CEO Guide to Site Selection
#50
California
CEO Rank on Best & Worst States for Business
THE GLOBAL HOME OF DREAMERS AND DOERS
While it’s hard to overlook the growing number of companies moving their headquarters from California to other states, the Golden State remains an economicpowerhouse with the 5th-largest gross domestic product in the world. CEOs often lambast California’s business climate and regulations, yet they don’t hesitate to set up shop and access the country’s top talent market. While Tesla, Oracle, Palantir and Hewlett-Packard Enterprise have made announcements to leave the state in the past year,companies like Google, Apple, L’Oréal and Takeda Pharmaceuticals are doubling down.
TAXES
top corporate income tax
on the Tax Foundation’s State Business Tax Climate Index ranking
EDUCATION
of students graduated high school in 2019
of adults age 25 and older have a bachelor’s degree or higher
UNEMPLOYMENT RATE
RIGHT TO WORK STATE
No
QUALITY OF LIFE
POPULATION GROWTH
increase between 2010 and 2020
KEY INCENTIVES
California Competes Tax Credit: Offers a flexible income tax credit for businesses that come, stay and grow in the state. Applications are accepted three times per year, and tax credit agreements are reviewed and negotiated by GO-Biz and the California Competes Tax Credit Committee.
California Research Credit: Offers a tax credit of up to 15% to taxpayers engaged in qualified research activities to discover new technology, develop a new businesscomponent or pursue a “process of experimentation.”
Sales and Use Tax Exemption for Manufacturing: Offers a partial exemption of sales and use tax on certain manufacturing and R&D equipment purchases and leases.
Advanced Transportation and Manufacturing Sales and Use Tax Exemption: California Alternative Energy and Advanced Transportation Financing Authority offers a full sales and use tax exclusion for manufacturers that promote alternative energy and advanced transportation.
EDCs
California Governor’s Office of Business and Economic Development
business.ca.gov
Greater Sacramento Economic Council
selectsacramento.com
Los Angeles Economic Development Corporation
laedc.org
San Diego Regional Economic Development Corporation
sandiegobusiness.org
San Francisco Office of Economic & Workforce Development
oewd.org
HIGHLIGHTED PROGRAM OR INITIATIVE
In April 2021, GO-Biz announced Source Diverse Source Local, a public-private partnership to strengthen an inclusive procurement and resilient California-based supplychain. The initiative is funded by a donation from Google and will build programming to recruit, sponsor and convene corporations, industry leaders and stakeholders todevelop content and expand statewide expertise.
BIG DEALS
- Fisker announced in October 2020 it will establish a new global headquarters in Los Angeles County.
- Google announced in March 2021 it would expand its foot- print and add new jobs at its satellite facility in San Diego.
- Apple announced in April 2021 it will add 5,000 employ ees to its workforce in San Diego by 2026.
- Takeda Pharmaceuticals announced in July 2021 a $126 million expansion in Thousand Oaks.
- Anheuser-Busch announced in August 2021 a $64 million expansion at its brewery in Los Angeles.
- L’Oréal USA announced it will open a second headquarters in El Segundo in early-2022.
BIG COMPANIES
53 Fortune 500 companies headquartered in state, including
- Apple
- Chevron
- Wells Fargo
- Intel
- Disney
- Hewlett Packard Enterprise
- Cisco Systems
- HP
- Oracle