Tax Incentives

For information about tax incentives available to employers call the EDD Business Services Information Line at (415) 507-2100.

Work Opportunity Tax Credit – Available to employers who hire individuals from certain target groups, including people with disabilities. Employers may be able to reduce their federal tax liability by as much as $2,400 per new hire.
Disabled Access Credit – Helps small businesses cover the cost of making their businesses accessible. The average cost for accommodations is $50, but employers may qualify for up to $5,000 in tax credits.
Architectural and Transportation Tax Deduction – Businesses may take an annual deduction of up to $15,000 for expenses incurred to remove physical, structural, and transportation barriers.
“d0e549” Earned Income Credit (also sometimes referred to as the Earned Income Tax Credit) – This credit is available to some taxpayers based on the amount of their earned income. Effective January 1, 2008, all California employers are required to notify all of their employees of the federal Earned Income Tax Credit (EITC).

State Payroll Tax Information – The MEC offers no-fee state payroll tax seminars, either classroom-style or Web-based (Webinars). Both the classroom seminars and webinars are designed to help employers comply with the State of California payroll tax laws. The classroom seminars are offered in a variety of locations throughout California. They are customized to benefit everyone–established businesses, those just getting started, individuals anticipating going into business, and payroll agents–and the instructors encourage audience participation. The webinars, on the other hand, allow you to learn on your timetable, at your own pace, wherever you choose to access the Internet.