State Incentives

New Employment Credit (NEC)
The NEC is available for each taxable year between the dates of January 1, 2014 and January 1, 2021. It is available to qualified taxpayers that hire qualified full-time employees on or after January 1, 2014 and pay or incur qualified wages that are attributable to work performed by the full-time employee in a designated census tract or economic development area and receives a tentative credit reservation for the qualified full-time employee.

Requirement
An annual certification of employment is required with respect to each qualified full-time employee hired in a previous taxable year and in order to be allowed a credit, the qualified tax payer must have a net increase in the total number of full-time employees in California. For more information, see the New Employment Credit webpage.

SD Innovation HUB
The new expanded San Diego iHub creates a combined technology corridor which is anchored on the south by San Diego and on the north by the University of California Riverside. This designation reflects the economic advantages of the Twin Cities, including:
  • The highly educated workforce
  • The area’s highly rated schools
  • The quality of life
  • The availability of affordable land and buildings along the freeways for new industrial growth
The iHub initiative allows business, academia, government and venture capitalists to leverage such assets as research parks, technology incubators, universities, federal laboratories in an effort to foster innovation as a local economic development tool.

Manufacturing Sales & Use Tax Exemption
Manufacturers and certain research and developers may be eligible to obtain partial exemption of sales
and use tax on certain manufacturing and research and development equipment purchases and leases.

Conditions
In order to be eligible under this law, there are 3 conditions that must be met:
  • You must be engaged in certain types of business, also known as a “qualified person.”
  • You must purchase “qualified property.”
  • The qualified property that is purchased is utilized for the uses allowed by this law.
The California Competes Tax Credit
The California Competes Tax Credit is an income tax credit that is available to businesses that either would like to come to California or that would like to stay and grow in California. Tax credit agreements will be negotiated by GO-Biz and will be approved by the “California Competes Tax Credit Committee.” Any business can apply for the California Competes Tax Credit and there is no fee to apply. Twenty-five percent of the total credits available each year are reserved for use by small businesses.