Wednesday, December 08, 2010

New Jobs Tax Credit/ AB 11

For those of you that have hired new employees you may not be aware of a state tax credit of up to $3000.

There was $400 million made available and as of Nov 27th only 39.5 million has been claimed. This is available to businesses with 20 or less employees. There are some limitations to this credit so you should contact your accountant for details.

I am curious how many of you know about this. Please let me know by return email.

Because so few have claimed this there is a bill that has been introduced AB 11[Portantino] that would allow businesses with 20 or less employees and $1 million or less receipts to receive a 20% tax credit on their workers compensation premium. $200 million would be allocated to this reducing the new jobs tax credit to $200 million.

If you meet this criteria it is not dependent on your increasing employees. You could however get both credits if you meet both criteria. If passed the workers compensation credit would take effect immediately. It does require a two thirds vote. It was introduced Dec 6.

What do you think?

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

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