The California Competes Tax Credit remains one of the few incentives that we have available to incent businesses that are considering whether to come, stay or expand in California. The merit-based, flexible incentive has created many thousands of jobs in California. Read LAEDC’s letter of support below.
Take action! Contact the chairs of the committees to express your support; in Senator Mitchell’s office ([email protected]) and in Assemblymember Ting’s office ( [email protected]) and at GO-BIZ ([email protected] )
April 6, 2018
The Honorable Holly Mitchell The Honorable Richard Roth
Chair, Senate Budget Committee Chair, Senate Budget Subcommittee 4
State Capitol, Room 5019 State Capitol, Room 5019
Sacramento, California 95814 Sacramento, California 95814
The Honorable Philip Ting The Honorable Jim Cooper
Chair, Assembly Budget Committee Chair, Assembly Budget Subcommittee 4
State Capitol, Room 6026 State Capitol, Room 6025
Sacramento, California 95814 Sacramento, California 95814
Re: Reauthorization of the California Competes Tax Credit Program – SUPPORT
Dear Chairs Mitchell, Roth, Cooper and Ting:
On behalf of the Los Angeles County Economic Development Corporation (LAEDC), an organization whose purpose is to advance equitable opportunity and prosperity for all, please accept this letter in strong support of the renewal of the California Competes Tax Credit program in Governor Brown’s 2018-19 budget.
Since 1996, my organization – through its award-winning, internationally-recognized Business Assistance Program – has helped to retain or attract thousands of businesses supporting more than 225,000 annual jobs in Los Angeles County with an estimated labor income, including wages and benefits, of more than $11.2 billion. With the elimination of the California Enterprise Program in 2013, the California Competes Tax Credit remains one of the few incentives that my organization – along with the myriad others like it across the state – has at its disposal to incent businesses that are considering whether to come, stay or expand in California. From our decades of experience working on-the-ground with small-, medium- and large-size businesses, we know that when firms compare California to lower-cost locations, such as Arizona, Nevada, Texas and the Southeastern United States, cost offsets play a major role in improving our state’s competitive profile and our chances of keeping or attracting these businesses, along with jobs, wages and investments they bring.
As important, the California Competes Tax Credit program is performance-based, which means that businesses may claim the tax credit only if they meet certain investment and hiring targets set forth in written agreements negotiated with the Governor’s Office of Business and Economic Development (GO-Biz). Accordingly, the benefits of the program are limited not only to the individual businesses, but they spillover onto the economy writ large as credit awardees meet these negotiated employment and/or project investment requirements.
For all of the above reasons, the LAEDC respectfully requests that the California Competes Tax Credit program be reauthorized at the Governor’s 2018-19 budget proposed level of $180 million per year for another five years, helping California improve its cost competitiveness for businesses evaluating the state.
Please do not hesitate to contact me should you have any questions and/or comments.
Sincerely,
David Flaks
President & COO,
Los Angelss County Economic Development Corporation (LAEDC)
CC:
Assembly Member William Brough
Assembly Member Anna Caballero
Assembly Member David Chiu
Assembly Member Steven Choi, Ph.D.
Assembly Member Jay Obernolte
Panorea Avdis, Director, GO-Biz