CALIFORNIA – Governor Gavin Newsom announced, November 17, that California awarded more than $140 million in CalCompetes grants and tax credits — creating nearly 6,000 full-time jobs. The next application period for the program opens January 2, 2024.
For this funding round, the program awarded four companies a total of $33.8 million in tax credits and $110 million in grants to eight companies. The California Competes committee also noted that over $72 million tax credits were recaptured from 43 companies for breach of contract or other reasons.
AI, electric vehicle batteries, and semiconductors
The Governor’s Office of Business and Economic Development’s (GO-Biz) says that CalCompetes awards will bring in an estimated $1.3 billion in private investment over the next five years.
They say the funding is going to companies expanding their operations in California and advancing the state’s semiconductor manufacturing capabilities, building the next generation of electric vehicles and electric aircrafts, and more.
- Snapchat received a $20 million grant to advance their manufacturing capabilities for their augmented reality devices. The company will add 508 jobs.
- R. Torre & Company, a flavored syrups and sauces manufacturer, received a $4.8 million tax credit. They will create 151 jobs.
- Sparkz, a lithium iron phosphate battery manufacturer, received an $11.2 million grant to create 500 new, full-time jobs and make over $83 million in capital investments in Rancho Cordova.
- AIBOT US, Inc. received a $15 million grant to further its manufacturing and R&D capabilities in Long Beach and Mojave as it continues developing artificial intelligence software and building autonomous electric aircrafts. In exchange, they will create almost 700 new jobs and invest nearly $500 million across the two locations.
- Tynergy received a $15 million grant to relocate its headquarters from Wyoming to Fresno, where they will manufacture semiconductors and energy storage systems. In the process, they will create at least 500 new, full-time jobs.
The CalCompetes Program awards tax credits to help businesses grow and stay in California.
A tax credit is a dollar-for-dollar amount taxpayers claim on their tax return to reduce the income tax they owe.
The CalCompetes Grant program prioritizes resources to businesses who cannot take advantage of a non-refundable tax credit.
Applications are accepted three times during the fiscal year. Prior to each application period, GO-Biz hosts online webinars that consist of a 45-minute presentation, followed by a question and answer session.
For more information on the CalCompetes funding visit https://business.ca.gov/california-competes-tax-credit/