What is true regarding the California Competes Tax Credit?

The correct answer highlights an important aspect of the California Competes Tax Credit program. Unused credits can indeed be carried forward for up to six years. This provision allows businesses to benefit from the tax credit even if they do not utilize the entire amount in the year it is awarded. The ability to carry forward unused credits provides greater flexibility for businesses to plan their finances and optimize their tax obligations over time.

It's important to note that businesses must still apply for the credit through a competitive process, and the timing and specifics of this process can vary. However, the key point with the carryforward provision is that it enhances the usability of the credit, thus providing a robust incentive for businesses to invest and grow within California's economy.