The California New Jobs Tax credit is effective for taxable years beginning on or after 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.
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.
Employers are eligible for the tax 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.
For more information about the California New Jobs Tax Credit click here