Has the taxpayer limited the qualified wages based on hire date?
The percentage of qualified wages allowed as a credit is based on the date of hire. • For combined reports, was the credit properly intrastated and limited by the zone tax limitation and Schedule P limitation (if applicable)? To verify that the credit has been properly intrastated, check the statement of combined computation of tax to see if the credit was used to reduce the tax of the corporation that incurred the credit. If the credit claimed exceeds the tax of that particular corporation, the credit was not properly intrastated and an adjustment to disallow the excess credit may be necessary. For the zone tax limitation, check that the taxpayer used the intrastated income (not the combined California income) of the corporation claiming the credit on the Computation of Credit Limitation Worksheet (Worksheet VII for taxable years 1997 – 2001 and Schedule Z for taxable years 2002 and later), Line 1. For the Apportioning Worksheet (Worksheet V), check to see that the total property and
