California Competes Tax Credit and Grant Program

California offers a competitive incentive program called California Competes, which provides tax credits and grants to companies that are expanding within the state or considering relocation. The program targets businesses that can demonstrate significant job creation and long term investment. While California has a high cost operating environment, this program helps offset that cost for qualifying companies.

Applicants must provide detailed hiring plans, capital investments, and financial projections. California uses a points based evaluation system that emphasizes job quality, wage levels, and strategic value. Companies must also demonstrate readiness, meaning they have clear timelines and a defined execution plan.

Unlike many programs, California Competes allows for both tax credits and structured grants. This gives companies more flexibility in how they structure their financing. It also allows projects with high strategic value to receive meaningful support even if tax exposure is limited.

California favors industries that advance innovation, sustainability, and technology driven growth. Companies in clean energy, advanced manufacturing, and technology services often see strong results when applying for the program.