California Competes Tax Credit (CCTC) Credit code 233

Overview

This credit is available for businesses that want to:

  • Come to California
  • Stay and grow in California

Tax credit agreements are negotiated by the Governor's Office of Business and Economic Development (GO-Biz) and approved by the California Competes Tax Credit Committee.

Through this 5-year agreement, businesses commit to meeting yearly milestones for full-time employment, salary levels, and project investment.

Credit Awardees must meet milestones for each taxable year to earn the allocated credit for that year and must maintain the employee-based milestones for three years after they are achieved.

You may claim the credit on your tax return only if you have earned it.

This credit is not refundable and can be used to reduce tax below tentative minimum tax. If your credit amount exceeds your tax liability, you may carry it over for up to 6 years.

This credit can also be assigned. Visit Credit assignments.

How to apply

You can apply for a CCTC allocation in one of three separate application periods. Applications must be submitted through calcompetes.ca.gov while the application period is open. Visit GO-Biz-California Competes Tax Credit for additional information.

How to claim

Our review process

If you were awarded the credit, we may review your records once or multiple times over the allocation and maintenance period of the credit.

We focus on verifying the yearly milestones for full-time employment, salary levels, and project investment.

The review for this credit is not an income tax audit, and your business tax return remains subject to audit.

We will send you a contact letter to begin a review along with the reviewer and supervisor contact information. When we finish the review, we will send you a letter that states whether your business is in compliance or not in compliance with the credit agreement.

In the event that we determine that your business is not in compliance with the credit agreement, we will provide GO-Biz and you with information that explains the basis of our determination. For more information, visit California Competes Tax Credit Review Information (FTB 1015F).

Our review includes verification and request for the following:

Employment and Compensation Levels

Payroll reports and records to support:

  • Hire dates, hours, or weeks worked
  • Wages and salary levels for new employees

Project Investment

  • Authorization for expenditures, invoices, deeds, contracts, lease/rental agreements, etc.
  • Project documents, timelines, capitalized costs, schedule of project costs, etc.
  • Summary analysis of changes in property, plant, and equipment
  • Depreciation records
  • General ledger records

The above is not all inclusive. Acceptable records depend upon the specific project. We may also consider alternative documents.

Material breach

GO-Biz has defined a material breach as one or more of the following:

  • Failure to furnish us or GO-Biz with information
  • Material misstatements in information provided to GO-Biz as part of the application process
  • Failure to materially satisfy Milestones set forth in Exhibit A
  • Failure to maintain any of the three employee-based Milestones for three years after achieving the Milestone

Recapture

If the Committee makes the decision to recapture partial or the full credit:

  • GO-Biz will notify you and us about the recapture and the amount
  • You report the recapture on the tax return for the taxable year in which the committee made the decision
  • We’ll review your tax return and send you a bill if you utilized the CCTC from a recaptured milestone year and did not report the corresponding recaptured amount on your tax return

Contact

Review process questions, email GEDI@ftb.ca.gov.

Last updated: 10/09/2026