TAX INCENTIVES

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

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