under the program meaning that the region raked in more small business credits than any other area in the state combined.

In total, one Imperial County and four San Diego companies were approved for the economic incentives, which are collectively valued at $7.43 million. According to documents filed by the respective companies, the incentives are expected to create 1,144 jobs. San Diego’s diverse industries, including military, maritime, biotech and advanced manufacturing, were well-represented in the credit recipients.

Companies looking to apply or find out more about the tax credits are encouraged to contact Sid Voorakkara and Drew Garrison

June 19, 2014

BST Nano Carbon's Rancho Bernardo HQ

 

More than 1,000 jobs are coming to San Diego and Imperial Counties thanks to California Competes, a new discretionary economic incentive that are part of the Governor’s Office of Business and Economic Development’s efforts to encourage job creation and economic development throughout the state.

“The California Competes tax credit encourages businesses, large and small, to expand in California and create good paying jobs in a variety of industries,” said GO-Biz Director Kish Rajan.

San Diego and Imperial County companies also received more than 65 percent - $4.83 million  of the $7.37 million allocated for small businesses - under the program meaning that the region raked in more small business credits than any other area in the state combined.

other area in the state combined.

In total, one Imperial County and four San Diego companies were approved for the economic incentives, which are collectively valued at $7.43 million. According to documents filed by the respective companies, the incentives are expected to create 1,144 jobs. San Diego’s diverse industries, including military, maritime, biotech and advanced manufacturing, are well-represented in the credit recipients.

“The companies selected for California Competes are indicative of the diverse industries that make up San Diego’s economy,” said Mark Cafferty, president & CEO of San Diego Regional EDC. “We frequently hear that businesses choose San Diego because of its talented workforce and its dynamic innovation ecosystem. We believe that GO-BIZ’s California Competes program will give more companies a reason to grow and expand within our region.”

A chart below lists recipient details:

Company

Location

Jobs

Tax Credit

Petco

San Diego

263

$2,600,000

BST Nano Carbon

San Diego

632

$1,450,000

Sparsha

Oceanside

21

$250,000

American Marine Abatement Services

National City

6

$30,000

CE&P Imperial Valley

Brawley (IV)

222

$3,100,000

 

Total:

1,144

$7,430,000

In an effort to bolster economic development efforts throughout the San Diego/Imperial Regional, San Diego Regional EDC (EDC) outreached to companies and shepherded many through the application process. In 2013, EDC collaborated with GO-BIZ to host two free workshops to educate businesses about the process.

BST Nano Carbon, an advanced manufacturer based in Rancho Bernardo, was one company EDC helped with the application process. The innovator, who works with companies across industries ranging from sporting goods to medical devices and military, will use the funds to create 632 high-paying jobs in San Diego and Temecula.

 “BST Nano Carbon is proud to call San Diego home. Not only do our employees enjoy living here, but strategically, the San Diego area provides access to a skilled workforce and the diverse range of leading companies that represent the industries we serve,” said Randy M. Beck, CEO at BST Nano Carbon. “GO-BIZ has given us another reason we’re proud to be a California-based nano materials manufacturing company. With their assistance, we plan to bring more than 600 jobs to the San Diego area over the next five years.”

Statewide, 31 companies will be receiving the first allocation of California Competes tax credits totaling $30 million. The funds will increase to $150 million during the 2014/2015 fiscal year.

The California Competes tax credit is part of the Governor’s Economic Development Initiative (GEDI) which Governor Brown signed legislation to enact last year (AB 93 and SB 90). The initiative also includes a hiring credit for areas of high unemployment and poverty which went into effect on January 1st, 2014 and a sales and use tax exemption for the purchase of manufacturing, biotech and R&D equipment which is available to companies starting July 1st, 2014.

Companies interested in learning more about the credits are welcome to contact San Diego Regional EDC for assistance. EDC does not charge for these services. 

November 7, 2013

California group photo with Sec. of Commerce Pritzker

EDC recently joined a delegation of nine California organizations, organized by the California Governor’s Office of Business and Economic Development (GO-Biz), at the inaugural SelectUSA  Investment Summit in Washington D.C. The goal was to promote the golden state as the prime spot for international trade and investment. Hosted by the Department of Commerce, the summit connected top-level corporate executives and investors from the U.S., and around the globe, with the nation’s economic development organizations at the state, regional, and local levels.

Despite the federal government shutdown a few weeks prior, it was business as usual in the nation’s capital.  “The United States is open for business,” President Obama told a sold-out room at the conference. 

The two-day conference welcomed more than 1,000 attendees from nearly 60 international markets and 47 U.S. states, three U.S. territories, and the District of Columbia. Featured speakers, in addition to the President, included Secretary of Commerce Penny Pritzker, Secretary of State John Kerry, Bill Simon (President and CEO of Walmart U.S.), Parker Harris (Co-Founder of Salesforce.com), and Ludwig Willisch (CEO of BMW North America).  The summit also featured more than 70 high-level speakers covering topics such as workforce development, public-private partnerships through infrastructure investments and exports.

Why is foreign direct investment (FDI) important?  Direct investment in the United States – from foreign or domestic firms – is a critical factor in economic growth and job creation.  In 2012 alone, the U.S. attracted more than $160 billion in foreign direct investment (FDI), making us the world’s top destination for FDI.  In 2011, foreign-owned companies in the U.S.  were responsible for employing 5.6 million U.S. workers. 

Where does California stack up in comparison to other U.S. states?  In April of this year, California Governor Jerry Brown announced more than $1.8 billion in deals making the state number one for attracting FDI.  Foreign-owned companies account for more than 700,000 jobs in the state.

At the conference, President Obama  announced the first-ever comprehensive effort led by the federal government to attract job-creating foreign investment to the U.S. through the expansion and enhancement of the SelectUSA initiative. The initiative seeks to grow FDI as the nation emerges from the recession and becomes an increasingly competitive location for attracting investment due to rising productivity, abundant low-cost energy and rising costs elsewhere.  With the announcement,  regions like San Diego can expect a smart FDI strategy that integrates export promotions, workforce development, innovation cluster creation and land use planning.   Such a strategy will reap the many benefits of international trade and investment—including new better paying jobs, new tax revenues, knowledge spillover and global connectivity. 

What does this mean for San Diego?  San Diego’s active role in    the State of California’s collaborative and coordinated investment promotion efforts is needed to engage and attract future investors;  our partnership with the Brookings Institution on the Metropolitan Export Initiative will create a regional export strategy that will boost the local economy and create jobs; and our ongoing involvement with the Global Cities Initiative to spur and strengthen regional global engagement puts San Diego on track for creating a blueprint for  global competitiveness.


posted by Daichi Pantaleon