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Category: California

California Credits

Child Care Credit: For taxable years beginning on or after January 1, 2011, the child and dependent care expenses credit is nonrefundable. You may qualify to claim this credit in 2016 for child and dependent care expenses if you (or your spouse/RDP) paid someone in California to care for your child or other qualifying person while you worked or looked for employment.

Note: If you are a nonresident, you must have earned wages from working in California or earned self-employment income from California business activities. 

 

California Nonrefundable Renter's Credit: If you were a resident of California and paid rent on property in California, which was your principal residence, you may qualify for a credit that you can use to reduce your tax. You qualify for the Nonrefundable Renter's Credit if you meet all of the following.

 

* You were a resident of California in 2016 (military personnel, if you are not a legal resident of California, you do not qualify for this credit. However, your spouse/RDP may claim this credit if he or she was a resident during 2016, and is otherwise qualified.)

 

* Your California adjusted gross income is $39,062 or less if your filing status is single or married/registered domestic partner filing a separate return; or $78,125 or less if you are married/registered domestic partner filing jointly. head of household, or qualified widow(er).

 

* You paid rent for at least half of 2016 on property (including a mobile home that you owned on rented land) in California that was your principal residence.

 

* You cannot be claimed as a dependent by a parent, foster parent, legal guardian, or any other person in 2016. 

 

* For more than half the year in 2016, you did not live in the home of the person who can claim you as a dependent. 

 

* The property you rented was not exempt from California property tax in 2016.

 

* If you are married, neither you nor your spouse/registered domestic partner was granted a homeowner's property tax exemption during 2016.

 

Note: You may still qualify for the credit, even though your spouse/registered domestic partner claimed a homeowner's exemption, as long as each of you maintained a separate residence for the entire year in 2016.

 

If you meet the requirements above, the credit is:

 

* Single, $60

 

* Head of Household or widow(er), $120

 

* Married/registered domestic partner filing separately, $60 each

 

* Married/registered domestic partner filing jointly, $120

 

Child Adoption: For the year in which an adoption decree or an order of adoption is entered (e.g., adoption is final) you are allowed to claim a credit for 50% of the cost of adopting a child who was both:

 

* A citizen or legal resident of the United States.

 

* In the custody of a California public agency or a California political subdivision.

 

This credit is limited to $2,500 for 2016. The excess may be carried to future years until the credit is used.

Note: This credit does not apply when a child is adopted from another country or another state, or was not in the custody of a California public agency or a California political subdivision. Also, any deduction for the expenses used to claim this credit must be reduced by the amount of the child adoption costs credit claimed.

 

Community Development Financial Institution: This credit has been extended for taxable years beginning on or after January 1, 2012 and before January 1, 2017. 20% of each qualified deposit made to a community development financial institution. For more information click here

 

Dependent Parent: You may NOT claim this credit if you used the single, head of household, qualifying widow(er), or married/RDP filing jointly filing status. Claim this credit only if all of the following apply:

 

* You were married/or an RDP at the end of 2016 and you used the married/RDP filing separately filing status.

 

* Your spouse/RDP (Registered Domestic Partner) was not a member of your household during the last six months of the year.

 

* You furnished over one-half the household expenses for your dependent mother’s or father’s home, whether or not she or he lived in your home. If you qualify for the Credit for Joint Custody Head of Household and the Credit for Dependent Parent, claim only one credit. Select the credit that allows the maximum benefit.

 

Enterprise Zone Employee*: Credit has expired, however, the carryover may still be claimed. You may claim this credit only if you have an unused carryover available from a prior year.

 

Farmworker Housing*: This credit has expired. You may claim this credit only if you have an unused carryover available from a prior year.

 

Joint Custody Head of Household: 30% credit percentage or $440 (whichever is less). You may NOT claim this credit if you used the married/RDP filing jointly, head of household, or qualifying widow(er) filing status.

 

Claim the credit if:

 

* unmarried and not an RDP (Registered Domestic Partner) at the end of 2016 (or if married/or an RDP, you lived apart from your spouse/RDP for all of 2016 and you used the married/RDP filing separately filing status);

 

AND

 

* if you furnished more than one-half the household expenses for your home that also served as the main home of your child, step-child, or grandchild for at least 146 days but not more than 219 days of the taxable year.

 

If the child is married or an RDP, you must be entitled to claim a dependent exemption credit for the child.

 

If you qualify for the Credit for Joint Custody Head of Household and the Credit for Dependent Parent, claim only one credit. Select the credit that allows the maximum benefit.

 

Local Agency Military Base Recovery Area (LAMBRA)* Hiring & Sales or Use Tax: For more information FTB 3807 Business incentives for LAMBRAs.

 

Manufacturing Enhancement Area (MEA) Hiring*: FTB 3808 Percentage of qualified wages paid to qualified disadvantaged individual. For more information click here

 

Senior Head of Household: 2% of taxable income or $1,345 or (whichever is less). You may claim this credit if you:

 

1. Were 65 years of age or older on December 31, 2016.*

 

2. Qualified as a head of household in 2014 or 2015 by providing a household for a qualifying individual who died during 2014 or 2015.

 

3. Did not have AGI over $71,370 for 2016.

 

* If your 65th birthday is on January 1, 2017, you are considered to be age 65 on December 31, 2016.

 

Targeted Tax Area (TTA) Hiring & Sales or Use Tax*: Business incentives for TTA businesses – FTB 3809

 

2010 New Home/First-Time Buyer Credit* - To claim the New Home/First-Time Buyer Credits of 2010 you must have received a Certificate of Allocation from the Franchise Tax Board (FTB). The New Home/First-Time Buyer Credits of 2010 are available for taxpayers who purchased a qualified principal residence on or after May1, 2010, and on or before December 31, 2010. Additionally, the New Home Credit is available for taxpayers who purchase a qualified principal residence on or after January 1, 2011, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010.

 

2009 New Home Credit* - For taxable years beginning on or after March 1, 2009, and before March 1, 2010, a home credit against net tax will be allowed for the purchase of a never been occupied home in an amount equal to the lesser of 5% of the purchase price of a qualified principal residence or ten thousand dollars ($10,000).

 

**Repealed Credits: The expiration dates for the credits listed below have passed. However, these credits had carryover provisions. You may claim these credits only if there is a carryover available from prior years. If you are not required to complete Schedule P (540), Alternative Minimum Tax and Credit Limitations – Residents, get form FTB 3540, Credit Carryover Summary, to figure your credit carryover to future years.

 

The credits include:

Agricultural Products Commercial Solar Electric System Commercial Solar Energy
Employee Ridesharing Employer Ridesharing: Large employer Ride Sharing: Small employer
Transit passes, Energy Conservation Farmworker Housing Joint Strike Fighter Wages
Joint Strike Fighter Property Cost Los Angeles Revitalization Zone Hiring & Sales or Use Tax
Low-Emission Vehicles Manufacturers' Investment Orphan Drug
Political Contributions Recycling Equipment Residential Rental & Farm Sales Rice Straw
Ridesharing Salmon & Steelhead Trout Habitat Restoration Solar Energy
Solar Pump Solar or Wind Energy System Water Conservation
Young Infant



*Credits signified with an (*) cannot be e-filed and may need an accompanying form.

 

For further instructions on several of the categories listed above click here.