ANNOUNCEMENT 18 Jun 2015

In June 2015, announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 18 Jun 2015 | Removal date: open ended

Tax or social insurance relief

On June 18, 2015 GO-Biz awarded a California Competes Tax Credit of $15 million to Tesla Motors, Inc. in an agreement to manufacture electric vehicles, powertrain component, and batteries. In consideration for the credit, Tesla agreed to expand its operations at various locations throughout California, including Fremont, Palo Alto, Lathrop, and Hawthorne. Additionally, Tesla will invest in the purchase of real property, tenant improvements, manufacturing equipment, research and development equipment, and hire full-time employees as part of its expansion. The California Competes Tax Credit is an income tax credit available to businesses that want to come to California or stay and grow in California. Tax credit agreements are negotiated by GO-Biz and approved by a statutorily created California Competes Tax Credit Committee.

AFFECTED SECTORS