California, New Jobs Credit Update

The Franchise Tax Board (FTB) has announced that as of June 30, 2012, $121,123,174 ($117,441,362 as of June 3, 2012) in total New Jobs Credit was generated on personal income tax and business entity tax returns filed/processed. California has allocated $400 million for this tax credit. Taxpayers may only claim the credit on an original timely filed return received by the FTB on or before a cut-off date specified by the FTB. The cut-off date is the last day of the calendar quarter within which the FTB estimates it will have received timely filed original returns claiming the credit that cumulatively total $400 million. A new jobs credit of up to $3,000 per additional full-time employee hired is allowed to qualified small businesses with 20 or less employees.