California has awarded $80 million in tax credits to four companies—Santa Clara-based Cepheid, Palo Alto-based Lockheed Martin, Better Holdco, Inc. and American Honda Finance Corporation—that are projected to create 6,535 full-time jobs and drum up more than $400 million in new investments.
A diagnostic test manufacturing company, Cepheid has committed to create 2,510 jobs in Lodi and Santa Clara County after being awarded $20 million in tax credits from the California Competes Tax Credit Committee.
“Companies like Cepheid, which are leaders in science and technology, are unique to California’s economy and what makes us successful,” Governor’s Office of Business and Economic Development (GO-Biz) Acting Director Chris Dombrowski said in a news release. “Our continued economic vitality and recovery depends on sustained support and investment in these innovators.”
Aerospace manufacturer Lockheed Martin received the biggest tax credit, at $29.8 million, which will be used to create 450 new jobs.
Consumer lending company Better Holdco Inc. was awarded a $25 million tax credit which is expected to create 3,500 new jobs.
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 the factors required by statute, including total jobs created, total investment, average wage, economic impact, strategic importance and more.
In 2018, the program was extended for an additional five years with at least $180 million in tax credits available for allocation to businesses each year through 2023. Gov. Newsom hopes the incentives spur “innovation and growth” which should lead to increased new jobs as the state recovers from the recession caused by the pandemic.