The amount of money available now to growth-oriented California companies.
January 23, 2017
The deadline for this round of awards.
Doing business in California? Hiring 2-10 new employees a year, and/or investing in buildings or equipment? Get a piece of the $100 million in tax credits being awarded this period from the state’s Office of Business and Economic Development.
Too good to be true?
It’s not, as many California businesses can attest. Businesses are winning significant awards just for doing what they are already doing. For example, days before closing escrow on his new building, John, a business owner in San Diego County and DCI successfully applied for $150,000 in Cal Compete Tax credits – right on the day of the Fall 2015 application deadline! John’s company’s tax credit was based partially on the cost of his building and its improvements so if he missed the deadline his tax credit would have been substantially less.
Envoy Group, an Irvine online marketing and advertising company and DCI won a $450,000 credit for a pledge to hire 69 additional people.
Companies such as these, across many industries are winning tax credits, while others are losing out either because they don’t know about Cal Competes or try to apply for credits without the resources and strategies needed to win this competition for tax credits.
Do it yourself?
Most companies that apply on their own are rejected and end up wasting a large amount of time. Filling out an application is not enough. Having the guidance from an outside firm that knows the inner workings of the competition and key indicators that affect selection and amount of award can make all the difference in getting a company across the finish line, with a winning purse.
Are you a thoroughbred?
This is the real question that the selection committee is asking. With awards most likely to go to companies with high economic multipliers that provide their employees good wages and benefits, having a winning application requires a good strategy. For example, while DCI was helping Envoy Group win their $450,000 award, another financial services company decided to go it alone and received only $30,000.
Too busy with day-to-day activities to take some free money?
Is it worth 2-3 hours of time working with an expert firm, if it gave you a good chance of being awarded $100,000 in tax credits? Using DCI, a company can expect to spend just over an hour during our initial interview to determine if they meet eligibility requirements. If they move on to phase 2 and 3, they can expect to spend approximately 1 ½ hours of executive time – DCI handles the rest.
What do you have to lose?
Only the opportunity if you do nothing. DCI’s compensation is tied to our clients’ success, so there are no fees, but there are real deadlines and missed opportunity costs.
As with the example of John, the business owner who received a $150,000 award with the application being submitted by DCI on the day of the deadline, there would have been significant money forfeited had his application not gotten in on time because a portion of his award was tied to the cost of his building and its improvements.
How do I get my share of the winnings?
The Cal Competes Tax Credit application window closes January 23rd.. DCI Solutions (888-395-0809) recommends beginning the process as quickly as possible to ensure an optimum result.