Mary Ann's Baking approved for California Competes Tax Credit for expansion
The company plans to add 105 jobs and invest $5.6 million in its local operations, according to the application filed with the City of Industry.
Mary Ann's Baking Co. Inc. plans to hire over 100 local people and invest in their commercial baking operations according to its application to a California economic incentives.
This week, the California Competes Tax Credit Committee approved Mary Ann’s application. The company is now eligible to receive $5 million from the state in tax credits if it invests 12 million dollars and doubles its workforce in five years.
Mary Ann's Baking, founded in Sacramento in 1961. It operates a production bakery of 120,000 square feet in an industrial zone on Carbide court in Sacramento County south of Sacramento.
Mary Ann's produces products for supermarkets and hotel chains as well as bakeries, convenience stores, and bakerys.
Mary Ann's stated in its application that without the award of the tax credits, the company's expansion could take place in another state and it could move its operations out of the state.
Business Journal's calls to the company for comment were not returned.
California Competes Tax Credit, also known as GO-Biz or the Governor's Office of Business and Economic Development is one of California's economic incentives for growing businesses. The tax credit is administered by the Governor's Office of Business and Economic Development (GO-Biz).
California Competes does not provide any financial assistance to companies. The state instead forgives the tax up to a specified amount, if companies achieve their hiring and investment targets over time.
Mary Ann's employed 117 people in 2022. This is the year that the state uses as its basis. Mary Ann's plan calls for the company to hire 21 new employees this year and another 23 in 2024. Then, Mary Ann's will add more employees each year until it reaches 222 by 2027. This represents a 105-percent increase in full-time staff over five years.
For the credit to be granted, the company must not only hire employees but also meet minimum investment requirements over time. Mary Ann's plans to invest $1 million to $4 million per year for five years in order to reach a minimum investment of $12 million.
Mary Ann's originally occupied a location on Arden Way. Later, it moved to Alhambra Boulevard and now operates south from Gerber Road.
Mary Ann's stated in the grant application that manufacturing jobs at their company pay a minimal of $34,320 per year, and that the average annual salary of full-time workers will be around $43,000.