It’s not as good as you think.  Rather the reduction is a result of the expiration of the increase contained in the 2009-2010 budget.  All personal income tax brackets will go down by .025%.  Enjoy….until the 2011 crew buts it back on the ballot.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended the R&D credits for another two years.   Because of the heavy burden in producing document and calculating the traditional fixed base percentage, many companies opt for the Alternative Simplified Method despite yielding a lower credit percentage.  There was a big push to increase the Alternative Simplified Credit percentage from 14% to 17%, but the Tax Act didn’t go that far.  For the next two years, taxpayers who choose to use the ASC method will have to live with the 14%.

On December 17, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  The Tax Relief Act extended many important tax rates and programs and some have been curiously left out.   On the Federal level, the Act extends the Empowerment Zones for two more years, but not the Renewal Community Zones.  Fortunately for tax payers, the Empowerment Zone credit per employee is twice the amount of the Renewal Community credit.

Anaheim, Harbor Gateway and Santa Clarita Valley, according to California Newswire.  Nothing posted on the HCD site yet.  Here is the link to the California Newswire story.

The League of California Cities urges everyone to contact their local political leaders and educate them as to the benefits and worthiness of the EZ program.  “City officials from communities with Enterprise Zones are encouraged to begin talking to their legislators now about the jobs and economic benefits these zones bring.”  View the Leage of Cities piece.

San Joaquin County’s governmental bodies have rallied behind a proposed expansion of the region’s business-friendly Enterprise Zone, but economic development leaders say a fight to keep the program alive is upcoming.

San Joaquin County Economic Development Director Fran Aguilera adamantly supports the EZ.  ”The zone is the biggest tool we have to attract business, and to keep them here.  It’s ludicrous. If you do something that hurts businesses … you’re hurting employment.”

Read the story here.

Here is the FTB’s December Tax News.

Sarting toda, the new HCD voucher fees are in effect.  Every application to the state will now cost $15 instead of $10.  Here is the HCD’s Voucher Fee Increase Memo.

California’s New Jobs Credit was originally allocated $400 million to fund the credit.  To date, just over $40 million has been claimed, meaning that just under $360 million remains to be claimed.  The FTB will continue to allow the credit until the last day of the calendar quarter in which the FTB estimates it will have received timely filed original returns claiming the credit that cumulatively total $400 million.  

Track the money here.

A plethora of different business group are collaborating together to host a small business tax forum which will include discussions on taking advantage of the Enterprise Zone Program.  The different groups include Oakland’s Mayor, Alameda County Small Business Development Center, Northern California Small Business Financial Development Corporation, Black Economic Council, Hispanic Chamber of Commerce, East Bay Economic Development Alliance, The Women’s Chamber of Commerce, Oakland Metropolitan Chamber of Commerce, African American Chamber of Commerce, Oakland Chinatown Chamber of Commerce and the Alameda County Bar Association.

 Here is the flyer for the event.