Three companies with plans to invest in either new developments or expand existing facilities and add jobs in the central San Joaquin Valley – including a coveted Nordstrom online-order fulfillment center that the retailer may build in either Fresno or Visalia – are among more than 100 that will receive about $70 million in state tax credits to support job creation.
GO-Biz, the Governor’s Office of Business and Economic Development, announced that the California Competes Tax Credit committee approved the credits Thursday. The companies receiving the tax credits are expected to add nearly 9,400 jobs and invest about $1.3 billion in the state.
Nordstrom, which expects to invest $171 million to build its warehouse and add almost 370 jobs if it locates in either Fresno or Visalia, was approved for a tax credit of $11 million. The Nordstrom project was the second-largest project, and the second-largest tax credit, among 103 applications approved by the California Competes committee on Thursday.
Revolution Plastics LLC, a recycler and manufacturer of plastic film for agriculture, was awarded a tax credit of $500,000 to support its anticipated $15.8 million investment for a plant that would create 65 jobs in either Fresno or Bakersfield. And a Kingsburg company, S&S Metal Fabrication Inc., will receive a $75,000 credit for its investment of about $740,000 to generate four jobs.
The tax credits reduce the amount of state income tax for which the companies are liable. In awarding the credits, the committee considers the number of jobs to be created by a company, the size of investment, wages, anticipated economic effects and the strategic importance of the company. California anticipates awarding $200 million in credits to companies in the 2015-16 fiscal year. In 2014-15, the state allocated about $150 million in credits to 212 companies.