Economic Incentives & Tax Credits

High impact incentives for California businesses

Given the size of its economy, California spends only 5 cents on the dollar to fund its $4.17 billion per year incentive programs. Agriculture just manages to outpace Film, with the Tech industry coming in thrid. California dispenses about half of its incentive dollars via corporate tax credits and rebates. Significantly, some of its largest state programs are to fund tax credits for Research and Development and create tax breaks for enterprise zones and other designated geographic areas.

Small and Growing Businesses

Governor's Office of Business and Economic Development (GO-Biz)
California Competes Tax Credit

The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that want to locate in California or stay and grow in California.
California Department of Tax and Fee Administration
CA Manufacturing and Research & Development Equipment Exemption

California manufacturers who purchase or lease equipment for qualified business use can take a 3.9375 percent exemption from the sales and use tax on the purchase.

Employment Training Panel (ETP)
Employment Training Panel (ETP)

The Employment Training Panel (ETP) provides funding to employers for training that upgrades the skills of their workers.
Internal Revenue Service (IRS)
Research & Development Tax Credit (R&D)

The R&D Credit was created to incentivize companies to keep high-tech jobs in the US. Companies can claim employee wages, supplies & raw materials, computer rental costs, & third-party contractor expenditures incurred throughout the R&D process.

Southern California Edison
Southern California Edison (SCE) Economic Development Rate Discount

The Economic Development Rate (EDR) is a discount on utility costs offered by utility companies to attract, retain and promote the expansion of businesses within their service area.

State of California Franchise Tax Board
New Employment Credit (NEC)

The New Employment Credit is a tax credit available to employers who hire qualified employees in designated geographic areas, providing a tax credit of up to $56,000 over five years.

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Get the Tax Money You're Owed in Minutes

Subcity empowers small businesses, CPAs, and finance professionals to identify and apply for economic incentives and tax credits. Each year, over $100 billion is allocated for incentives across local, state, and federal programs in the U.S. Unfortunately, a significant portion of this money goes unclaimed or to large corporations with teams of tax attorneys and legal experts. Subcity utilizes a comprehensive database of incentives to connect small businesses with the programs that were designed to help them create jobs, invest in their communities, and grow their business. Subcity charges a 10-20% fee for the programs they successfully secure, ensuring zero risk for clients as payment is contingent on results. Subcity is on a mission to democratize access to capital for America’s small businesses and has already delivered tens of millions of dollars in tax incentives for clients across the country.

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