CAtax_creditpct_of_payroll

California New Employment Credit

NEW-EMPLOYMENT · California

Summary

Credit equal to 35% of qualified wages for employees hired and working in designated geographic areas (Designated Geographic Areas / DGAs). Credit is allocated first-come-first-served (Tentative Credit Reservation system) against an annual statewide cap. Excludes retail, food service, theater, and temporary help service industries.

Benefit

Percentage: —
Flat: —
Duration: —
Max annual: — (taxpayer)
Max total: — (taxpayer)
Carryforward: —

Program metadata

Distribution: allocated
Claimant subject: business
Refund/transfer election: none
Program family: —
Effective: —
Sunset: —
Application deadline: —
Transfer discount: —

Hard requirements (2)

zone_typeHiring must occur within a California Designated Geographic Area — DGA (zone_type=distressed; state-specific label in incentive_geo_zones)
excluded_industryRetail, food service, theater, and temporary help industries are excluded from credit eligibility

Preference / tiering rules (0)

None.

NAICS industries (0)

Any.

Geo zones (1)

distressed — · California Designated Geographic Areas (DGAs)

Tags (2)

allocation_mechanism: fcfs_tentative_reservation
notes: Annual statewide cap allocated first-come-first-served; deferred detail to future_proposals §21

Tax bases

corporate_income_taxprimary

Source

https://www.ftb.ca.gov/forms/credit-table.html

FTB Form 3554 (New Employment Credit)

Last verified: 2026-04-15

Allocating agency administers Tentative Credit Reservation (TCR) system. Allocation is first-come-first-served; once annual cap is exhausted, no new allocations for that year regardless of qualification.