Dear members and friends,
A reminder:
The California New
Jobs Tax Credit is in
effect for tax years
beginning Jan 1, 2009.
Those of you preparing 2009
entity returns this busy
season need to be aware of
this new provision.
Businesses that had 20
employees or less as of last
day of 2008 and had a "net
increase" in qualified
full-time employees in 2009
get a $3,000 credit for each
net addition. There is no
need to apply for
certification or otherwise
jump through bureaucratic
hoops.
The credit is claimed on CA
Form 3527.
The basic provisions are as
follows:
For taxable years beginning
on or after January 1, 2009,
a credit of $3,000 is
available for each increase
in qualified full-time
employees hired by a
qualified employer in the
taxable year.
Qualified employers must
have:
- Employed 20 or less
employees on the last day of
the
preceding taxable year.
- A net increase in
qualified full-time
employees in the current
taxable year compared to the
number in the preceding
taxable year.
If a business first
commences doing business in
California in the current
year, the number of
qualified full-time
employees for the
immediately preceding
taxable year would be zero.
Taxpayers may only claim the
credit on an original timely
filed return received by the
Franchise Tax Board (FTB) on
or before a cut-off date
specified by the FTB. The
FTB will allow a maximum
total of $400 million in
credits under this program.
This credit is allowed on a
first-come, first-served
basis so early filing is
highly recommended. The
credit can be carried
forward for eight years.
An employer may not claim
the credit for those
employees who have qualified
for the following credits:
- Enterprise Zone Credits
- TTA - Targeted Tax Area
- MEA - Manufacturing
Enhancement Area
- LAMBRA - Local Agency
Military Base Recovery Area
Our thanks to Lorna Padia-Markus,
partner at Mowat, Mackie &
Anderson LLP, for sharing
this important information
for small businesses! (510)
893-1120
God Bless America!
