Over $20 million awarded statewide creating hundreds of new jobs
SACRAMENTO – Assemblywoman Autumn Burke (D-Los Angeles), today announced that $2.4 million in tax credits was awarded to three local companies – Kite Pharma, Inc., Omni Consulting Services LLC, and Pressure Profile Systems Inc. With the support of the tax credit, the companies will add 238 full time employees in Assembly District 62 through the California Competes Tax Credit program.
“This is a smart, solid investment in our community, and it’s only just the beginning,” said Burke. “Through the California Competes program, we’re not just boosting local companies; we’re creating good jobs and a stronger regional economy.”
The California Competes program was created by legislation in 2013 that shifted $750 million previously slated for California’s Enterprise Zones into a new program designed to ensure the creation of new jobs by encouraging businesses to locate or expand in California, instead of rewarding companies for merely shifting jobs from one area to another.
In addition to the tax credits for job creation, the new program offers sales tax relief on the purchase of research and development equipment for life sciences and manufacturing equipment. The amount of credits available will increase each year until 2018. Twenty-five percent of the credits are reserved for small businesses.
Businesses interested in the program can apply through the Governor’s Office of Business and Economic Development (Go-Biz), which then negotiates the credit before it is approved by the California Competes Committee, which includes the State Treasurer, the Director of the Department of Finance, the Director of Go-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
Over $20 million in tax credits was awarded to California businesses in the 2013-14 fiscal year and over $150 million will be available in the 2014-15 fiscal year.
Assemblywoman Autumn R. Burke represents the 62nd Assembly District, which consists of the cities of Inglewood, Hawthorne, Lawndale, El Segundo, and Gardena as well as the Los Angeles neighborhoods of Westchester, Playa del Rey, Playa Vista, Venice, and parts of Del Rey. Additionally, the 62nd Assembly District includes the unincorporated Los Angeles County communities of Del Aire, West Athens, Lennox, Westmont, and Marina del Rey.