California Competes Tax Credit

 

 

California Announces Tax Credit Application for Businesses

 

The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that plan to locate or expand in California and create quality, full-time jobs that might not otherwise be created by the applicant or any other business.

While there are no sector-specific restrictions, special consideration will be given to businesses within the “strengthen” and “accelerate” sector categories listed below.

Strengthen: Creative Economy, Manufacturing, Financial & Professional Services, Tourism & Outdoor Recreation, Working Lands & Water, Transport & Logistics

Accelerate: Aerospace & Defense, Clean Economy, Life Sciences, Working Lands & Water, High-Tech

 

Application Periods: A total of $922,694,691 in California Competes Tax Credit is available for allocation in the 2025-2026 fiscal year. Applications for the California Competes Tax Credit will be accepted online at calcompetes.ca.gov during the following periods:

1. July 21, 2025, through August 11, 2025 ($308 million in tax credits available)
2. January 5, 2026, through January 26, 2026 ($308 million in tax credits available)
3. March 2, 2026, through March 16, 2026 ($306.6 million in tax credits available plus any remaining unallocated amounts from the previous application periods)