Tax Credits & Incentives
California New Jobs Tax Credit
CALIFORNIA NEW JOBS TAX CREDIT
About the credit:
• Effective for taxable years beginning on or after January 1, 2009.
• A new tax credit of $3,000 for each additional full-time employee hired is available to small businesses with 20 or less employees beginning January 1, 2009.
• The credit must be claimed on a timely filed original return received by the Franchise Tax Board on or before a cut-off date specified by the Franchise Tax Board.
An employer will qualify for the credit if:
• Each qualified full-time hourly employee is paid wages for a minimum of 35 hours per week.
• On the last day of the preceding taxable year, they employed a total of 20 or fewer employees.
• There is a net increase in full-time employees compared to the number of full-time employees employed in the preceding taxable year.
An employer may not claim the credit for those employees who are any of the following:
• Certified as a qualified employee in an enterprise zone, targeted tax area, a manufacturing enhancement area, or a local agency military base recovery area.
• An employee whose wages are included in calculating any other credit allowed.
Claiming the credit
• Claim the credit on a 2009 Personal Income Tax or Business Entity Tax Return using the credit form for the New Jobs Tax Credit.
• Check http://www.ftb.ca.gov/businesses/New_Jobs_Credit.shtml for any updated information regarding this credit.
• Call Franchise Tax Board: 800.852.5711