Forest ProductsTax Credit Sourcebook

California · Economic Development · CA-COMP-001

California Competes Tax Credit

Publication revised September 24, 2026. Sourcebook page 46.

Credit amount / calculation

Negotiated award through competitive application cycles.

Business fit and eligible activity

An expanding mill or wood manufacturer can compete for a negotiated income-tax credit based on jobs, investment and strategic value. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.

Eligibility and practical use

California Competes is a negotiated credit for businesses locating or expanding in California. A mill must present a competitive project and meet the investment and employment commitments in its agreement. The award is allocated across five tax years, not paid automatically when equipment is purchased. Page

Illustrative business benefit

Assume an executed agreement awards $100,000 over five years in equal installments. That is $20,000 per year, not a $100,000 first-year reduction. This is an assumed negotiated award, not a percentage earned automatically on the project budget.

Timing / first action

Seek approval before starting the overall project, including site work or construction. Contact the administering agency and secure the required approval before the project is publicly or contractually committed.

Official sources

Related programs

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