The Governor’s Office of Business and Economic Development (GO-Biz) on April 22 announced $80 million in tax credits that are projected to create more than 4,000 new, full-time jobs in California. The funding, from the California Competes Tax Credit program, will bring more than $1 billion in new investments across the state over the next five years.
“As we continue to move forward to safely and fully reopen our state, incentives like these will help us recover, rebuild and reimagine an economy that works for all Californians,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz. “This program is a critical tool to attract and retain employers who will in turn create good-paying jobs and economic opportunity across the state.”
Relativity Space, an American aerospace manufacturing company headquartered in Long Beach, has committed to create more than 900 jobs in the Central Coast.
“Relativity is excited by California’s support for our continued expansion,” said Caryn Schenewerk, VP Regulatory and Government Affairs at Relativity Space. “The state’s long history of aerospace activities has established a foundation for incredible talent and innovation complimented by a modern, diverse workforce and strong educational systems. As we build an all-American space launch company with massive 3-D printing in our factory of the future, we are creating the jobs of the future and contributing to an equitable economic recovery. Thank you to Governor Newsom and the team at GO-Biz for investing in the innovators who call California home.”
The complete list of approved companies and award amounts is available online along with the video of the committee meeting where award decisions were made.
As part of his 2021-22 State Budget, Governor Newsom proposed sustained investments to preserve California’s competitiveness. The California Jobs Initiative, a $777.5 million proposal, focuses on job creation and retention by, among other proposals, increasing the funding for the California Competes Tax Credit by $90 million to $270 million for fiscal years 2020-21 and 2021-22 and creates a new CalCompetes grant program to support job creation and investments in infrastructure.
Since the start the Newsom Administration, GO-Biz has awarded 115 businesses $442,708,975 in California Competes Tax Credits. In exchange for the credit, these businesses have collectively committed to create 28,905 quality, full-time jobs and make capital investments of $6,513,965,476.
The California Competes Tax Credit was created in 2013 to focus on helping businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance and more. In 2018, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to business each year through 2023.