Governor Newsom extends business incentive program, bolstering California’s nation-leading job creation

SACRAMENTO – Governor Gavin Newsom and the Legislature continued their work to ensure California maintains its status as one of the largest economies in the world and the biggest contributor to jobs nationwide, as the Governor signed into law Senate Bill 180, extending California’s successful business incentive program, CalCompetes. The legislation extends the program, which was scheduled to sunset next year, an additional five years to fiscal year 2032-33 — helping to extend economic benefits for years to come.

Since 2019, over $1.8 billion in tax credits have been awarded to 271 businesses through the CalCompetes Tax Credit program in exchange for a commitment of $37.6 billion in capital investments and more than 75,000 new, full-time jobs in California.

Some notable companies that have received the tax credit in recent years include:

• Bosch Semiconductor, which is investing more than $1.2 billion and creating 140 new jobs in Roseville to expand and renovate a semiconductor manufacturing plant
• Element Biosciences, which is investing $127.2 million to expand its research and development operations in San Diego and San Jose, creating 422 new jobs
• General Atomics, which is investing $38 million to expand fusion energy research and development operations in Poway
• Hadrian, which is creating 650 new jobs and investing $52 million in Torrance and Northern California to expand their aerospace component manufacturing
• Samsung Semiconductor, which is scaling its San Jose semiconductor manufacturing & research and development with a $79.5 million investment, creating 400 jobs
• Pacific Steel, which is investing $542.9 million and creating 447 new jobs as part of its manufacturing expansion in Kern County
• Vast, which is investing $87 million to expand its space station research, development, and manufacturing footprint in Long Beach, creating 657 new jobs

This program, along with other investments to foster talent and innovation statewide, have helped make California a national leader in jobs, innovation, and business capital. 

More jobs

In 2026, even as national job growth slowed during President Trump’s second term, California saw its strongest calendar year start since 2022. The Golden State continues to lead the nation in job creation, adding approximately 103,600 jobs over the past year, according to U.S. Bureau of Labor Statistics data. That total makes up 17% of national job growth — surpassing California’s population share. California’s job growth this year is higher than any other state and is home to four of the nation’s fastest-growing job markets this year. 

Additionally, new data from the U.S. Bureau of Labor Statistics (BLS) showing California workers increased productivity by 4.2% in 2025. Representing about 14% of national output, California had the largest influence on national productivity. 

More businesses 

The Golden State continues to lead the nation economically, outpacing all states and every developed nation, according to a recent Bloomberg analysis. In 2025, California continued a 16-year growth streak, growing faster than the second-largest state, Texas.

California also has more businesses than any other state, including Florida and Texas, supporting strong job creation and expanded economic opportunity for workers across the state. California is home to more than 4.3 million small businesses, representing 99.8% of all businesses in the state and employing 7.6 million people.

Nation-leading industries

California continues to lead the nation as the #1 state across key areas of economic strength and innovation, including: 

• New business starts
• Manufacturing
• Venture capital funding
• High-tech business
• Agriculture

No state comes close 

According to Bloomberg, there isn’t even one major industry in any of the other 49 states that comes close to California:

• California’s $539 billion of GDP in 2023 from real estate, rental and leasing beats No.2 Texas by 61%.
• The $414 billion from information dwarfs No.2 New York by 128%.
• The $412 billion from manufacturing is 41% greater than No.2 Texas
• The $257 billion from health care and social assistance exceeds No.2 New York by 59%.
• The $151 billion from construction beats No.2 Texas by 19%.
• The $121 billion from accommodation and food services is 63% greater than No. 2 Florida.
• The $125 billion from transportation and warehousing exceeds No.2 Texas by 30%.
• The $55 billion from arts, entertainment and recreation beats No. 2 New York by 68%.
• The $48 billion from agriculture, forestry, fishing and hunting is 150% larger than No. 2 Texas

A nation-and world-leading economy  

California’s economy continues to outperform both the nation and global competitors.  California’s per-capita GDP is higher than that of the United States, China, and Germany — the only three national economies larger than California. Over the past 25 years, California’s economy has grown by 90%, significantly outpacing national growth of 69%.   

According to a recent Bloomberg analysis, California generated 40 % of the U.S. stock market growth while accounting for less than 12 % of the nation’s population and captured two-thirds of all U.S. venture capital.