South Bay Firms Commit to Creating Thousands More Jobs After Receiving Tax Credits

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.

6 Comments

  1. Time will tell. From a tax point of view, CA is one of the least attractive places to start a business.

  2. > alifornia 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

    I’ll bet these CORPORATIONS really like Democrats now.

    I wonder how much these crony capitalists will be donating to Democrat candidate campaigns?

    How long will it be before Kamala Harris wails that they don’t pay any taxes?

  3. California has a $1 Trillion dollar unfunded pension liability so let’s reduce corporate taxes.

    That makes sense.

  4. > California has a $1 Trillion dollar unfunded pension liability

    Sorry retired government employees.

    You’re screwed.

    Can’t raise taxes on rich people who have left the state.

    Plan on getting smaller pension checks from the oligarchs.

    Oh, and keep wearing your masks and cutting your carbon emissions.

  5. > California has a $1 Trillion dollar unfunded pension liability

    It seems unfunded pension liability is the invisible hand that shapes all legislative policy in CA.

    How else to explain the complicit actions of the legislature to force feed “housing” development in cities where population declines, where land is already built out, and where there’s no requirement that “housing construction by legislative mandate” results in actual homes for people?

    “California’s Immense Pension Dilemma” published by Calmatters: https://calmatters.org/commentary/dan-walters/2020/08/california-court-pension-debt-unfunded/

  6. @SJOUTSIDETHE BUBBLE. Well, I am not screwed because I have enough income outside of retirement to do quite well.