California

California offers a variety of grants and tax credits to support small businesses, especially those focused on job creation in high-need areas. Programs like the New Employment Credit and the Homeless Hiring Tax Credit are designed to incentivize hiring, making it easier for California small businesses to grow while giving back to their communities.

Whether you’re hiring new employees or helping marginalized populations enter the workforce, California’s grant and tax credit programs can provide valuable financial support.

New Employment Credit (NEC)

• Purpose: Encourages hiring in economically disadvantaged areas across California.
• Eligibility: Qualifying businesses in designated industries and areas, with new hires meeting wage and residency requirements.
• Benefit: A credit of 35% of wages paid to eligible employees, with a maximum credit of $11,200 per employee annually.
• Application Process: Apply online via the California TCR system within 30 days of hiring.
• More Info: For more details, visit the California Department of Tax and Fee Administration.

Homeless Hiring Tax Credit

• Purpose: Incentivizes businesses to hire individuals experiencing homelessness.
• Eligibility: California businesses hiring employees certified as homeless by a service provider.
• Benefit: Tax credits ranging from $2,500 to $10,000 per eligible employee, based on hours worked, with an annual maximum of $30,000.
• Application Process: Obtain a Homeless Hiring Tax Credit (HHTC) certificate and file with the California income tax return.
• More Info: Visit the California Franchise Tax Board for detailed instructions.

California grants for small nusinesses

California has a wide range of programs aimed at supporting small businesses and incentivizing job creation. Programs like the New Employment Credit and Homeless Hiring Tax Credit are just two examples of how the state encourages small businesses to expand their workforce, particularly in underserved areas and among marginalized populations.

Other relevant programs in California

• California Competes Tax Credit: Provides tax credits for businesses expanding or relocating in California, with up to $644.8 million available for the 2024-2025 fiscal year. Visit the California GO-Biz website.
• Southern California Job Creators Quest Grant: Offers $10,000 grants for small businesses in Southern California counties with 2-20 employees, provided by Founders First CDC.
• EmployABILITY Business Grant: Provides $20,000 to $200,000 for businesses hiring and retaining employees with disabilities in California. Visit the California Department of Rehabilitation for more details.

How to apply for small business grants in California

To apply for small business grants in California, review the eligibility criteria for each program on the respective agency’s website. Additionally, the California Small Business Development Center (SBDC) provides guidance and resources to assist with the application process for state programs and incentives.

Helpful websites for small businesses in California

To get the most current and accurate information about grants, tax credits, and training programs specifically for small businesses in California, it's recommended to contact these organizations directly or visit their websites. They can provide up-to-date details on available programs, eligibility requirements, and application processes.