The State of California offers several programs to help businesses grow in the state. For more information please visit California Business and Economic Development. 


state incentives


California competes tax credit

The California Competes Tax Credit (CCTC) is a nonrefundable, nontransferable income tax credit available to businesses that want to locate in California or existing California businesses that want to stay and grow in the state. The CCTC is awarded to individual businesses through a competitive application process a specific time throughout the year.


New Employment credit

This credit is for employers that hire qualified full-time employees, pay wages for work performed by that employee in a designated geographic area (DGA) and follow all proper reporting and filing requirements for the credit. The employer must also have a net increase in jobs and must pay qualified wages. 


REsearch & development tax credit

The California Research & Development (R&D) tax credit program reduces state income tax. A business may qualify for the credit if it paid for or incurred qualified research expenses while conducting qualified research activity in California conducted by the company or a third-party contractor.


Partial Sales & Use tax exemption for manufacturing

The partial exemption applies only to the state sales and use portion of the tax. Companies are those engaged in manufacturing, processing, refining, fabricating or recycling or for companies engaged in R&D for either biotechnology or physical, engineering and life sciences.


advanced transportation & manufacturing full sales & use Tax exemption

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides a full sale and use tax ex­clusion for advanced manufacturers and manufacturers of alternative source and advanced transportation products, components or systems.


employment training panel

The Employment Training Panel (ETP) provides funding to employers to assist in upgrading the skills of their workers. ETP uses a pay-for-performance contract to provide a specific, fixed-fee cash reimbursement for the costs of employer-customized, job-specific skills training conducted by the company.