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LAEDC supports funding of California Competes Tax Credit to retain & expand jobs

By February 1, 2021 No Comments

February 1, 2021

The Honorable Wendy Carrillo

Chair, Assembly Budget Sub-Committee #4

State Capitol, Room 6026

Sacramento, California 95814

 

RE: California Competes Tax Credit Funding – SUPPORT

 

Dear Chair Carrillo:

The Los Angeles County Economic Development Corporation (LAEDC), as a champion and catalyst for an equitable, sustainable and resilient economy, Supports Governor Newsom’s proposed budget proposals for California Competes, which would:

  • Increase by $180 million over two budget years the allocations of tax credits to the program, and
  • Establish a one-time $250 million grant allocation to provide additional flexibility to assist those employers when tax credits are less beneficial.

As you know, demand for the successful California Competes tax credit allocations has been much greater than available funding. The business interest in this program and our own experience working with businesses demonstrates the importance of this tax credit as a necessary tool to incentivize and reward the retention and expansion of well-paying jobs in California.

Since the elimination of local redevelopment agencies and enterprise zones during past years, California has been left with very few tools that help attract, expand and retain businesses and jobs in an increasingly challenging economy. California Competes, along with other programs at the Governor’s Office of Business and Economic Development, are now the state’s most compelling remaining economic development tools.

Given the damage done by the pandemic to our state’s economy, industries and workforce, and the increasing level of competition amongst other states and regions around the country to attract and retain businesses to help with their own recoveries from the pandemic-induced shocks to their economies, the LAEDC appreciates the Governor’s efforts to expand funding for our own state’s recovery and economic development activity and fully supports this budget proposal. We urge its adoption by the State Legislature.

Sincerely,

William C Allen

President & CEO

LAEDC

 

cc: Dee Dee Myers, Deputy, Governor’s Office of Business & Economic Development

Assemblymember Phil Ting, Chair, Budget Committee

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