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.
- Visit the Franchise Tax Board's web site for more information about this credit.
- Call the Franchise Tax Board: 800.852.5711