Page 22 - FDI Alliance International Magazine, July 2019 Interactive Issue_Neat

GOVERNOR
GAVIN NEWSOM

STATE OF

CALIFORNIA

Today, California is the 6th largest economy in the world What is the California Competes Tax Credit Program? immediately think about California’s culture of
and continues to lead the nation in several key metrics, For businesses planning job growth and investment, innovation. But that spirit of innovation is not just found
including: job growth, foreign direct investments and the California Competes Tax Credit program provides among the California based companies that have
venture capital deals. In addition, California has the a credit against current and future tax liability based become household names and products known around
largest corporate tax credit program in the country, the on a company’s projected net new jobs and capital the world, but also in sectors as diverse as manufacturing
largest film credit, the largest tourism marketing budget investments in each year over a five year period. Since and agriculture. Right now, companies, government
and was the first state to offer online applications for 2014, GO-Biz has allocated $555.3 million to 775 and academia are working together to develop new
business incentives. companies projected to create 77,178 new jobs and technologies that reduce water or energy consumption
Moreover, Governor Brown’s climate action and make $14.5 billion in new investments. There are no from irrigation equipment to zero emission vehicle
sustainability goals are spurring innovation in emerging restrictions on the size of companies or the geographic production. This triple helix model of collaboration
technologies that will reduce greenhouse gas emissions location where they intend to do business. Additionally, is taking place through the GO-Biz led iHubs that
and energy consumption while laying the foundation the program sets aside 25% of available credits in a act as incubators for entrepreneurs and innovators
for California’s ‘green’ economy. fiscal year for companies with revenue under $2 million looking for supports that will lead them from idea to
during the base tax year of when they apply for the credit. commercialization. The iHubs present an opportunity for
Leading California’s activities to encourage private sector those inside and out of California to align their interests
attraction and expansion is the Governor’s Office of For investors or businesses abroad, the GO-Biz with a broad set of stakeholders in a specific region to
Business and Economic Development (GO-Biz). GO- International Affairs unit oversees activities related meet shared objectives.
Biz is the one-stop shop for investors, businesses, site to the Governor’s international business and trade
selection consultants and all economic development investment MOUs. These MOUs provide the framework These are only a snapshot of the opportunities and
stakeholders interested in accessing resources or for bilateral cooperation ensuring businesses, investors, resources that California has to offer. When combining
learning more about financing opportunities and researchers and educators have the resources and California’s economic development incentives, broad
incentives in California. contacts they may need to build partnerships that reach on a global scale, and culture of innovation
will lead to economic opportunities. As mentioned with California’s top ranked colleges and universities,
The list of services offered at GO-Biz ranges from above, California remains the number one state for which attract the highest performing students around
navigating federal, state and local incentives and attracting foreign direct investments and as of 2016, the world and are cultivating early stage research and
permit requirements; connecting foreign investors with internationally based companies employed 561,000 development, it is hard to find a place better prepared
California projects; overseeing the state’s 14 Innovation California workers and were responsible for 4.6 percent and equipped to meet the demands of a growing and
Hubs (iHubs); and managing the state’s highly successful of the state’s total private-industry workforce. highly evolving international market place.
California Competes Tax Credit program. When talking about the California story most people

22 FDI ALLIANCE | JULY ISSUE 2019