California’s latest round of California Competes Tax Credit (CCTC) awards has greenlit $34.4 million in new tax credits to five companies promising nearly $87 million in private investment and over 1,000 new jobs statewide. But behind the headlines, state officials also moved to recapture more than $63 million in previously awarded tax credits from companies that failed to meet obligations.

The California Competes Tax Credit Committee (CCTC), chaired by Dee Dee Myers of GO-Biz, met on June 12 and approved five new awards under Governor Gavin Newsom’s California Jobs First initiative, targeting sectors like clean energy, aerospace, biotech, and software. The awardees include:

• Le Vecke Corporation (Jurupa Valley): $11M credit, 224 new jobs, $30M investment
• RIS Rx LLC (Newport Beach): $10M credit, 453 new jobs, $3.97M investment
• Nextracker LLC (Fremont): $4.5M credit, 255 new jobs, $32.6M investment
• A.S. Aerospace, Inc. (Palmdale & Santa Clarita): $3M credit, 137 new jobs, $19.1M investment
• EVO Power USA, Inc. (Rancho Santa Margarita): $844K credit, 18 new jobs, $1.2M investment

“These investments reinforce California’s continued leadership in the emerging sectors shaping the state’s economic future,” said Myers in the official release.

While the press release focused on expansion and economic vision, the full committee documentation reveals a more complex fiscal picture.

$63M in Credits Recaptured from Non-Compliant or Expired Agreements

In total, the committee recaptured over $63 million from 19 companies whose tax credit agreements were either voluntarily terminated, expired, or violated. Notable examples include:

• VinFast Dealer San Francisco #1 LLC: $20.5M recaptured; the EV firm withdrew from its commitment entirely.
• Cue Health, Inc.: $20M recaptured due to “material breach” of its agreement.
• Cepheid and DesertXpress Enterprises LLC: Together, $21M recaptured due to expiration of milestone deadlines.
• Allogene Therapeutics, Inc., CTC Global, and others: Recaptures ranged from $2.5M to under $100K, often due to unmet milestone criteria or failure to maintain job creation over the required period.

These recaptured funds will now be reallocated in future CalCompetes rounds.

Not All Awards Go as Planned

The high-profile recaptures underscore a persistent challenge for the CalCompetes program: ensuring that companies follow through on their job creation and investment commitments.

While the program has facilitated over $50 billion in private investment and 160,000 jobs since its inception in 2013, GO-Biz officials routinely audit performance and claw back funds when companies fall short.

The June 12 meeting also included modifications to prior recapture decisions. For instance:

• Wonderstorm, Inc., a video game developer, saw an additional $1.45M recaptured beyond a previous $325K.
• King Shock Technology and Enviro Tech Chemical Services also had prior partial recaptures adjusted upward.

Looking Ahead: CCTC in California’s Economic Blueprint

The CalCompetes program plays a central role in Governor Newsom’s California Jobs First Economic Blueprint, which aims to regionalize economic growth and strengthen 21st-century workforce pipelines. The blueprint emphasizes investment in high-growth sectors like clean tech, manufacturing, and software—a focus reflected in the June awardees.

Fast Facts:

• $34.4M in new tax credits
• $86.8M in projected private investment
• 1,087 new full-time jobs
• $63M+ in recaptured credits from prior deals

For full details, including company-level recapture links and agreement PDFs, visit the California Competes publications page.

For inquiries, contact: CalCompetes@gobiz.ca.gov or (916) 322-4051.