17 Nov You Must Reserve Small Business Hiring Credit Now or Lose it (11-17-20)
The CDTFA will begin taking tentative credit reservations on December 1 for the new Small Business Hiring Credit. There is only $100 million in available credit and it will be assigned on a first-come, first-served basis.
The credit is only available for the 2020 tax year and may be claimed against personal income tax, corporation franchise or income taxes, or, at the election of the taxpayer, against sales and use taxes. Taxpayers will reserve the credit with the CDTFA even if they are claiming the credit against their personal income or corporation franchise or income taxes.
The credit is equal to $1,000 for each net increase in qualified employees.
It’s critical that you review the below link to determine if you may be eligible for the credit as well as the link provides a list of information that will be required to apply for the tentative credit reservation. The request for tentative credit reservation begins December 1, 2020 at 8:00 am.