November 12, 2021

CalCompetes has added a new grant program in the state’s 2021/2022 budget. $120 million in funding is available, with individual awards up to $36 million. The application period opens January 3 and closes January 24. This is a great opportunity for companies that typically would not be able to take advantage of a tax credit or are looking for funding that is more easily monetized.  CalCompetes grants will be awarded competitively based on the evaluation criteria below.

Priority companies for CCGP

A significant priority for this grant program is to make resources available to businesses for whom a non-refundable tax credit would not provide a significant financial benefit.

Available funding

A total of $120 million is available. The authorizing legislation for this program sets a maximum grant request of 30% of the total amount available. Applications are subject to a minimum request of $5 million and a maximum request of $36 million.

Eligibility and evaluation criteria

Eligible applicants must meet at least one of the following criteria:

  1. Create 500 new, full-time equivalent jobs (at least 35 hours per week)
  2. Make $10 million in construction or renovation investment over five years
  3. Create jobs or make investments in high-poverty or high-unemployment area

The CCGP was specifically created for three types of businesses:

  1. 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
  2. Smaller businesses with relatively low tax liabilities
  3. Startups with little to no tax liability

Companies will be evaluated based on:

  • Number of jobs created or retained
  • Compensation paid to employees
  • Amount of investment
  • Duration of proposed project and commitment to remain in the state
  • Extent of unemployment or poverty in business area
  • Extent the benefit to the state exceeds the amount of grant
  • Incentives available in other states
  • Opportunity for growth and expansion
  • Other incentives available in California
  • Overall economic impact
  • Strategic importance to the state, region or locality
  • Training opportunities offered to employees
  • The extent to which the grant will influence the applicant’s ability and/or willingness to create new full-time jobs in California that might not be created by the applicant or another California business

The CCGP was specifically created for three types of businesses:

  1. 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
  2. Smaller businesses with relatively low tax liabilities
  3. Startups with little to no tax liability

Want more information? Connect with an Ashmore Consulting advisor today.

 

 

 

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or other tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.