California New Employment Credit Information
The Enterprise Zone Hiring Credit was replaced by the New Employment Credit effective January 1, 2014. To obtain a credit, a qualified taxpayer must hire a qualified full-time employee on or after January 1, 2014 and pay qualified wages attributable to work performed by the qualified full-time employee in a Designated Geographic Area (DGA). In addition, the qualified taxpayer must receive a Tentative Credit Reservation (TCR) from the Franchise Tax Board (within 30 days of complying with the EDD new hire reporting requirement) for that qualified full-time employee, and they must certify each qualified employee on an annual basis going forward. On top of all this, the Governor just announced that qualified taxpayers located inside […]
Legislative action resulted in the repeal of the Enterprise Zone Act and the dissolution of Enterprise Zones (EZ) effective December 31, 2013. The California Department of Housing and Community Development (HCD) has added an Enterprise Zone wind-down page to its website. In order to allow EZ businesses an opportunity to apply for hiring tax credits already earned for qualified hires made before January 1, 2014, vouchers may be applied for and issued until December 31, 2014. This is the only state EZ benefit which will remain available after the repeal of the EZ program on December 31, 2013. Click