State Awards $44M in Tax Credits to Companies Promising More Jobs
The "California Competes" tax credits go to 89 companies adding more than 7,000 jobs in California and generating more than $600M in investment. Of note were:
- NerdWallet (S.F. HQ shown above): $3.25M tax credit, 792 new jobs, $18.3M investment;
- Credit Karma: $2.8M tax credit, 795 new jobs, $27.7M investment;
- Stripe Inc: $2.5M tax credit, 1,031 new jobs, $37.5M investment.
Aetna Health, which received $700k in tax credits for 225 new jobs at a service center in Fresno, says it most likely would have placed those new jobs in another state without the tax credits.
This was the second round of $200M in tax credits the state plans to award this fiscal year. In June, Tesla Motors received the largest amount so far at $15M in tax credits. The next round is scheduled for January.
Last fiscal year, the California Competes Tax Credit committee awarded about $150M in tax credits to 212 companies that plan to create more than 35,000 jobs and make more than $9.1B in investments. Recipient companies have to meet annual milestones for investment and job creation.
The committee also voted to rescind three previously awarded tax credits (worth a total of $840k) to Lynda.com, Health One Pharmaceuticals and Animal Memorial Service due to changing business plans (such as LinkedIn's purchase of Lynda.com).
