New Employment Credit
The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2026, to a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, and pays or incurs qualified wages attributable to work performed by the qualified full-time employee in a designated census tract or economic development area [herein referred to as a designated geographic area (DGA)], and that receives a tentative credit reservation for that qualified full-time employee. In addition, an annual certification of employment is required with respect to each qualified full-time employee hired in a previous taxable year. In order to be allowed a credit, the qualified taxpayer must have a net increase in the total number of full-time employees in California.
• NEC Quick Facts - Use this document to see if your business may qualify for the NEC.
• Frequently Asked Questions - These FAQs outline the requirements, credit computation, and how to claim the credit.
• DGA Mapping Tool - Use this tool to determine if a location is in a DGA.
• New Employment Credit Reservation - Use this tool to request a reservation.
• Annual Certification of Employment - Use this tool to certify your employees each year.
• New Employment Credits Claimed – A searchable database of taxpayers who claimed the credit.