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Category Archives: FTB

LAO Reveals Break in Revenue Neutrality Promise

In a response to Governor Brown’s May revision of California’s budget, the Legislative Analysts Office revealed that the tax incentives enacted in 2013 to replace the Enterprise Zone program have failed to live up to their promise. A press release from Governor Brown’s office date July 11, 2013 stated: “By providing a hiring tax credit […]

Update on the California New Employment Credit (NEC)

About a year ago, we reviewed the status of the business incentive programs that California enacted as replacements for the Enterprise Zone program: When California did away with its enterprise zone tax incentive program in 2013, it replaced that program with three new tax incentives: (1) the California Competes tax credit, (2) a partial sales […]

California New Employment Credit Update

We recently reviewed the status of California’s business incentive programs that replaced the Enterprise Zone program in 2013. We noted that the New Employment Credit (NEC) seemed to be falling significantly short of expectations. The legislation included a requirement that the FTB report to the Legislature each year on the performance of that credit and, […]

Performance Review For California’s Enterprise Zone Replacements

When California did away with its enterprise zone tax incentive program in 2013, it replaced that program with three new tax incentives: (1) the California Competes tax credit, (2) a partial sales tax exemption on manufacturing and R&D related equipment, and (3) the New Employment hiring tax credit (NEC). At the time, a press release […]

FTB To Hold Interested Parties Meeting On California Competes Credit

The California FTB will hold an interested parties meeting on February 19, 2015 to discuss the requirement in the new California Competes Tax Credit that FTB review the books of taxpayers awarded the credit. From the announcement: Topic On November 7, 2014, the Franchise Tax Board issued FTB Notice 2014-02 to inform taxpayers of the […]

FTB Notice Regarding Procedures for Reviewing Books of California Competes Recipients

The FTB has posted a notice explaining its procedures for reviewing the books of taxpayers who are awarded California Competes Credits.

Governor Brown Designates Three Pilot Areas for New Employment Credit

From the Governor’s website: SACRAMENTO – Building on efforts to grow California’s economy and help businesses create jobs, Governor Edmund G. Brown Jr. today announced new tax incentives for employers hiring workers in Fresno, Merced and Riverside. “The state’s economy is steadily improving and more than a million Californians are back to work after the […]

FTB On Vouchering Deadlines

In FTB’s March “Tax News” includes a section regarding the timing of obtaining Enterprise Zone vouchers for qualified employees hired before 1/1/2014. FTB makes clear their position that taxpayers will not be be allowed to claim a credit unless they have a voucher from the local zone, even if they have the documentation to support […]

FTB New Employment Credit Updates

The FTB has made numerous updates to its New Employment Credit page.

FTB Tax News February 2014 – Includes Enterprise Zone Wind Down Details

Here is the FTB Tax News newsletter for February 2014. Pages 5-7 explain changes related to the elimination of the Enterprise Zone credits. Page 15 discusses the New Employment Credit.

FTB Relaunches DGA Mapping Tool

The FTB has relaunched its online mapping tool of Designated Geographic Areas for the New Employment Credit:

California’s Film Tax Credit vs the California Competes Tax Credit and the AMT

The California Legislature recently passed AB 1173 enabling recipients of the film production tax credit to reduce their tentative minimum tax for tax years starting in 2011 with the credit. Clearly the Legislature recognized that a credit which is unable to reduce TMT is severely limited in its usefulness. The BOE confirmed in the 2009 […]

FTB Releases Online Mapping Tool for New California Employment Credit

The FTB has released an online mapping tool to see if addresses are located within the new “Designated Geographic Areas”:

FTB Publishes FAQ on Enterprise Zone Repeal and New Credits

The FTB has published a page of FAQs dealing with the repeal of the Enterprise Zone program and the new tax incentives enacted to replace it.

FTB “Tax News” September 2013

FTB’s September 2013 “Tax News” newsletter has the following to say about changes to the Enterprise Zone program: Assembly Bill 93, signed into law on July 11, 2013, repeals all enterprise zones on January 1, 2014. Another major change limits any credit carryovers for qualified employers, including entity flow-through owners, to 10 years for taxable […]

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