07.11.14 |
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California Competes Credit: The Next Chapter

Cali next chapter resizeOn June 30th, 2014, the State of California, along with the Governor’s Office of Economic Development (GO-Biz), released a notice providing an update on the California Competes Tax Credit.[1]

Included in this update were the commencement and end dates for three (3) application cycles in Fiscal Year 2014-2015, as well as the accompanying tax credit allocations.

Interestingly, while there is a $45 million tax credit allocation for the first application cycle, the timeframe for submitting applications is marked as ‘To Be Determined’. Upon finalizing permanent regulations for the tax credit, the State will make a formal announcement as to when it will begin accepting applications for the new fiscal year. Specific to finalizing the regulations, the State has yet to offer guidance as to when that will occur.

While the dates for the initial application cycle have not been set, the second and third cycles are scheduled as follows:

  • January 5th, 2015 through February 2nd, 2015:                     $75 million allocation
  • March 9th, 2015 through April 6th, 2015:                                  $30 million allocation

ADP will communicate the time frame for the initial cycle as soon as the information is made available by the State.

Along with filing dates, the State and GO-Biz have announced dates for the California Competes Tax Credit Committee hearings:

  • January 15th, 2015
  • April 16th, 2015
  • June 18th, 2015

At these hearings, the Committee will review tax credit applications and make a recommendation as to formal approvals, or denials, of tax credits.

Lastly, with the permanent regulations pending, it is not yet known how many, if any, changes will be incorporated into the tax credit applications and corresponding qualification documents. The notice did offer confirmation that the application process will continue to utilize an online template.

ADP will continue to closely monitor communications from the State of California so as to remain out in front of upcoming deadlines and to stay apprised of any pertinent changes or modifications to the tax credit program.

 



[1] California Governor’s Office of Business and Economic Development (GO-Biz) Memorandum, June 30, 2014; http://www.business.ca.gov/Portals/0/CA%20Competes/Docs/Notice%20California%20Competes%20Tax%20Credit%20%2006-30-14.pdf

 


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