Sid Voorakkara
California Governor’s Office of Business
and Economic Development (GO-Biz)
San Diego Regional Office
What is GO-Biz
- State’s Lead for Job Creation and Economic
Development Efforts
- Governor Brown’s Jobs Team
- CA’s Statewide Retention, Expansion and
Relocation Team
- International Trade and Investment Lead
- Innovation and Entrepreneurship Lead
GO-Biz Organization
Includes:
- California Competes Tax Program
- Permit Assistance Unit
- California Film Commission
- Infrastructure and Economic Development
Bank (iBank)
- CA-China Office of Trade and Investment Shanghai
California Economy
U.S. Leader in Job Creation:
- CA added more private sector jobs in 2013
than any other state incl. TX. (319K)
- #3 State for Job Growth
- 8.0 % unemployment – 5 year low
- Recovered 97.7 % of jobs lost
- 7th Largest Economy in the World
PRIORITIES FOR 2015
- Improving the Business Climate
- Accelerating Regulatory Modernization
- Applying Economic Tools (GEDI)
- Expanding International Presence
- Integration of Economic Development and
Workforce Development
- Addressing California’s Uneven Recovery
ECONOMIC TOOLS
- Governor’s Economic Development Initiative:
- Sales and Use Tax Exemption (4.19%)
- New Employee Hiring Credit
- CA Competes Program
- Permitting Rules and Regulations
Permitting Unit
- CalGOLD On-line Permit Assistance Tool
www.calgold.ca.gov
- Business Assistance Resource Guide for
Environmental Permitting
- Consolidated Permitting
- Standardized Regulatory Impact
Assessment (SB 617)
Hiring Credit
- Effective January 1, 2014
- Qualified Wages between $13.50 and $31.50 per hour
- 35% of Qualified Wages for 60 months of employment
- Qualified Employees
- 6 mos. Unemployed
- Transitioning servicemembers
- Persons receiving EITC
- Formerly Incarcerated Individuals
- Recipients of CalWorks or general assistance
- Employee must work in a qualified Designated Geographic Area
California Competes Program
• Credit against the income tax due the
Franchise Tax Board
• 6 tax year carryover
• Credit can offset Alternative Minimum Tax
Accountability:
• Tied to achieving contractual (hiring /
investment) milestones
• Recapture provisions
California Competes Program
Credit Awards Are Based on 11 Factors:
• Number of jobs created or retained
• Compensation Paid to Employees
• Amount of investment
• Extent of unemployment or poverty in
business area
• Other incentives available in California
• Incentives in other states
California Competes Program
Credit Awards Are Based on 11 Factors:
• Duration of proposed project and duration of
commitment to remain in state
• Overall economic impact
• Opportunity for future growth
• Strategic importance to state and local
economy
• Extent the benefit to the state exceeds the
amount of the tax credit
IMPORTANT UPCOMING DATES
- January 23rd: Cal Competes Workshop
- February 2nd: APPLICATION CLOSES
- $75M in Tax Credits Available
http://business.ca.gov
WORKFORCE DEVELOPMENT
- Integration of Economic Development and
Workforce Development
- ‘Slingshot’ Initiative = Accelerate California’s
economic engine through collaborative
efforts by education, economic development,
and workforce
- Creating regionally-driven solutions to
regionally-identified problems
Sid Voorakkara
California Governor’s Office of Business
and Economic Development (GO-Biz)
(619) 688-3354