Dive Brief:
- California Gov. Gavin Newsom announced Monday that the Office of Business and Economic Development awarded $99.9 million in tax credits to nine companies that plan to establish or expand manufacturing operations in the state.
- The tax incentives, dubbed CalCompetes, will bring in more than $370 million in investments to California, according to the press release.
- The tax credits will also support an estimated 2,752 jobs, with an average annual salary of $139,000.
Dive Insight:
The CalCompetes tax incentive was established in 2013 to help businesses grow and stay in the state. Since the program’s launch, California has awarded tax credits to more than 1,200 companies and created about 161,000 jobs, according to the Governor’s Office of Business and Economic Development.
The latest round of manufacturing awardees involves various sectors including aerospace, wastewater treatment, data center infrastructure and clothing design, per the release.
9 manufacturers received $99.9M in CalCompetes tax credits
The state has approximately $308 million in CalCompetes tax credits available and the Governor’s Office of Business and Economic Development will accept applications from Jan. 5 to Jan. 26, 2026, according to a June 30 notice. Later in the year, the state agency will have $306.6 million available plus any remaining unallocated amounts, and will accept applications from March 2 to March 16, 2026.
The tax credits also support Newsom’s 10-year plan for economic growth, which he released in February. Titled “California Jobs First Economic Blueprint,” the plan entails nine state agencies taking action to streamline the economic, business and workforce development to expedite job creation, including strengthening the state’s manufacturing sector.
Additionally, Newsom’s plan includes spending $52 million in creating apprenticeships focused on high-demand sectors such as advanced manufacturing, according to the Feb. 25 press release. Furthermore, the state will invest $16 million for pre-apprenticeship and apprenticeship programs that provide hands-on job training for people ages 16 to 24 who are not in school or working.
“Through programs like CalCompetes, we’re attracting companies and helping them grow successfully in our state, creating good-paying jobs and opportunities for Californians,” Newsom said in a statement Monday.
The California governor has taken other actions to bring more manufacturers to the state. Last month, he signed a law that would provide financing to manufacturers adopting thermal energy storage systems and heat pumps for their operations.
In June, Newsom signed the 2025-2026 state budget that includes a new law expediting the environmental review process for chipmakers and other high-tech manufacturers to build in industrial zones as well as lower construction costs in the state.
