A contract manufacturer which just moved to Valencia from Chatsworth, K Tech Telecommunications Inc., is the latest Santa Clarita company to be awarded a state tax credit.
Canyon Plastics Inc. was the first Santa Clarita firm to be awarded tax credits under the state’s business attraction and retention incentive program, California Competes Tax Credit.
In this last go-round of incentives, K Tech Telecommunications committed to an investment of $720,000 and hiring of at least four full-time employees over the next four years in exchange for a $100,000 tax credit.
Launched by Gov. Jerry Brown and the state’s Go-Biz office in 2014, the program is a business attraction and retention incentive that replaced the state’s Enterprise Zone program.
Under the California Competes Tax Credit program, income tax credits are granted to firms who want to stay and grow in California, or those who agree to come to California.
It replaced the Enterprise Zone program which Brown had criticized, in part, for creating jobs that were often low paying. And, in fact, large big box retailers in the SCV had been taking advantage of tax credits under the old program.
K Tech manufactures and assembles electronic products, said the co-owner.