Assemblyman Das Williams, D-Carpinteria, on Tuesday announced that $700,000 in tax credits was awarded to Patagonia Works in Ventura.
With the support of the tax credit, Patagonia Works will add an additional 175 full-time employees in Assembly District 37 through the California Competes Tax Credit program.
“I’m thrilled to see Patagonia Works receive California Competes Tax Credits. Patagonia has been a model local business and employer — giving back to the community, working to protect our unique environment, and providing their employees with a high quality work life and child care,” Williams said. “As a legislator, it’s exciting to see my votes in Sacramento having a real impact at home.”
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 a California 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.
More than $20 million in tax credits were awarded to California businesses in the 2013-14 fiscal year, and more than $150 million will be available in the 2014-15 fiscal year.
— Anett Hurtado is a field representative for Assemblyman Das Williams.