CalCompetes Grant

C&I ALERT: New CalCompetes Grant Program Launches in January 2022

C&I Alert - CalCompetes

As part of the State of California’s economic recovery plan, Governor Newsom and the California Legislature allocated $120 million for fiscal year 2021-2022 for a new California Competes Grant Program (CCGP). This program is an addition to the existing California Competes Tax Credit program, which has an allocation of $394 million available for fiscal year 2021-2022.

The California Competes Grant Program provides a cash grant to companies that are looking to expand or relocate to California. To be eligible for this program a project must meet at least one of the three following criteria:

  • Create 500 net new jobs in the State of California
  • Make a significant infrastructure investment requiring construction or renovation expenditures of at least $10,000,000
  • The project is in an economic distressed community as defined by the California Competes Program

This program is designed for companies that would not see a financial benefit from participating in the California Competes Tax Credit program. Examples include:

  • Businesses that continuously reinvest profits, generating either significant research and development tax credits and/or net operating losses resulting in little to no tax liability
  • Smaller sized businesses with relatively low income tax liabilities
  • Startups with little to no tax liability

In evaluating applications, the California Competes Program will consider the following:

  • Number of Jobs Created and Retained
  • Strategic Importance to the State and Region
  • Upskilling and Upward Mobility of Employees
  • Opportunity for Future Growth and Expansion
  • Amount of Investment
  • Other Incentives (in-state and out of state) being considered
  • Compensation paid to Employees
  • Extent of unemployment and poverty in current or proposed site location
  • Return on Investment to the State and Community
  • The commitment the project has to the community and to the State of California
  • The grant’s influence to create jobs and encourage investment

The application period opens on January 3, 2022. The per grant maximum is $36 million per company.  Program guidelines and regulations are to be released in November 2021.

Contact Hickey NOW to take advantage of this program