Tax Competes Credits Given to County Businesses

Five companies in San Bernardino County have been awarded California Competes Tax Credits totaling nearly $5.5 million for the creation of 1,148 new jobs. The award is from the Governor’s Office of Business and Economic Development (GO-Biz) and approved by the California Competes Tax Credit (CCTC) committee. 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. Five county businesses were among the 56 companies chosen by the Governor’s office. Companies apply for tax credits at www.calcompetes.ca.gov and 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. Chosen companies are exempted from paying state income taxes in the amount awarded. “San Bernardino County is committed to doing all we can to support job creation for its new and expanding businesses,” said Larry Vaupel, Economic Development Agency Administrator for San Bernardino County. “California Competes is one of the programs we promote and incorporate into our local economic development efforts. Our local companies recognized by the Governor’s office are indicative of the strong business climate we have regionally and the ongoing strength of our small-to-mid size business community.” The following San Bernardino County businesses were awarded the tax credit: • Bottled water manufacturer Niagara Bottling, LLC in Rialto was awarded a $2.7 million tax credit with a net increase of 409 employees. • Retail warehouse and distributor QVC, Inc. was awarded a $1.4 million tax credit with a net increase of 521 employees. (A new facility to open in either Ontario, Rialto, or neighboring community of Eastvale.) • Tablet and phone case manufacturer AFC Trident, Inc. in Ontario was awarded a $650,000 tax credit with a net increase of 83 employees. • Steel company CSI Tubular Products, Inc. in Fontana was awarded a $540,000 tax credit with a net increase of 105 employees. • Sawmill and agricultural product manufacturer Fruit Growers Supply Company in Ontario was awarded a $200,000 tax credit with a net increase of 30 employees. Vaupel noted that the creation of jobs is important to the region, as well as sustaining them long-term for the health of the county and the state. A recent study by SSTI analyzed the data from the Bureau of Labor Statistics to determine business survival rate by state. California led not only in terms of business starts with nearly 80,000 new businesses in 2007 (Texas was second with 46,304), but data showed the 6-year survival rate through the Great Recession years for California businesses (2007-2013) was 71 percent. The next best state was Massachusetts, at 56 percent. California is the only state to have a 10-year-survival rate above 50 percent, at 54.8 percent, according to this data.