§ 8030. Application Process for Tax Credit Allocation.
10 CA ADC § 8030Barclays Official California Code of Regulations
10 CCR § 8030
§ 8030. Application Process for Tax Credit Allocation.
(8) Consultant, attorney, tax practitioner or any other third party (hereinafter referred to collectively as “consultant”) preparing or submitting the application, or providing any services related to the credit, name and contact information (address, contact person, phone numbers, e-mail address), if applicable;
(27) Description of proposed project, including whether it is for business growth, retention, or relocation, whether any increase of employees or investment by the applicant is due to an acquisition of, or merger with, another business, or whether any increase of employees is due to any employee leasing arrangement with another business or conversion of employees performing services for the applicant employed by a temporary services business, or whether any increase of employees is due to a transfer of employees from any member of a “controlled group of corporations” (as defined in Revenue and Taxation Code section 23626) in which the applicant is a member of, or whether any of the applicant's investment is due to a conversion from a purchase to a lease or vice versa of real or personal property it already controls or has acquired, or whether any of the applicant's investment will be purchased or leased from a person or entity that is treated as related to the applicant under section 267, 318, or 707 of the Internal Revenue Code or from any member of a “controlled group of corporations” (as defined in Revenue and Taxation Code section 23626) in which the applicant is a member, or whether the project will occur in another state absent award of the credit, or whether the applicant will terminate all or a portion of its employees in California or relocate all or a portion of its employees in California absent award of the credit;
(36) Number of full-time employees, determined on an annual full-time equivalent basis, employed by the applicant in its base year and the number of full-time employees, determined on an annual full-time equivalent basis, to be employed by the applicant in the applicant's current taxable year, and each of the four subsequent taxable years;
(40) Description and average value of benefit and fringe benefit for each classification of full-time employee proposed to be hired or retained, including the type of, and amount contributed to, any employee retirement plan and the amount of health care benefit premium employees are required to pay and the average costs employees pay versus the amount paid by the health care plan;
(42) Describe the training opportunities provided to employees including, but not limited to: the type(s) of training offered, the training topic(s) covered, the training objective(s), the delivery method for the training, the number of training hours provided, whether the training is provided through a vendor or developed internally by the applicant, if provided by the vendor, whether that vendor is accredited by the Accrediting Commission for Schools, Western Association of Schools and Colleges, the California Bureau for Private Postsecondary Education, or a similar accrediting agency, whether employees receive full or partial pay during the training, whether the training may result in higher wages being paid to the employees in the future or may open new career paths to the employees in the future, whether the training is an apprenticeship approved by the California Department of Industrial Relations, Division of Apprenticeship Standards, or the United States Department of Labor, and whether special training programs are offered to any particular groups, including, but not limited to, veterans, at-risk youth, ex-offenders, and individuals with disabilities.
(48) Disclose and describe any material litigation, any pending or resolved California Environmental Quality Act litigation relating to the project, any pending or resolved litigation, violations, citations, fines, or penalties relating to any state or federal labor law offenses within the last 10 years, any pending or resolved litigation, violations, citations, fines, or penalties relating to any state or federal occupational safety and health offenses within the last 10 years, any pending or resolved local, regional, state or federal environmental (including but not limited to air, water and ground) litigation, violations, citations, fines, or penalties within the last 10 years; all of which not only involve the applicant but any person or entity with a 25% or greater ownership interest in the applicant;
(49) Certify applicant and any person or entity with a 25% or greater ownership interest in the applicant does not owe any delinquent federal, California or any other state tax liabilities, or is in an approved installment agreement with the respective tax agency and disclose any outstanding or resolved federal, California, or any other state tax liens recorded against the applicant, or any person or entity with a 25% or greater ownership interest in the applicant, within the last 10 years.
(53) Number of and minimum and average annual wage of California full-time employees hired and proposed to be hired by the applicant in its current taxable year and each of the four subsequent taxable years and the number of California full-time employees proposed to be hired after the deadline to submit an application during the application period for the applicant's current taxable year.
(56) Number of hourly California full-time employees proposed to be employed by the applicant that will work 1,750 hours or more, and the number of hourly California full-time employees that will work less than 1,750 hours, and the total number of hours that will be worked by those full-time employees for the applicant's current taxable year and each of the four subsequent taxable years.
(57) Number of salaried California full-time employees proposed to be employed by the applicant that will work 50 weeks or more, and the number of salaried California full-time employees that will work less than 50 weeks, and the total number of weeks that will be worked by those full-time employees for the applicant's current taxable year and each of the four subsequent taxable years.
(d) In all applications, the applicant must represent and warrant that all statements in the application are true and complete to the best of the applicant's knowledge. Such representation and warranty must be made by a person who is most knowledgeable of the project. The applicant may be required to certify any information provided in the application by written, electronic signature, or the equivalent.
(e) Any information submitted to GO-Biz that the applicant considers to be a trade secret, confidential, privileged or otherwise exempt from disclosure under the Public Records Act (California Government Code section 6250, et seq.) shall not be publically disclosed by GO-Biz unless it is required to do so by court order or applicable law. An applicant shall assert a claim of exemption by identifying each of the items to be restricted and the section of law that provides for the exemption (e.g., Government Code section 6254.15) at the time its application form is submitted to GO-Biz. In the event GO-Biz is required to publically disclose information identified by the applicant as a trade secret, confidential, privileged, or otherwise exempt from disclosure, GO-Biz shall notify the applicant at least five (5) business days prior to the release of such information in order to allow the applicant to seek an injunction, as applicable, unless a court order or the equivalent prevents such timely notice.
(g)(1) Phase I. Phase I is an automated phase in which the applicant's amount of tax credit requested, aggregate employee compensation, and aggregate investment provided on the application form shall be evaluated to determine the rate of return. The aggregate employee compensation shall be added to the aggregate investment and the sum of these two numbers will be the total proposal by the applicant. The amount of the California competes credit requested by the applicant shall be divided by the total proposal to create the cost-benefit ratio of the credit requested to total proposal provided. Each applicant shall be listed according to the lowest percentage of the cost-benefit ratio, with the lowest percentage being positioned the highest and so forth. Based on this order, GO-Biz shall then work down the list and engage the most competitive applicants to move forward to Phase II, specifically including a pooled review of the most competitive applicants whose aggregate California competes credit requested is at least two hundred percent of the tax credit available for the application period. For example, if the amount of tax credit available in an application period is $30 million, GO-Biz will review the most competitive applicants whose aggregate California competes tax credit requested is at least $60 million. Notwithstanding the foregoing, GO-Biz may move an applicant to Phase II in the event of either condition identified in subparagraphs (A) or (B).
(A) The owner, president, chief executive officer, chief financial officer, or other equivalent person of the applicant certifies in writing to GO-Biz that, absent award of the tax credit, the project may occur in another state or the applicant may terminate all or a portion of its employees in this state or may relocate all or a portion of its employees in this state to another state.
(A) Extent of unemployment or poverty in the area according to the United States Census in which the applicant's project is proposed or located, as supplemented by the information provided by California's Employment Development Department on http://www.labormarketinfo.edd.ca.gov/ or the equivalent website, as it may change from time to time;
(H) Any other information requested in the application; including, but not limited to, the reasonableness of the fee arrangement between the applicant and any consultant, attorney, tax practitioner or any other third party that prepared or submitted the application, or provided any services related to the credit.
(i) Evidence. GO-Biz shall ask an applicant to provide supplemental information that substantiates the information provided in the application, as needed. The applicant may be asked to submit the information electronically or in hard-copy as designated by GO-Biz. Upon review of such documentation, if GO-Biz determines that documentation is insufficient to support the information provided in the application, GO-Biz shall request that the applicant provide additional information. If the applicant fails to provide the additional information to the satisfaction of GO-Biz, GO-Biz shall place the application on hold until the appropriate documentation is provided or until the then-current application period expires.
(j) Amending and withdrawal of an application. If an applicant intends to revise a portion of a previously submitted application form, the applicant shall notify GO-Biz via the website and either withdraw the application and submit a new one or provide an amendment to the existing application. An applicant may amend an application form at any time until the last day for applications to be submitted during the application period. An applicant may withdraw an application at any time prior to committee approval by submitting a request for application withdrawal on the website.
(k) Negotiation. At the discretion of GO-Biz, GO-Biz may contact the applicant to schedule telephone conferences, video conferences, in-person meetings, or other similar types of communication to negotiate the terms and conditions of the tax credit agreement. Negotiations will be based on the following factors:
(4) The extent of unemployment or poverty in the area according to the United States Census in which the applicant's project or business is proposed or located, as supplemented by the information provided by California's Employment Development Department on http://www. labormarketinfo.edd.ca.gov/ or the equivalent website, as it may change from time to time.
(m) Pending applications shall not be eligible for a tax credit. Application shall be deemed pending if any information requested by GO-Biz is not provided within the requested timeframe or GO-Biz and applicant fail to reach an agreement. GO-Biz shall notify applicants of a pending application that, if not cured, shall not be considered for an allocation until the deficiency is cured.
(n) If an applicant is not awarded any allocation in the then-current application period and the applicant would like its application to be considered in the next application period of that fiscal year, the applicant shall revise and resubmit its application during the subsequent application period to update its investment and hiring commitments in addition to any other revisions necessary, such as its current taxable year and base year, as a result of the applicant's taxable year ending after the last day to submit an application during the prior application period.
Credits
Note: Authority cited: Sections 17059.2 and 23689, Revenue and Taxation Code. Reference: Sections 17059.2, 18410.2 and 23689, Revenue and Taxation Code.
History
1. New section filed 2-20-2014 as an emergency; operative 2-20-2014 (Register 2014, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-19-2014 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 8-18-2014 as an emergency, including amendments operative 8-18-2014 (Register 2014, No. 34). A Certificate of Compliance must be transmitted to OAL by 11-17-2014 or emergency language will be repealed by operation of law on the following day.
3. New section refiled with further amendments 11-17-2014 as an emergency; operative 11-17-2014 (Register 2014, No. 47). A Certificate of Compliance must be transmitted to OAL by 2-16-2015 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 11-17-2014 order, including amendment of subsections (g)(1) and (g)(2)(H), transmitted to OAL 12-31-2014 and filed 2-5-2015; amendments effective 2-5-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 6).
5. Amendment of subsections (b)(38) and (b)(51), new subsections (b)(58)-(59), amendment of subsection (g)(1), new subsections (g)(1)(A)-(B) and amendment of subsections (g)(2)(G)-(H) filed 11-21-2016; operative 1-1-2017 (Register 2016, No. 48).
6. Editorial correction of subsection (b)(7) (Register 2017, No. 4).
7. Amendment of subsection (b)(7), new subsections (b)(28) and (b)(42), subsection renumbering and amendment of subsection (g)(2)(G) filed 11-20-2018; operative 1-1-2019 (Register 2018, No. 47).
This database is current through 5/3/24 Register 2024, No. 18.
Cal. Admin. Code tit. 10, § 8030, 10 CA ADC § 8030
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