FOR IMMEDIATE ISSUANCE
178.2 million dollars in tax credits will to create more than 7,600 jobs in cutting-edge industries such as space exploration, AI semiconductor chip development and climate change innovation
The Newsom Administration is investing in companies that pave the way to a better future for Californians while fueling California’s innovation economy.
SACRAMENTO – Nearly $2 billion in new private investment over the next five years. Thousands of new jobs in the private sector.
That’s what’s coming to California courtesy of more than $178 million in tax credits announced today by the Governor’s Office of Economic and Business Development (GO-Biz).
The money is being invested in industries that will shape the future. Space exploration. artificial intelligence New agricultural technologies to fight climate change. With private ingenuity and public backing, the future continues to be created in California.
“Investing in innovation works, and nowhere does it better than California, solving our most existential challenges with creativity and the technology of the future,” he said. Governor Gavin Newsom.
The $178.2 million in CalCompetes tax credits will go to businesses 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 more than $1.78 billion in new investment 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 factors required by law, including total jobs created, total investment, average salary, economic impact, strategic importance and more. In 2018, the program was extended for five additional years with at least $180 million in tax credits available for allocation to businesses each year through 2023.
Here are some businesses and industries that receive the tax credit:
🚀 EXPLORATION OF SPACE
Astra Space Operations Inc. received a $25 million loan to expand its manufacturing and research and development capabilities in locations such as Alameda and Fairfield.
In exchange for a $30.7 million loan, Relativity Space Inc. will create at least 1,044 full-time jobs between its Long Beach and Lompoc facilities to expand its capacity to make 3D-printed rockets that carry satellites into space. These investments build on California’s long-standing 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,” he 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 community-led, space-focused regional economic development initiatives across the state.”
“The scale of our manufacturing capabilities is a key part of our strategy to increase access to the space economy through more frequent launches,” he said. Chris Kemp, founder, president and CEO of Astra. “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,” he said Caryn Schenewerk, Vice President of Governance and Regulatory Affairs at Relativity Space. “With our new over 1 million square foot factory headquarters and our second launch site at Vandenberg Air Force Base, we are proud to design, build and launch the world’s first 3D printed rocket right here in California. We are very grateful to Governor Newsom and the GO-Biz team for investing in the future of aerospace technology.”
🤖 ARTIFICIAL INTELLIGENCE
Luminous Computing Inc. received a $13 million loan to continue its focus on developing and manufacturing artificial intelligence semiconductor chips. In return, the company pledged to create at least 895 new jobs and invest more than $108.6 million to expand its operation in Santa Clara.
“Luminous Computing is grateful for the support of the CalCompetes program and the State of California, which will allow us to expand our footprint and grow our team of experts developing a unique solution for affordable and scalable AI,” he said. The CEO and co-founder of Luminous, Marcus Gomez.
🌳 CARBON ALGAE AND MORE
- USWTE-CA1 LLC, Plastic waste recycler based on redding
- Global Algae Holdings Inc.which is expanding its commercial seaweed farming operations in San Louis Obispo County’s Shandon
- Re-Match USA Inc.whose parent company is based in Denmark, is using its award to open its first facility in California that will use state-of-the-art technology to separate and recycle worn synthetic turf athletic fields for use in improving existing and in manufacturing. new synthetic athletic fields.
“California is working with us to address one of the world’s biggest environmental problems: permanently eliminating plastic waste,” he said. Mark Gantar, USWTE Executive Chairman. “We are committed to bring our technology to the State, eliminate the waste introduced into the system and create jobs and investment. Yes, we can solve the problem of plastic waste, and California is a leader in making it happen.”
“We thank GO-Biz and the State of California for their support and recognition through the CalCompetes tax credit,” he said. Dave Hazlebeck, Founder and CEO of Global Algae. “Our large-scale algae cultivation practices are essential tools for solving the climate crisis and were recently selected by XPRIZE as some of the world’s most promising solutions for carbon sequestration. We are excited to expand in California, offer a full spectrum of high-quality agricultural jobs and keep California at the forefront of carbon removal.”
“We are thrilled that GO-Biz has decided to support Re-Match coming to California,” he said. Nikolaj Magne Larsen, CEO of Re-Match“and we look forward to the opportunity to provide sustainable recycling to owners of artificial turf fields.”
The full list of approved companies and award amounts is available here.