California New Employment Credit

New Employment Credit
2023, new employment credit booklet 3554, California forms & instructionsTAXABLE YEAR

2023

CALIFORNIA FORM

3554

New Employment Credit

Attach to your California tax return.

□ SSN or ITIN   □ CA Corporation no.  □ FEIN

Name(s) as shown on your California tax return

California Secretary of State (SOS) file number

□ SSN or ITIN   □ CA Corporation no.  □ FEIN

Name of taxpayer generating the credit. See instructions.

California Secretary of State (SOS) file number

A. Did the taxpayer receive a tentative credit reservation for all claimed employees? If no, stop. See instructions.  .  .  .  .  .  .  .  .  .  . 	A.	 □ Yes	
B. Check “Yes,” if the taxpayer is engaged in:
#	 Semiconductor manufacturing or semiconductor research and development
with a NAICS code that begins with 3344.
#	 Electric airplane manufacturing with a NAICS Code that begins with 3364.
#	 Lithium production or manufacturing of lithium batteries and the NAICS code of the business
is 212390, 325180, or 335910. All other businesses, check “No.” See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	
B.	
□ Yes	
C. Principal Business Activity (PBA) code of the business .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	
C.

□ No

□ No

Part I  Net Increase in Full-Time Employees
Section A – Enter your base year     . See Part I instructions for base year rules.
Complete Section A to calculate the total number of annual full-time equivalents working in California during the base year. See Part I, instructions for
base year rules.
1
2
3
4
5
6
7
8

1
2
3
4
5
6
7
8

Number of full-time hourly and salaried employees that were employed for the entire taxable year.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Number of full-time hourly employees that were employed for less than 52 weeks during the taxable year.  .  .  .  .  .  .  .  .  .  .  .  .  .
Total number of hours worked by employees in line 2 (not to exceed 2,000 hours per employee).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Divide line 3 by 2000. See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Number of full-time salaried employees that were employed for less than 52 weeks during the taxable year.  .  .  .  .  .  .  .  .  .  .  .  .
Total number of weeks worked by employees in line 5 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Divide line 6 by 52. See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Base year annual full-time equivalents. Add lines 1, 4 and 7. See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

	.
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Section B – Taxable year 2023.
Complete Section B to calculate the total number of annual full-time equivalents in California during the current taxable year.
9
10
11
12
13
14
15
16

Number of full-time hourly and salaried employees that were employed for the entire taxable year.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Number of full-time hourly employees that were employed for less than 52 weeks during the taxable year.  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Total number of hours worked by employees in line 10 (not to exceed 2,000 hours per employee).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Divide line 11 by 2000. See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Number of full-time salaried employees that were employed for less than 52 weeks during the taxable year.  .  .  .  .  .  .  .  .  .  .  .  .  .
Total number of weeks worked by employees in line 13 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Divide line 14 by 52. See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Current year annual full-time equivalents. Add lines 9, 12 and 15. See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

9
10
11
12
13
14
15
16

	.
	.
	.

Part II  Available Credit
17 Net increase in full-time employees. Subtract line 8 from line 16. If the amount on line 17 is zero
or less, stop, you do not qualify.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
17
18 Total qualified full-time employees. See instructions.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
18
19 Applicable percentage. Divide line 17 by line 18 (not to exceed 1.0000).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
19
20 Tentative credit. See instructions.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 20 	
00
21 Credit generated. Multiply line 20 by line 19 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
21
22 Pass-through new employment credit(s) from Schedule K-1 (100S, 541, 565, or 568). See instructions. .  .  .  .  .  .  .  .  .  .  .  .  .  .
22
23 Credit carryover from prior year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
24 Total available new employment credit. Add line 21, line 22, and line 23.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
24
25a Credit claimed. Enter the amount of the credit claimed on the current year tax return. See instructions.
	(Do not include any assigned credit claimed on form FTB 3544, Part B.) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 	 25a
  b	Total credit assigned. Enter the total amount from form FTB 3544, Part A, column (g).
If you are not a corporation, enter -0-. See instructions.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
25b
26 Credit carryover available for future years. Add line 25a and line 25b, subtract the result from line 24. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
26

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00
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00
00
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Part III  Credit Recapture
27 Credit recapture. See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

For Privacy Notice, get FTB 1131 EN-SP.

8431233

27

FTB 3554  2023  Side 1

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Extracted from PDF file 2023-california-form-3554.pdf, last modified January 2024

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More about the California Form 3554 Corporate Income Tax Tax Credit TY 2023

Please attach this form to your California tax returns. If you are a full-time employee, this form requires your tax information relating to net increase and available credit.

We last updated the New Employment Credit in February 2024, so this is the latest version of Form 3554, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 3554 directly from TaxFormFinder. You can print other California tax forms here.

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Related California Corporate Income Tax Forms:

TaxFormFinder has an additional 174 California income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the California Form 3554.

Form Code	Form Name
3554 Booklet	New Employment Credit Booklet

Download all CA tax forms View all 175 California Income Tax Forms

Form Sources:

California usually releases forms for the current tax year between January and April. We last updated California Form 3554 from the Franchise Tax Board in February 2024.

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Form 3554 is a California Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of California Form 3554

We have a total of ten past-year versions of Form 3554 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2023 Form 3554

2023, new employment credit booklet 3554, California forms & instructions

2022 Form 3554

2022 New Employment Credit Booklet 3554, California Forms & Instructions

2021 Form 3554

2021 California Form 3554 New Employment Credit

2020 Form 3554

2020 FORM 3554 New Employment Credit

2019 Form 3554

2019 Form 3554 - New Employment Credit

2018 Form 3554

2018 Form 3554 - New Employment Credit

2017 Form 3554

2017 Form 3554 - New Employment Credit

2016 Form 3554

2016 3554 New Employment Credit

2015 Form 3554

2015 Form 3554 -- New Employment Credit

2014 Form 3554

2014 Form 3554 -- New Employment Credit

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