The state of California awarded $120 million in tax credits this week as part of its California Jobs First initiative, which is expected to create 2,100 full-time jobs and bring an estimated $15.5 billion in private investment into the state over the next five years, including for a Davis-based high-tech communications technology company.
The eight companies awarded tax credits from the Governor’s Office of Business and Economic Development, or GO-Biz, California Competes program are expected to bring in new jobs with an average annual salary over $100,000 each, largely in energy, manufacturing and technology sectors.
“California Competes continues to be a critical program within the California Jobs First portfolio that attracts and retains businesses, who in turn create family-supporting jobs and economic opportunity for workers across our state,” said Dee Dee Myers, senior adviser to Gov. Gavin Newsom and director of GO-Biz, in a news release. “We’re excited to build on the success of this program, investing in companies that are building the industries of today and tomorrow."
Davis-based wave-amplifier communications hardware company Elve Inc. was awarded up to $15 million in California Competes Tax Credits. To get the credits, Elve is projecting it will make more than $55 million in investments into its own business and hire an additional 310 employees over five years.
A June 2022 startup, Elve has 26 employees currently, and expects to have 58 by the end of next year and a total of 325 by the end of the 2028 tax year, according to its application for the Cal Competes credit.
The largest awards, $30 million each, went to a lithium plant in Imperial County and the first steel mill to be built in California in 50 years, which will be in Kern County.
Imperial-based Controlled Thermal Resources Holdings Inc. received a $30 million tax credit to help construct a facility near the Salton Sea to sustainably extract lithium and other critical minerals from geothermal power sources. Controlled Thermal is expected to make capital investments of more than $14.7 billion and create nearly 450 new, full-time jobs in Calipatria and Imperial.
San Diego-based Pacific Steel Group is about to build a steel mill in Kern County. It received a $30 million tax credit to hire employees and invest in manufacturing equipment as part of its expansion. To get the credit, it must invest more than $540 million and create nearly 450 new jobs over five years.
Elve makes high-efficiency lightweight millimeter-wave power amplifiers, primarily for supplying connectivity for space applications and high-bandwidth earth communications. Elve is now preparing its manufacturing operation in 7,000 square feet of space in University Research Park in Davis. In February, Elve raised $15 million from investors.
The state does not pay companies under the California Competes Tax Credit program. Rather, the state forgives taxes to the specified amount if the companies meet hiring and investment goals over time. California Competes is one of the state’s few monetary economic incentive programs. It's administered by GO-Biz.
Other local operations that have sought Cal Competes credits include Bosch for its chip manufacturing plant under construction in Roseville and technology consulting firm HCL Technologies Ltd.
