© Sorenson Business Consulting Inc. 2019

September 16, 2019

Please reload

Recent Posts

When a Hobby Becomes a Business

March 15, 2017

1/3
Please reload

Featured Posts

California Competes Tax Credit

March 8, 2015

I recently went to a seminar to learn about a new California Tax credit called California Competes Tax Credit.  It is for companies that are growing and/or expanding over the next 5 years. 

 

This program offers a tax credit that directly offsets the amount of tax you are required to pay.  For example if you owe the Franchise Tax Board $6,000 and you receive the Tax Credit you can use it to offset the $6,000 and therefore would own no taxes for that year. 

 

The requirements for the tax credit are stringent however.  Your company must be growing over the next 5 years in two ways:

  • You must be hiring additional full time employees, and/or

  • You must be purchasing new fixed assets

The calculation to determine if you are in the running is complex.  However, if you feel that your company is poised for growth and would like the calculation completed we will be happy to offer our services.  Our fee to do so will be $500 for the initial calculation.  We will help you estimate your hiring and expenditures for the next 5 years to determine if you could be in the running.  If it is determined that you could be a "contender" for the tax credit we will process your application with California Completes.  The additional fee to do so will be $2,500. 

 

The catch is that the application period is only open between March 9th and April 6th, so we will have to act fast if we want to place an application.  They anticipate another application period sometime in July or August.  So, if we don't get in this time, we can try again simply by updating the application. 

 

If you would like to do some research on your own, the website to do so is www.business.ca.gov/Calcompetes.aspx.  

 

THESE CREDITS ARE AVAILABLE TO SMALL BUSINESSES ALSO. 

Please reload

Follow Us
Please reload

Search By Tags