Laws of attraction.

• Author: Reynolds, Bob
• Position: Taxicentives - Managing tax credits

to a list that includes Toyota, Schwab and Nestle. we can add Tesla. California couldn't compete with the tax breaks, regulatory easing and other incentives Nevada offered and lost the bidding war for Tesla's so-called gigafactory. which would have created some 6.500 new jobs in California. Tesla's decision underscored Gov. Brown and the state Legislature's continued struggle to lure corporations to establish or expand operations in California.

It also dealt another blow to a state still woozy Iron) We lingering effects of the recession. While many areas of California have recovered, a number of communities aren't there yet. According to the U.S. Bureau of Labor Statistics, California--with a 7.4 percent unemployment rate as of July--ranks 44th worst in the nation.

Businesses are also feeling the pinch as many lack sufficient access to capital and bind themselves having to spend time and money complying with the often complex requirements of doing business in the state.

But the new, isn't all bad. California continues to seek ways to draw in businesses and strengthen its jobs picture. One of the key tools it has introduced u) help it do so is the California Competes Tax Credit (CCTC).

Opportunity Knocks

Part of the Governor's Office of Business and Economic Development (GO-Biz) this initiative consists of an awarded credit that offsets California state income or fianchise tax. It's designed to help businesses continue or expand awn. operations in the state and encourage out-of-state businesses to move to California.

The credit is available to any size company in any industry, with no boundary restrictions anywhere within California. Each fiscal year through 2017-18, the CCTC Committee will have up to $200 million to award.

The CCTC is an agreement negotiated by applicants or their representatives with GO-Biz. It's then approved or rejected by the CCTC Committee, which includes the state treasurer, the director of the Department of Finance. the direct, of GO-Biz, a person appointed by the Calilornia Senate and a penson appointed by the California Assembly. The latter two appointees cannot be mumbers of the Senate of Assembly.

or the aggregate amount of tax credits available each fiscal year. 25 percent is reserved It small businesses. For the purposes of the credit, a small business IS (skilled as one that had less than $2 million in gross income ill I he prior Year. Any credit amount not 'd during the application period will carry over to...