CA Issues Tax Credits to Support $15.5B in Private Investment

California Gov. Gavin Newsom said Friday the state has awarded $120 million in tax credits to eight companies as part of the California Jobs First initiative. The awards will generate more than 2,100 full-time jobs with an average annual salary of over $100,000 and bring in an estimated $15.5 billion in private investment over the next five years, according to Newsom’s office.

The two largest credits, $30 million each, will go to Controlled Thermal Resources to help construct a facility near the Salton Sea to sustainably extract lithium and other critical minerals, and to Pacific Steel, which is poised to construct the first steel mill in California in more than 50 years.

The California Competes Tax Credit was created in 2013 to help businesses grow and stay in California. In 2022, the program was extended for an additional five years with at least $180 million in tax credits available each year through 2028.

“This funding will help businesses create good-paying jobs — from steel manufacturing in Kern County to sustainable lithium production in Imperial Valley — and support the state’s economic dominance for years to come,” Newsom said Friday.

Pictured: Gov. Newsom at Controlled Thermal Resources facility in 2023.