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SACRAMENTO — Three companies doing business in the Central Valley are among the first 29 business statewide to receive tax credits from the state’s California Competes tax credit allocation program, Go Biz announced.
The California Competes Tax Credit (CCTC) Committee approved $28.9 million in tax credits Thursday. The first round of tax credit awards is expected to create almost 6,000 jobs and generate over $2 billion in investments in California.
“These credits provide significant incentives for companies to invest, create jobs and strengthen California’s economy,” said State Treasurer Bill Lockyer, a member of the California Competes Tax Credit Committee. “Unlike some tax incentive programs, this one has a competitive selection process and requires real accountability from businesses. To be awarded credits, companies must demonstrate how the credits will help create jobs and then make the investments they promise.”
Flowers Baking Company in Modesto, Amazon Fulfillment Services in Tracy and Professional Asbestos and Lead Services in Stockton will each get hundreds of thousands of dollars in tax credits as incentive to expand and hire in California.
Flowers Baking Company, which produces Sara Lee whole grain white, Homepride split top wheat and Nature’s Own breads at its facility in Modesto’s Beard Industrial Complex, will receive a $300,000 tax credit. The agreement calls for Flowers to invest $25 million to expand its production lines and hire 20 more full time workers at a minimum pay of $35,000 over the next five years.
Amazon will get a tax credit of just under $1.6 million over five years to build new fulfillment centers in the state and expand its existing center in Tracy. Under the agreement, Amazon has to hire another 1,550 workers statewide at a minimum pay of $17,500 and invest a total of $225 million over five years.
In Stockton, Professional Asbestos and Lead Services will receive a $100,000 tax credit as incentive to purchase equipment, hire 71 more full-time workers and increase full-time workers’ pay from a minimum of $55,000 to $70,000 over five years.