Tax Incentives

State Tax Credits

California Competes Tax Credit (CCTC)

Income tax credit available to businesses that want to located in California or stay and grow in California
Maximum tax credit award is up to 20% of the total amount allotted for the fiscal year
Governor’s Office of Business and Economic Development (GO-Biz)
(916) 322-4051

Film & Tv Soundstage Credit 3.0

High Road Cannabis Tax Credit

Qualified cannabis businesses may receive a tax credit of 25% of their qualified expenditures in the taxable year
Maximum tax credit award is $ 250,000
California Franchise Tax Board
ftbcannabis@ftb.ca.gov

Hybrid & Zero Emmission Truck & Bus Incentive (HVIP)

State voucher program for businesses purchasing hybrid and zero emission trucks and buses
Vouchers vary per vehicle type
California HVIP
info@californiahvip.org
(888) 457-4847

Homeless Hiring Tax Credit

Tax credit for qualified businesses hiring individuals currently experiencing homelessness as certified by Continuum of Care programs and community-based service providers
Tax credit award varies from $ 2,500 – $ 10,000 per eligible employee for maximum award of $ 30,000,000 per year
California Franchise Tax Board
ftbhhtc@ftb.ca.gov
(800)852-5711

Industrial Development Bonds: Pollution Control & Manufacturing (State Treasurer)

Offers tax-exempt financing for projects which involve a pollution control facility and also feature a manufacturing component
Maximum bond amount is subject to tax-exempt allocation
California State Treasurer
cpcfabond@treasurer.ca.gov
(916) 654-5610

Industrial Development Bonds (IDB) (Ibank)

Offers tax-exempt financing for qualified manufacturing and processing companies for the construction or acquisition of facilities and equipment. IDBs allow private companies to borrow at low interest rates normally reserved for state and local governmental entities
Maximum bond amount is $ 10,000,000
California Infrastructure and Economic Development Bank
bondunit@ibank.ca.gov
(916) 341-6600

New Employment Tax Credit

Corporate income tax credit equal to 35% of wages (above $15/hr and below $35/hr) in the first five years of employment (up to $56,000) per eligible employee
California Franchise Tax Board
(916) 845-3464
gedi@ftb.ca.gov

Partial Sales & Use Tax Exemption: Diesel Fuel

Partial Sales & Use tax exemption for the sale, storage, use, or other consumption of diesel fuel used in farming activities or food processing
Sales & Use tax exemption of 5%
California Franchise Tax Board
(800) 400-7115

Partial Sales & Use Tax Exemption: Teleproduction

Partial Sales & Use tax exemption for the sale, storage, use or other consumption of machinery, equipment including component parts to a qualified person used primarily in teleproduction or other postproduction services. The exemption also includes other qualified uses and expenditures, visit the website for the full list
Sales & Use tax exemption of 5%
California Franchise Tax Board
(800) 400-7115

Partial Sales & Use Tax Exemption: Manufacturing, Research, & Development

Partial Sales & Use tax exemption for the purchase or lease of qualified machinery and equipment primarily used in manufacturing, research and development, and electric power generation or production, storage or distribution
Sales & Use tax exemption of 3.9375%
California Franchise Tax Board
(800) 400-7115

Partial Sales & Use Tax Exemption: Farm Equipment and Machinery

Partial Sales & Use tax exemption for the sale, storage, use, or other consumption of farm equipment, machinery, and their parts to qualified persons for use in qualifying activities
Sales & Use tax exemption of 5%
California Franchise Tax Board
(800) 400-7115

Partial Sales & Use Tax Exemption: Timber Harvest

Partial Sales & Use tax exemption for sales and purchases of equipment, machinery and their parts designed primarily for off-road use in commercial timber harvesting operation by a “qualified person”. The partial exemption also applies to leases of off-road commercial timber harvesting equipment and machinery subject to tax measured by rentals payable
Sales & Use tax exemption of 5%
California Franchise Tax Board
(800) 400-7115

Research & Development Tax Credit (R&D)

State tax credit for qualified businesses conducting eligible research and development activities
Maximum tax credit is $ 5,000,000
California Franchise Tax Board
(800) 852-5711