California Extends New Employment Credit.

• Position: FTB news

The New Employment Credit (NEC) is a California tax credit that encourages hiring and employment in the state. The credit was extended by Senate Bill 855 and is available for taxable years beginning on or after Jan. 1, 2014, and before Jan. 1, 2026.

The NEC is available to businesses located in designated areas in the state that hire qualified full-time employees, receive a tentative credit reservation for that employee and meet other requirements.

Over the last few years, the FTB has identified taxpayers who have incorrectly claimed the NEC on their tax returns when they may actually be claiming a different credit. The FTB has found taxpayers reporting the NEC on their tax returns when they intended to report the repealed Enterprise Zone or the New Jobs Credits. This resulted in adjustment to taxpayers' accounts, and in...