The New Employment Credit (NEC) is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2021, to a qualified taxpayer employer 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 (referred to as a designated geographic area (DGA)). 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. The link below to the FAQ provides information from the Franchise Tax Board outlining the requirements, credit computation, and how to claim the credit. The DGA Mapping tool, linked below, provides a searchable database where you can see if a location is in the DGA.
· Frequently Asked Questions DGA Mapping Tool