California Code of Regulations › Title 10 - Investment › Chapter 13 - Governor's Office of Business and Economic Development › Article 1 - California Competes Tax Credit › Section 8030 - Application Process for Tax Credit Allocation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In the event the director announces at
				the beginning of a fiscal year that applications must be submitted online,
				applicants shall create a login and password as designated on the
				website.
(b) Applicants shall be
				asked to provide some or all of the following information as directed on the
				application form, which may be divided into multiple phases:
(1) Applicant or entity name (legal name and
				any other doing business as names), including the type of legal
				entity;
(2) State of incorporation
				or organization, if applicable;
(3)
				Entity Identification Number: California Corporation Number, California
				Secretary of State Entity Identification Number, Federal Employer
				Identification Number, Social Security Number;
(4) Contact information (address, contact
				person(s), one of which must be the applicant or an employee of the applicant
				and one of which must be designated as the primary contact person, phone
				numbers, e-mail address); phone numbers, e-mail address);
(5) Amount of California competes tax credit
				requested;
(6) Proposed timeframe
				for when applicant would like the California competes tax credit to be provided
				(i.e. over which taxable years the credit would be allowed);
(7) Disclose whether the applicant's
				worldwide gross receipts in its taxable year prior to its current taxable year
				were greater than zero and less than 15 million dollars, 15 million dollars or
				greater, or if the applicant had no gross receipts;
(8) Consultant, attorney, tax practitioner or
				any other third party (hereinafter referred to collectively as "consultant")
				preparing or submitting the application, or providing any services related to
				the credit, name and contact information (address, contact person, phone
				numbers, e-mail address), if applicable;
(9) Consultant company Identification Number,
				if applicable: California Corporation Number, California Secretary of State
				Entity Identification Number, Federal Employer Identification Number, Social
				Security Number;
(10) Describe
				consultant cost of services fee structure and disclose whether payment to
				consultant is influenced by whether a credit is awarded;
(11) Cost of services for
				consultant;
(12) Identify parent
				company, if applicable;
(13)
				Identify whether applicant is publicly traded;
(14) Identify affiliated corporations as
				defined in Internal Revenue Code section
				1504, if applicable;
(15) If the applicant has an affiliated
				corporation, identify the percentage of the affiliated corporation owned by the
				applicant, or the percentage of the applicant owned by its affiliated
				corporation;
(16) Names of any
				person authorized by applicant to communicate with GO-Biz and contact
				information (address, contact person, phone numbers, email address);
(17) List of entities or persons with at
				least 25% ownership in the applicant, the amount of the percentage and identify
				the relationship with applicant (e.g., management, investment);
(18) Applicant's North American Industry
				Classification System ("NAICS") Code;
(19) Proposed project NAICS Code;
(20) Year applicant's business
				established;
(21) Date applicant
				commenced or will commence business in California;
(22) Location of applicant's headquarters and
				project location(s) if known;
(23)
				Number of full-time and part-time employees in California;
(24) Number of full-time and part-time
				employees in the United States (list states and number of employees in each
				state);
(25) Number of full-time
				and part-time employees worldwide;
(26) If applicable, provide an entity
				relationship chart, including all operations out of the state and in California
				and the number of employees in each entity;
(27) Description of proposed project,
				including whether it is for business growth, retention, or relocation, whether
				any increase of employees or investment by the applicant is due to an
				acquisition of, or merger with, another business, or whether any increase of
				employees is due to any employee leasing arrangement with another business or
				conversion of employees performing services for the applicant employed by a
				temporary services business, or whether any increase of employees is due to a
				transfer of employees from any member of a "controlled group of corporations"
				(as defined in Revenue and Taxation Code section
				23626)
				in which the applicant is a member of, or whether any of the applicant's
				investment is due to a conversion from a purchase to a lease or vice versa of
				real or personal property it already controls or has acquired, or whether any
				of the applicant's investment will be purchased or leased from a person or
				entity that is treated as related to the applicant under section
				267,
				318, or
				707 of the Internal Revenue Code
				or from any member of a "controlled group of corporations" (as defined in
				Revenue and Taxation Code section
				23626)
				in which the applicant is a member, or whether the project will occur in
				another state absent award of the credit, or whether the applicant will
				terminate all or a portion of its employees in California or relocate all or a
				portion of its employees in California absent award of the credit;
(28) Describe how award of the credit will
				influence the applicant's ability, willingness, or both, to create new
				full-time jobs in this state that might not otherwise be created in the state
				by the applicant or any other business in California.
(29) Describe any loss of full-time
				employment associated with project and reasons there will be employment losses
				in connection with the project either in California or out of state;
(30) Location and number of full-time
				employees affected by the project (additions, consolidations, or lay-offs) and
				the location, number and nature of part-time employees employed or that will be
				employed by the applicant;
(31)
				Describe project timeline;
(32)
				Describe whether any permits are needed for the project and whether they are
				approved, pending, or are yet to be applied for;
(33) Describe project financing, if
				applicable, and whether provided by venture capital, banking institution, other
				grants, private equity, or other type of financing structure;
(34) Working capital available for
				project;
(35) Provide additional
				information about funding and expected costs that have not yet been requested
				and that applicant deems would be material to share on the
				application;
(36) Number of
				full-time employees, determined on an annual full-time equivalent basis,
				employed by the applicant in its base year and the number of full-time
				employees, determined on an annual full-time equivalent basis, to be employed
				by the applicant in the applicant's current taxable year, and each of the four
				subsequent taxable years;
(37)
				Aggregate employee compensation;
(38) Type of full-time employment to be
				created (educational, manual labor, engineering, entry-level, managerial,
				etc.);
(39) Average and minimum
				wage for each classification of full-time employee proposed to be hired or
				retained;
(40) Description and
				average value of benefit and fringe benefit for each classification of
				full-time employee proposed to be hired or retained, including the type of, and
				amount contributed to, any employee retirement plan and the amount of health
				care benefit premium employees are required to pay and the average costs
				employees pay versus the amount paid by the health care plan;
(41) Date of anticipated hire of full-time
				employees;
(42) Describe the
				training opportunities provided to employees including, but not limited to: the
				type(s) of training offered, the training topic(s) covered, the training
				objective(s), the delivery method for the training, the number of training
				hours provided, whether the training is provided through a vendor or developed
				internally by the applicant, if provided by the vendor, whether that vendor is
				accredited by the Accrediting Commission for Schools, Western Association of
				Schools and Colleges, the California Bureau for Private Postsecondary
				Education, or a similar accrediting agency, whether employees receive full or
				partial pay during the training, whether the training may result in higher
				wages being paid to the employees in the future or may open new career paths to
				the employees in the future, whether the training is an apprenticeship approved
				by the California Department of Industrial Relations, Division of
				Apprenticeship Standards, or the United States Department of Labor, and whether
				special training programs are offered to any particular groups, including, but
				not limited to, veterans, at-risk youth, ex-offenders, and individuals with
				disabilities.
(43) Aggregate
				investment;
(44) Disclose whether
				applicant is looking at relocating to another state;
(45) Disclose if applicant expects to claim
				the New Employment Credit under Revenue and Taxation Code section
				17053.74
				or
				23626,
				and the estimated amount of credit to be claimed during each applicable taxable
				year;
(46) Disclose if applicant
				expects to utilize the Sales Tax Exemption under Revenue and Taxation Code
				section
				6377.1
				and the estimated amount of exemption for each applicable taxable
				year;
(47) Disclose any other
				incentives or credits available or offered to the applicant in the state,
				including state, local, and other entities;
(48) Disclose and describe any material
				litigation, any pending or resolved California Environmental Quality Act
				litigation relating to the project, any pending or resolved litigation,
				violations, citations, fines, or penalties relating to any state or federal
				labor law offenses within the last 10 years, any pending or resolved
				litigation, violations, citations, fines, or penalties relating to any state or
				federal occupational safety and health offenses within the last 10 years, any
				pending or resolved local, regional, state or federal environmental (including
				but not limited to air, water and ground) litigation, violations, citations,
				fines, or penalties within the last 10 years; all of which not only involve the
				applicant but any person or entity with a 25% or greater ownership interest in
				the applicant;
(49) Certify
				applicant and any person or entity with a 25% or greater ownership interest in
				the applicant does not owe any delinquent federal, California or any other
				state tax liabilities, or is in an approved installment agreement with the
				respective tax agency and disclose any outstanding or resolved federal,
				California, or any other state tax liens recorded against the applicant, or any
				person or entity with a 25% or greater ownership interest in the applicant,
				within the last 10 years.
(50)
				Applicant's base year from any previously approved California competes tax
				credit agreement and net increase of full-time employees, determined on an
				annual full-time equivalent basis, per taxable year from any previously
				approved California competes tax credit agreement.
(51) Applicant's current taxable
				year.
(52) Applicant's accounting
				period end date for state income tax purposes.
(53) Number of and minimum and average annual
				wage of California full-time employees hired and proposed to be hired by the
				applicant in its current taxable year and each of the four subsequent taxable
				years and the number of California full-time employees proposed to be hired
				after the deadline to submit an application during the application period for
				the applicant's current taxable year.
(54) Number of hourly California full-time
				employees employed by the applicant in its base year that worked 1,750 hours or
				more, and the number of hourly California full-time employees that worked less
				than 1,750 hours, and the total number of hours worked by those full-time
				employees.
(55) Number of salaried
				California full-time employees employed by the applicant in its base year that
				worked 50 weeks or more, and the number of salaried California full-time
				employees that worked less than 50 weeks, and the total number of weeks worked
				by those full-time employees.
(56)
				Number of hourly California full-time employees proposed to be employed by the
				applicant that will work 1,750 hours or more, and the number of hourly
				California full-time employees that will work less than 1,750 hours, and the
				total number of hours that will be worked by those full-time employees for the
				applicant's current taxable year and each of the four subsequent taxable
				years.
(57) Number of salaried
				California full-time employees proposed to be employed by the applicant that
				will work 50 weeks or more, and the number of salaried California full-time
				employees that will work less than 50 weeks, and the total number of weeks that
				will be worked by those full-time employees for the applicant's current taxable
				year and each of the four subsequent taxable years.
(58) Applicant's investment for its current
				taxable year and each of the four subsequent taxable years.
(59) If not awarded the California competes
				tax credit, disclose whether the applicant wants to be contacted by GO-Biz to
				learn about other economic development incentives that may be
				available.
(60) Describe the
				applicant's recruitment and/or hiring practices to promote a diverse and
				inclusive workforce.
(61) Will at
				least 75% of the applicant's net increase of full-time employees work at least
				75% of the time in an area of high unemployment or high
				poverty?