CALIFORNIA NEW JOBS CREDIT

Effective January 1, 2009, small businesses are entitled to a new tax credit of up to $3,000 for each additional full-time employee hired after January 1, 2009.

The Franchise Tax Board has capped the amount of credit at $400,000 and the credit must be claimed on a current year return. Don’t wait to file for this credit if you had 20 or less employees in 2008 and hired new employees after January 1, 2009.