Ron Stumpf Talks About California’s 2009 Hiring Tax Credits

California has taken a different approach to stimulating jobs. In February 2009, the Legislature approved $400 million in state income tax credits to small businesses with 20 employees or less that increased their full-time workforce in 2009. The tax credit is worth up to $3,000 for each new full-time worker, pro-rated for the worker’s length of service. Businesses claim the credit when they file their 2009 tax returns. As of March 20, 2010, only $13.7 million has been claimed.

To check the running tally and for more detailed information about this state tax credit, click here, for a direct link to the Franchise Tax Board’s site on this legislation. If any of the $400 million is left over, it will go to small businesses that increase their full-time workforce in 2010. If your company is larger than 20 employees, you haven’t been forgotten. Companies of all sizes that are located within the Santa Ana Enterprise Zone can qualify for lucrative hiring credits that can span a five-year period.

Your ELLS adviser can assist you in identifying qualified new hires and prepare and complete the forms that are required to earn these credits. Be sure to mention any new hires during your tax appointment! Call 714-569-1000 for immediate assistance.