California is a great state, with plentiful resources and multiple thriving industries. However, sometimes its tax system can be daunting, especially for new businesses, which is why it’s essential for business people to educate themselves on the many tax credits and incentives available to them. Let’s take a look at a few of the best advantages out there.
California Small Business Loan Guarantee Program (SBLGP)
While it’s often a struggle for most any business to thrive, the odds are simply stacked against smaller entities. This is why the California Small Business Loan Guarantee Program is such a great tool. Provided through non-profit Financial Development Corporations, the loan guarantees are issued as this department partners with eligible lenders to help fund small businesses that may experience trouble raising capital. Small California companies with 1 to 750 employees are eligible, as well as some nonprofits. These loans, which go up to $20 million with a maximum of $2.5 million, can be used for such tasks as business expansion, gap financing, inventory, new construction and even startup costs.
California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA)
California Alternative Energy and Advanced Transportation Financing Authority partners with public and private industries aiming to cut down on the state’s greenhouse gas emissions. They do this by increasing development and enacting renewable energy sources, more efficient energy and high tech transportation, and manufacturing devices and programs, which decrease air pollution and conserve resources while creating jobs. Also, one of CAEATFA’s primary programs is a sales tax exclusion (STE) for manufacturers.
California Film & Television Tax Credit Program 2.0
Southern California is known for Hollywood, the film center of the world, and the state wants to keep it this way. This is why the California Film & Television Tax Credit Program 2.0 provides many appealing reasons to create visual art directly in the state. For example, it includes a 25 percent non-transferable tax credit for relocating a TV series to California.
Partial Sales and Use Tax Exemption for Teleproduction or Other Postproduction Service Equipment
Another entertainment-related tax incentive is the Partial Sales and Use Tax Exemption for Teleproduction or Other Postproduction Service Equipment. A partial exemption from the sales tax for the use or storage of equipment and machinery used in teleproduction is available to those who take advantage of this tax exemption.
Industrial Development Bonds
Lastly, private companies can acquire industrial development bonds to finance acquisitions, do construction or rehabilitate and equip manufacturing and processing facilities. The Infrastructure Bank and the State Treasurer’s Office, local Industrial Development Authorities and Joint Powers Authorities issue these special bonds.
This article was written by Dan MacIntosh for CBS Small Business Pulse.