California offers a number of incentives for life sciences companies to successfully establish and grow in the state.
California State Incentives
- The California Competes Tax Credit
An income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements will be negotiated by GO-Biz and approved by a statutorily created “California Competes Tax Credit Committee,” consisting of the State Treasurer, the Director of the Department of Finance, the Director of GO-Biz, one appointee each by the Speaker of the Assembly and Senate Committee on Rules. Learn more.
- Sales and Use Tax Exemption for Manufacturing
A partial exemption of sales and use tax on certain manufacturing biotechnology and research and development equipment purchases. The partial exemption applies only to the state sales and use tax rate portion, currently at 4.1875 percent. The exemption does not apply to any local, city, county, or district tax. All manufacturers (NAICS Codes 3111 – 3399, inclusive), Research and Development in Biotechnology and Research and Development in the Physical, Engineering, and Life Sciences (NAICS Codes 541711 and 541712, respectively). Learn more.
- New Employment Hiring Tax Credit (NEC)
The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, to a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area, and that receives a tentative credit reservation for that qualified full-time employee. Learn more.
- California Research & Development Tax Credit
Corporate income tax credits available to companies that have incurred qualified research expenses in California. A taxpayer qualifies for the credit if it paid or incurred qualified research expenses while conducting qualified research in California. The taxpayer may receive up to 15 percent of the excess of current year research expenditures over a computed base amount. Learn more.
- Relocation & Expansion services
The California Business Investment Services Unit provides no-fee, tailored site selection services to employers, corporate real estate executives, and site location consultants who are considering California for relocation and/or expansion.
- The Employment Training Panel (ETP)
A direct training subsidy is available to businesses in California’s advanced manufacturing sectors. The ETP provides this subsidy to off-set the high cost of training employees in businesses supporting job creation and business attraction, retention, and expansion, as well as the retention of workers in the State. The ETP is a funding agency and is not a training agency – businesses determine their own training needs and how to provide training. The Panel uses an application process for those seeking funds. Learn more at www.etp.ca.gov.
A wide array of consultation services are offered, including:
- Financial assistance and loan programs
- Labor availability and education information
- State and local permit assistance
- Transportation and infrastructure information
- Information on tax credits and other incentive programs
- Economic and demographic data