Assemblywoman Autumn R. Burke (D-Inglewood) today announced that $1 million in tax credits was awarded to Avasant, LLC in El Segundo. With the support of the tax credit, Avasant will add 55 additional full time employees in the 62nd Assembly District through the California Competes Tax Credit program.
“I am thrilled to see California making real investments in our local businesses,” Burke said. “These credits are creating jobs right here in our backyard, employing our friends and neighbors and strengthening the economy in the South Bay.”
The California Competes program was created by state legislation from 2013 that shifted $750 million previously slated for California’s Enterprise Zones into a new program designed to ensure the creation of new jobs by encouraging businesses to locate or expand in California. Under the former system, existing jobs were most often merely relocated from one area to another.
In addition to the tax credits for job creation, the new program offers sales tax relief on the purchase of research and development equipment for life sciences and manufacturing equipment. The amount of credits available will increase each year until 2018. Twenty-five percent of the credits are reserved for small businesses.
Businesses interested in the program can apply through the Governor’s Office of Business and Economic Development (Go-Biz), who then negotiates the credit before it is approved by aCalifornia Competes Committee, consisting of the State Treasurer, the Director of the Department of Finance, the Director of Go-Biz, and one appointee each by the Speaker of the Assembly and Senate Committee on Rules.
Over $20 million in tax credits were awarded to California businesses in the 2013-14 fiscal year and almost $150 million was awarded in the 2014-15 fiscal year.
“The California Competes program is another example of the work we are doing to ensure good jobs for all Californians,” Burke continued. “I am proud to see these credits putting people back to work.”
