GO-Biz approved tax credits for 19 LA County businesses in the April CA Competes Tax Credit agreements, announced April 16. LAEDC congratulates these businesses and thanks GO-Biz for this incentive program designed to increase job creation in the state. For a listing of these LA County businesses, scroll down. In total, 94 companies were approved for the tax credit, which would create 13,670 jobs and make $3.2 billion in investments in the State. Of the 94 participating companies who were awarded the tax credits, 19 are based in Los Angeles County, which equates to over $19,000,000 in tax credits.
The California Competes Tax Credit is an income tax credit available to businesses that want to move to California or stay and grow in California. The main goal of the California Competes Tax Credit is to attract and retain high-value employers in California in industries with high economic multipliers and that provide their employees good wages and benefits.
The California Competes Tax Credit is part of the Governor’s Economic Development Initiative (GEDI) which Governor Brown signed legislation to enact in 2013 (AB 93 and SB 90). Since the inception of the program, GO-Biz has awarded 85 companies approximately $60 million to create a projected 10,000 jobs and generate nearly $3 billion in investment across the state. LAEDC welcomed the opportunity to have a voice in the early program design, and we thank GO-Biz for partnering.
GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance and more.
For this fiscal year GO-Biz is authorized to award $151.1 million in tax credits of which 25% ($37.7 million) is reserved for small businesses. GO-Biz made the first allocation of $31 million on January 15th and is scheduled to make additional awards on April 16, 2015 ($75 million) and June 18, 2015 ($31.1 million plus any unallocated amounts from the previous application periods).
LAEDC plays an active role in helping Los Angeles County-based companies in the early stages of the application process for the tax credit. For more information, please contact LAEDC Business Assistance.
Here is the list of LA County businesses which have been announced as Tax Credit recipients in this April round of announcements:
- Northrop Grumman Systems Corporation
Industry: Aircraft Manufacturing
Primary Location(s): Redondo Beach, El Segundo, Palmdale, San Diego, Sunnyvale and Woodland Hills
Net Increase of Full-time Employees: 1,359
Investment: $520,308,000
Amount of Tax Credit: $10,000,000
Link to Tax Credit Agreement: http://bit.ly/NorthropGrummanSystems
- Red Bull North America, Inc.
Industry: Beverage Distribution Headquarters
Primary Location(s): Santa Monica
Net Increase of Full-time Employees: 304
Investment: $31,120,585
Amount of Tax Credit: $1,750,000
Link to Tax Credit Agreement: http://bit.ly/RedBullNorthAmerica
- BlackLine Systems, Inc.
Industry: Custom Accounting Software Provider
Primary Location(s): Woodland Hills
Net Increase of Full-time Employees: 454
Investment: $12,235,000
Amount of Tax Credit: $1,100,000
Link to Tax Credit Agreement: http://bit.ly/BlacklineSystems
- The Gill Corporation
Industry: Fabricated Metal Product Manufacturing
Primary Location(s): El Monte
Net Increase of Full-time Employees: 328
Investment: $56,170,000
Amount of Tax Credit: $1,000,000
Link to Tax Credit Agreement: http://bit.ly/TheGillCorporation
- Viacom International Inc.
Industry: Motion Picture and Video Production
Primary Location(s): Burbank and Los Angeles
Net Increase of Full-time Employees: 56
Investment: $56,215,000
Amount of Tax Credit: $1,000,000
Link to Tax Credit Agreement: http://bit.ly/ViacomInternational
- Composites Horizons, LLC
Industry: Aerospace Product Manufacturing
Primary Location(s): Covina
Net Increase of Full-time Employees: 387
Investment: $25,900,000
Amount of Tax Credit: $975,000
Link to Tax Credit Agreement: http://bit.ly/CompositesHorizons
- Noribachi Corporation
Industry: Electric Lighting Fixture Manufacturing
Primary Location(s): Harbor City
Net Increase of Full-time Employees: 1,495
Investment: $16,250,000
Amount of Tax Credit: $750,000
Link to Tax Credit Agreement: http://bit.ly/Noribachi
- Alibaba.com, Inc.
Industry: Online Marketplace
Primary Location(s): San Mateo, Chico, Los Angeles and San Francisco
Net Increase of Full-time Employees: 140
Investment: $12,000,000
Amount of Tax Credit: $560,000
Link to Tax Credit Agreement: http://bit.ly/Alibabadotcom
- U.S. Corrugated of Los Angeles, Inc.
Industry: Corrugated and Solid Fiber Box Manufacturing
Primary Location(s): Santa Fe Springs
Net Increase of Full-time Employees: 100
Investment: $33,000,000
Amount of Tax Credit: $500,000
Link to Tax Credit Agreement: http://bit.ly/USCorrugated
- Kinkisharyo (USA), Inc.
Industry: Light Rail Vehicle Manufacturing
Primary Location(s): Palmdale
Net Increase of Full-time Employees: 103
Investment: $12,000,000
Amount of Tax Credit: $417,600
Link to Tax Credit Agreement: http://bit.ly/Kinkisharyo
- Honeywell International, Inc.
Industry: Aerospace Product and Parts Manufacturing
Primary Location(s): Torrance
Net Increase of Full-time Employees: 56
Investment: $48,251,306
Amount of Tax Credit: $250,000
Link to Tax Credit Agreement: http://bit.ly/HoneywellInternational
- Red Hat, Inc.
Industry: Custom Computer Programming Services
Primary Location(s): Mountainview, Los Angeles and San Francisco
Net Increase of Full-time Employees: 58
Investment: $2,800,000
Amount of Tax Credit: $170,000
Link to Tax Credit Agreement: http://bit.ly/RedHatInc
- Lusive Decor
Industry: Electric Lighting Fixture Manufacturing
Primary Location(s): Los Angeles
Net Increase of Full-time Employees: 62
Investment: $5,850,000
Amount of Tax Credit: $148,000
Link to Tax Credit Agreement: http://bit.ly/LusiveDecor
- Pro-Tech Design & Manufacturing, Inc.
Industry: Medical Device Design and Manufacturing
Primary Location(s): Santa Fe Springs
Net Increase of Full-time Employees: 78
Investment: $1,550,000
Amount of Tax Credit: $125,000
Link to Tax Credit Agreement: http://bit.ly/Pro-Tech
- Senior Operations LLC
Industry: Aircraft Engine Manufacturing
Primary Location(s): Burbank
Net Increase of Full-time Employees: 343
Investment: $1,578,000
Amount of Tax Credit: $100,000
Link to Tax Credit Agreement: http://bit.ly/SeniorOperations
- Citizen Watch Company of America, Inc.
Industry: Jewelry and Watch Manufacturing
Primary Location(s): Torrance
Net Increase of Full-time Employees: 5
Investment: $3,800,000
Amount of Tax Credit: $35,000
Link to Tax Credit Agreement: http://bit.ly/CitizenWatchCo
- Varedan Technologies, LLC
Industry: Semiconductor Engineering Services and Manufacturing
Primary Location(s): Torrance
Net Increase of Full-time Employees: 31
Investment: $480,000
Amount of Tax Credit: $620,000
Link to Tax Credit Agreement: http://bit.ly/Varedan
- EntroGen, Inc.
Industry: Diagnostic Test Manufacturing
Primary Location(s): Woodland Hills
Net Increase of Full-time Employees: 15
Investment: $2,500,000
Amount of Tax Credit: $320,000
Link to Tax Credit Agreement: http://bit.ly/Entrogen
- Du Fu Engineering LLC
Industry: Industrial Machinery Manufacturing
Primary Location(s): Rancho Palos Verdes
Net Increase of Full-time Employees: 5
Investment: $0
Amount of Tax Credit: $100,000
Link to Tax Credit Agreement: http://bit.ly/DUFUEngineering