California Designates Three Pilot Areas for New Employment Credit

The franchise tax board has designated three pilot areas for purposes of the New Employment Credit (NEC) against personal and corporation franchise and income taxes until December 31, 2017:

  • Fresno Pilot Area
  • Merced Pilot Area
  • Riverside Pilot Area

These pilot areas encompass former Enterprise Zone areas of each of the former Fresno and Merced enterprise zone areas that have the highest unemployment and highest poverty in the state. The Riverside pilot area includes specified census tracts in Riverside County. The pilot area designation may be extended for an additional period of up to three calendar years, by GO-Biz. The NEC is available for each taxable year beginning 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 geographic area (DGA) and that receives a tentative credit reservation for the qualified full-time employee.

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