There are three new tax credits that can be claimed on the California Income Tax Return: The New Employment Credit, the California Competes Credit and the College Access Credit.Continue Reading
The New Employment Credit is available to employers who hire at least one qualified full-time employee on or after January 1, 2014 who incur wages in a designated geographic area. These areas are census tracts that have the highest unemployment and poverty in the state, according to ftb.ca.gov. The employer will be allowed to take the credit if they had a net increase in the total number of full-time employees.
The California Competes Credit is for businesses that choose to move to California or who choose to continue to do business in California. The credit agreement is negotiated by the Governor’s Office of Business and Development and approved by the California Competes Tax Credit Committee, states business.ca.gov. Businesses awarded this credit then claim it on their tax return using the credit code 233.
The College Access Credit is for taxpayers who contributed to the College Access Tax Credit Fund, which is program that provides financing to private higher education institutions. The California Educational Facilities Authority will provide certificates to taxpayers who qualify for the credit, which they may claim by using the credit code 235 on their tax return, according to treasurer.ca.gov. For 2014, the tax credit is based on 60 percent of the amount contributed by the taxpayer to the fund.Learn more about Taxes