$178.2 million in tax credits will create more than 7,600 jobs in cutting-edge industries like space exploration, AI semiconductor chip development, and climate change innovation
The Newsom Administration is investing in businesses paving the way to a better future for Californians while boosting California’s innovation economy
SACRAMENTO – Nearly $2 billion in new private investment over the next five years. Thousands of new private-sector jobs.
That’s what is coming to California courtesy of more than $178 million in tax credits announced today by the Governor’s Office of Business and Economic Development (GO-Biz.)
The money is being invested in industries that will shape the future. Space exploration. Artificial Intelligence. New farming technology to fight climate change. With private ingenuity and public backing, the future continues to be created in California.
“Investing in innovation works, and no place does it better than California — solving our most existential challenges with creativity and the technology of the future,” said Governor Gavin Newsom.
The $178.2 million in CalCompetes tax credits will go to companies that will increase manufacturing in the state, and continue the state’s economic growth, which has been unmatched since the end of the COVID-19 pandemic.
Companies receiving the tax credits will create more than 7,600 new full-time jobs in California and bring in more than $1.78 billion in new investments to the state over the next 5 years.
The California Competes Tax Credit was created in 2013 to focus on helping businesses grow and stay in California. GO-Biz evaluates the most competitive applications based on the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance and more. In 2018, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to business each year through 2023.
Here are a few companies and industries receiving the tax credit:
Astra Space Operations Inc. received a $25 million credit to scale their manufacturing and research and development capabilities in locations such as Alameda and Fairfield.
In exchange for a $30.7 million credit, Relativity Space Inc. will be creating at least 1,044 full-time jobs between their Long Beach and Lompoc facilities to expand their ability to manufacture 3D-printed rockets that carry satellites into space. These investments build on California’s longstanding commitment to supporting leading companies in the commercial space and aerospace industries.
“Companies like Astra and Relativity represent the best of California’s innovation economy,” said Dee Dee Myers, Senior Advisor to Governor Newsom and Director of GO-Biz. “In addition to these two awards, we look forward to supporting regional economic development initiatives across the state that are community-led and with a focus on space.”
“Scaling our manufacturing capabilities is a critical part of our strategy to increase access to the space economy through more frequent launches,” said Astra Founder, Chairman and CEO Chris Kemp. “We have an incredible team that shares the same innovative spirit as the state, and we’re grateful for California’s support.”
“California is a talent destination,” said Caryn Schenewerk, VP of Government and Regulatory Affairs at Relativity Space. “With our new 1M+ sq. foot factory headquarters, and our second launch site at Vandenberg Air Force Base, we’re proud to design, build and launch the world’s first 3D printed rocket here in California. We greatly appreciate Governor Newsom and the GO-Biz team for investing in the future of aerospace tech.”
Luminous Computing Inc. received a $13 million credit to continue their focus on artificial intelligence semiconductor chip development and manufacturing. In exchange, the company has committed to create at least 895 new jobs and invest more than $108.6 million to expand their Santa Clara operation.
“Luminous Computing is thankful for support of the CalCompetes program and the State of California that will allow us to expand our footprint and grow our team of experts developing a unique solution to accessible and scalable AI,” said Luminous CEO and Co-Founder Marcus Gomez.
“California is working with us to tackle one of the world’s biggest environmental problems: permanently eliminating plastic waste,” said Mark Gantar, Executive Chairman of USWTE. “We have committed to bring our technology to the State, eliminate the waste entered into the system, and create jobs and investment. Yes, we can fix the plastic waste problem, and California is a leader in making it happen.”
“We are thankful to GO-Biz and the State of California for their support and recognition through the CalCompetes Tax Credit,” said Dave Hazlebeck, Founder & CEO of Global Algae. “Our large-scale algae farming practices are essential tools in solving the climate crisis and were recently selected by XPRIZE as some of the most promising solutions for carbon removal in the world. We are excited to expand in California, provide a full spectrum of high-quality agricultural jobs, and keep California in the lead for carbon removal.”
“We are thrilled that GO-Biz has decided to support the arrival of Re-Match in California,” said Re-Match CEO Nikolaj Magne Larsen, “and we look forward to the opportunity to offer sustainable recycling to owners of artificial turf fields.”
The complete list of approved companies and award amounts is available here.
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