2023 Instructions for Form FTB 3554 New Employment Credit Booklet

What's New

New Employment Credit Expansion – For taxable years beginning on or after January 1, 2023, and before January 1, 2026, the New Employment Credit (NEC) is expanded for qualified taxpayers engaged in semiconductor manufacturing or semiconductor research and development, electric airplane manufacturing, lithium production, or manufacturing of lithium batteries, hereafter referred to collectively as “SEAL” industries. For SEAL taxpayers only, the following applies:

• A qualified full-time employee is not required to perform their services for the qualified taxpayer in a Designated Geographic Area (DGA).
• Qualified wages are that portion of wages paid by the qualified taxpayer during the taxable year to a qualified full-time employee that exceeds 100% but does not exceed 350% of California minimum wage.

For more information, see California Revenue and Taxation Code (R&TC) Sections 17053.73 and 23626.

Important Information

New Employment Credit

The NEC is available for each taxable year beginning on or after January 1, 2014, and before January 1, 2026. This credit is for a qualified taxpayer that hires a qualified full-time employee on or after January 1, 2014, pays or incurs qualified wages attributable to work performed by that employee and receives a Tentative Credit Reservation (TCR) for that employee. In addition, an annual certification of employment is required with respect to each qualified full-time employee hired in a previous taxable year. In order to be allowed a credit, the qualified taxpayer must have a net increase in the total number of full- time employees working in California, when compared to its base year, both determined on an annual full-time equivalent basis. See Specific Line Instructions, Part I – Net Increase in Full-Time Employees, for more information.

For more information, go to ftb.ca.gov and search for nec.

Reporting Requirement

California law requires the Franchise Tax Board (FTB) to report on FTB’s website the names of employers claiming the credit, the amount of the credit, and the number of new jobs created.

General Information

Purpose

Use form FTB 3554, New Employment Credit, to figure a credit for a qualified taxpayer that hires a qualified full-time employee, pays or incurs qualified wages attributable to work performed by that employee, and receives a TCR for that employee.

The NEC must be claimed on a timely filed original tax return of the qualified taxpayer.

An employer cannot claim the NEC for an employee hired before January 1, 2014.

A. Qualified Taxpayer

A qualified taxpayer is an employer engaged in a trade or business who, during the taxable year, pays qualified wages to a qualified full-time employee and is not an excluded business. A qualified full-time employee must be hired on or after January 1, 2014, and before January 1, 2026. All taxpayers, except those engaged in SEAL industries, must engage in a trade or business within a DGA.

SEAL Industries

For taxable years beginning on or after January 1, 2023, and before January 1, 2026, a qualified taxpayer includes a person or entity engaged in a SEAL industry that is classified under one of the following North American Industry Classification System (NAICS) codes:

It is not required for a taxpayer engaged in a SEAL industry to operate within a DGA.

All qualified taxpayers must receive a TCR from FTB for a qualified full-time employee, and annually certify each qualified full-time employee. For more information, see General Information C, Tentative Credit Reservation.

B. Designated Geographic Area

To qualify for the NEC, qualified taxpayers, except those engaged in SEAL industries, must have a qualified full-time employee performing services for the employer in a designated census tract, pilot area, or former economic develop area, known as the DGA.

The DGA is defined as:

• Designated census tracts that have the highest unemployment and highest poverty in the state.
• Former Enterprise Zones (EZ) (in existence on December 31, 2011, designated in 2012) and any revision to an EZ prior to June 30, 2013, except census tracts within those EZs with the lowest unemployment and poverty levels.
• Former Local Agency Military Base Recovery Areas (LAMBRA) (in existence on July 11, 2013).

The DGA includes census tracts designated by the Department of Finance (DOF). The DOF re-designated the census tracts effective January 1, 2020. Qualified employees hired prior to the re-designation remain eligible for the full 60 months from the date of hire, even if the location where they perform their work is not part of the re-designated census tracts.

Relocating Businesses

A qualified taxpayer who is required to be engaged in business inside of a DGA and relocates to a DGA, will be allowed a NEC for wages paid to each qualified full-time employee employed in the new location only if the taxpayer provides each employee at the previous locations a written offer of employment at the new location, with comparable compensation. Note: This requirement does not apply if the qualified taxpayer is a small business.

This requirement for relocated employees applies if the taxpayer has an increase in the number of qualified full-time employees in a DGA within a 12-month period in which there is a decrease in the number of full-time employees employed in California but outside of the DGA.

For more information, go to ftb.ca.gov and search for nec.

C. Tentative Credit Reservation

A qualified taxpayer is required to obtain a TCR from FTB for a qualified full-time employee within 30 days of completing the Employment Development Department’s (EDD) new hire reporting requirements.

A qualified SEAL taxpayer is also required to obtain a TCR from FTB for qualified full-time employees. For taxable years starting in 2023 only, qualified SEAL taxpayers must obtain the TCR on or before the last day of the month following the close of the taxable year for which the credit is claimed. For all other taxable years, SEAL taxpayers must obtain the TCR within 30 days of completing the EDD new hire reporting requirements.

All qualified taxpayers must obtain the TCR on FTB’s website. For more information about FTB’s online TCR system, go to ftb.ca.gov and search for nec.

D. Annual Certification of Employment

All qualified taxpayers must annually certify that they are still a qualified employer and that each qualified full-time employee hired in a previous taxable year is still qualified in the current taxable year. The annual certification of employment is due on or before the 15th day of the third month of the qualified taxpayer’s current taxable year. For more information on annual certification, go to ftb.ca.gov and search for nec.

E. Qualified Wages

Qualified wages are wages paid by the qualified taxpayer during the taxable year to the qualified full-time employee that exceeds 150% but does not exceed 350% of California minimum wage.

For qualified SEAL taxpayers, qualified wages are wages paid to the qualified full-time employee by the qualified SEAL taxpayer that exceeds exceeds 100% but does not exceed 350% of California minimum wage.

The tentative credit for all qualified taxpayers is determined by multiplying the qualified wages for all qualified employees by 35%.

Wages for salaried employees must be converted to an hourly amount. A reasonable way to do this would be to divide the annualized salary by 2,000 hours.

Qualified wages are wages paid during the 60 month period beginning with the first day the qualified full-time employee commences employment with the qualified taxpayer. For this purpose, commencement of employment or the hire date is the first day for which the individual receives wages/compensation.

For an employer that operates a business that has regularly occurring seasonal or intermittent employment decreases and increases, re-employment of an individual is not a new hire. It is a continuation of the prior employment and does not constitute commencement of employment for the qualified wages test.

F. Minimum Wage

The California minimum wage is:

• $15.50 per hour from January 1, 2023, through December 31, 2023
• $16.00 per hour from January 1, 2024, through December 31, 2024

G. Excluded Businesses

To be a qualified taxpayer, your primary PBA code or NAICS code must not be an excluded one. Excluded businesses are those in temporary help services or retail trades, and those primarily in food services, theater companies and dinner theaters, drinking places (alcoholic beverages), or casinos and casino hotels. These otherwise disqualified businesses may be qualified if they are considered a small business.

The NAICS codes for each of these disqualified industries are:

No sexually oriented businesses may be a qualified taxpayer regardless of their status as a small business as explained below. A sexually oriented business includes a nightclub, bar, or similar commercial enterprise that provides for an audience of two or more individuals live nude entertainment or live nude performances where the nudity is a function of everyday business operations, and where nudity is a planned and intentional part of the entertainment or performance.

Small Business Gross Receipts

A small business is a business that has aggregate gross receipts, less returns and allowances reportable to this state, of less than two million dollars ($2,000,000) during the previous taxable year. For this purpose, “gross receipts” means the sum of the gross receipts from the production of business income, as defined in R&TC Section 25120(a), and the gross receipts from the production of nonbusiness income, as defined in R&TC Section 25120(d).

Determination of whether a taxpayer is a “small business” is made on an annual basis and is determined by each individual entity.

H. Limitations

S corporations may claim only 1/3 of the credit against the 1.5% entity level tax (3.5% for financial S corporations). The remaining 2/3 must be disregarded and may not be used as a carryover. S corporations can pass through 100% of the credit to their shareholders.

If a taxpayer owns an interest in a disregarded business entity [a single member limited liability company (SMLLC) not recognized by California, and for tax purposes is treated as a sole proprietorship owned by an individual or a branch owned by a corporation], the usable credit amount received from the disregarded entity is limited to the difference between the taxpayer’s regular tax figured with the income of the disregarded entity, and the taxpayer’s regular tax figured without the income of the disregarded entity.

Get Form 568, Limited Liability Company Tax Booklet, for more information.

This credit cannot reduce the regular tax below the minimum franchise tax (corporations and S corporations), the annual tax (limited partnerships, limited liability partnerships, and limited liability companies (LLCs) classified as a partnership), the alternative minimum tax (corporations, exempt organizations, individuals, and fiduciaries), the built-in gains tax (S corporations), or the excess net passive income tax (S corporations).

This credit cannot reduce regular tax below the tentative minimum tax. Get Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum Tax and Credit Limitations, for more information.

This credit is not refundable.

Generally, the credit or credit carryover cannot be transferred to another employer unless there was a qualifying merger under the Internal Revenue Code or the credit qualifies under the R&TC Section 23663 for an assignment to an affiliated corporation.

I. Assignment of Credit

Credit earned by members of a combined reporting group may be assigned to an affiliated corporation that is an eligible member of the same combined reporting group. A credit assigned may only be claimed by the affiliated corporation against its tax liability. For more information, get form FTB 3544, Assignment of Credit, or go to ftb.ca.gov and search for credit assignment.

J. Carryover

If the available credit exceeds the current year tax liability or is limited by tentative minimum tax, the unused credit may be carried over for five years or until the credit is exhausted, whichever occurs first. Apply the carryover to the earliest taxable year. In no event can the credit be carried back and applied against a prior year’s tax. Retain all records that document this credit and carryovers. The FTB may require access to these records.

K. Recapture

You may be required to recapture a previously taken credit if a qualified full-time employee is terminated within the first 36 months after beginning employment. The amount of credit that must be recaptured is the amount for that taxable year and all prior taxable years attributed to qualified wages paid to that employee.

You are not required to recapture the credit if you meet any of the following exceptions:

• The employee voluntarily leaves employment.
• The employee becomes disabled and unable to perform the services of that employment, unless the disability is removed before the close of the period and the employer fails to offer re-employment.
• The employee is terminated due to misconduct.
• The employer has a substantial reduction in operations, including reductions due to seasonal employment.
• The employee is replaced by other qualified full-time employees so as to create a net increase in both the number of employees and the number of hours of employment.
• The employment is considered seasonal, and the qualified employee is rehired on a seasonal basis.

Follow the instructions in the tax booklets if you are required to recapture the NEC.

Examples of the NEC Calculations

Example 1

ABC Company is a qualified taxpayer and has a net increase in full-time employees. ABC Company receives the full amount of the tentative credit.

ABC Company is on a calendar year basis and operates entirely within the DGA. For its taxable year 2022, ABC Company has 100 full-time employees based on annual full-time equivalents. During taxable year 2023, ABC Company hired a number of new full-time employees, 2 of which were qualified full-time employees. ABC Company received a TCR for these employees as required.

Assume the following facts:

James Smith was hired on January 1, 2023, at an hourly wage of $24.25 and on July 1, 2023, his hourly wage was increased to $25.25 per hour. James worked 2,000 hours during taxable year 2023. Jane Jones was hired on July 1, 2023, at an hourly wage of $25.25 and worked 1,000 hours during taxable year 2023. The qualified wages and tentative credit are computed as follows:

In its base year, annual full-time equivalents were 100. The annual full-time equivalents for 2023 was 108. The net increase in full-time employees over the base year is 8. The credit generated is computed as follows:

Example 2

ABC Company has a net increase in full-time employees and receives a partial amount of the tentative credit.

Assume the same facts as Example 1, except due to attrition the annual full-time equivalents for taxable year 2023 was 101. The net increase in full-time employees over the base year is 1 (101-100). The credit generated is computed as follows:

Example 3

ABC Company does not have a net increase in full-time employees and receives no amount of the tentative credit.

The annual full-time equivalents for taxable year 2023 was 98. The net increase in full-time employees over the base year is zero (98-100 but it cannot be less than 0). ABC Company cannot claim a credit in taxable year 2023.

Example 4 – Qualified SEAL Taxpayer

XYZ Company, a semiconductor manufacturing company, is a qualified SEAL taxpayer that commenced doing business in California on January 1, 2023, and receives the full amount of the tentative credit.

XYZ Company’s taxable year is on a calendar year, and it is not required to operate in the DGA. During its taxable year 2023, XYZ Company hired additional full-time employees, 2 of whom were qualified full-time employees. Assume the following facts:

Jeff Smith was hired on January 1, 2023, at an hourly wage of $16.50. On July 1, 2023, his hourly wage was increased to $17.50. Jeff worked 2,000 hours during taxable year 2023.

Mary Jones was hired on July 1, 2023, at an hourly wage of $16.50. Mary worked 1,000 hours during taxable year 2023.

The qualified wages and tentative credit are computed as follows:

Since XYZ Company first commenced business in California on January 1, 2023, its base year annual full-time equivalents are zero. Assume its annual full-time equivalents were 5 in taxable year 2023. The net increase in full-time employees over the base year is 5 (5-0). The credit generated is computed as follows:

Specific Line Instructions

Name of taxpayer generating the credit – Enter the name of the taxpayer that generated the tax credit. Also, enter the social security number (SSN), individual taxpayer identification number (ITIN), California Corporation no., federal employer identification number (FEIN), or the California Secretary of State (SOS) file number of the taxpayer in the space provided. Complete this section even if it is the same taxpayer that appears on the California return. Do not enter the word “same.”

Questions A Through C

Corporations, exempt organizations, sole proprietors, estates, trusts, and partnerships generating the credit, complete items A through C.

Investors of pass-through entities, start on line 22.

Question A – An employer is required to obtain a TCR from the FTB for each qualified employee. Only claim a credit for an employee which you obtained a TCR. For more information, see General Information C, Tentative Credit Reservation.

Question B – Check "Yes," if the taxpayer is engaged in a SEAL industry. See General Information Section A for more information.

All other taxpayers check “No.”

Question C – Enter the Principal Business Activity (PBA) code of your principal activity from the PBA codes chart. The PBAs are based on the NAICS.

The entity’s primary line of business is determined on a separate company basis (not a combined group basis) when determining if the corporation is in an excluded industry.

Part I – Net Increase in Full-Time Employees

The net increase in full-time employees is the total number of annual full-time equivalents in the current taxable year, less the annual full-time equivalents in the base year.

Base year

The base year is the year before the 1st qualified employee is hired. The base year is taxable year 2022 for an employer who hired its first qualified full-time employee during taxable year 2023.

Once the base year is established, it does not change from year to year.

For taxpayers who first commence doing business in California during the current taxable year, the number of full-time employees for the base year would be zero. For more information in determining whether the taxpayer has first commenced doing business in this state during the current taxable year, see Legal Rulings 1996-5 and 1999-2, and R&TC Sections 17276(f) and 24416(g).

Annual full-time equivalents working in California

An employer must determine their annual full-time equivalents for their base year, and for each taxable year for which they will claim a credit. The number of full-time equivalents is the number of full-time employees who work the entire year and a pro-rata fraction for full-time employees who did not work the entire year. For full-time employees who worked part of the year, the fraction is determined as follows:

• For a full-time employee paid hourly qualified wages, the total number of hours worked for the taxpayer by the employee (not to exceed 2,000 hours per employee) divided by 2000.
• For a salaried full-time employee, the total number of weeks worked for the qualified taxpayer by the employee divided by 52.

Part-time employees are not included in the calculation of annual full- time equivalents.

Section A and Section B decimal places

For line 4, line 7, and line 8 of Section A, and for line 12, line 15, and line 16 of Section B, enter the result as a decimal (rounded to four decimal places).

Line 8 – For taxpayers who first commence doing business in this state during the taxable year, the number of full-time equivalents for the base year is zero. Enter zero on line 8.

Part II – Available Credit

Line 17 – Enter net increase in full-time employees as a decimal (rounded to four decimal places).

Line 18 –Enter qualified full-time employees. The following are the requirements for a qualified full-time employee:

All Taxpayers

• Taxpayer obtained a TCR from FTB for each qualified employee.
• Is hired on or after January 1, 2019.
• Wages may not exceed 350% of California minimum wage.
• Employee Is paid hourly wages for an average of at least 35 hours per week, or is salaried, and paid for full-time employment (within the meaning of Section 515 of the Labor Code).
• Employee meets one of the following five conditions:
  1. Unemployed for the six months immediately preceding hire. If the individual completed a college or similar program and received a baccalaureate, postgraduate, or professional degree, the completion date must be at least 12 months prior to hire. For purposes of this definition, an individual is unemployed for a period if all the following circumstances apply:
     • Not receiving wages subject to withholding.
     • Not self-employed.
     • Not a full-time student at a high school, college, university, or postsecondary education institution.
  2. Veteran separated from the U.S. Armed Forces in the preceding 12 months.
  3. Recipient of the Earned Income Tax Credit (EITC) in the previous taxable year. For this purpose, an employee is deemed to be an EITC recipient if the EITC was claimed on the last personal income tax return filed before the employee’s commencement of employment.
  4. Ex-offender convicted of a felony.
  5. Current recipient of CalWORKS or general assistance in accordance with the applicable sections of the Welfare and Institutions Code.

Qualified SEAL Taxpayers

• Starting wages must be at least 100% of California minimum wage.

All Other Qualified Taxpayers

• Starting wages must be at least 150% of California minimum wage.
• Performs at least 50% of their services for the taxpayer in the DGA. The employee may work in more than one location in the DGA to meet the requirement.
• Is hired after the DGA is designated.

Line 19 – The applicable percentage is the net increase in full-time employees in California (determined on an annual full-time equivalent basis) divided by the number of qualified full-time employees, for which you received a TCR. The applicable percentage cannot exceed 100% or 1.0000. Enter the result as a decimal (rounded to four decimal places).

Line 20 – The tentative credit amount is the total qualified wages multiplied by hours worked multiplied by 35% (the applicable credit percentage). See the examples of the NEC calculations and use Worksheet 1 to calculate your tentative credit amount. Round your answer to the nearest whole dollar amount.

Line 21 – Enter the total NEC generated amount on this line and on your current tax return. Refer to the credit instructions in the tax booklet for your tax return for more information.

Line 22 – Enter the total amount of credits received from S corporations, estates, trusts, partnerships, or LLCs classified as partnerships.

Line 25a – Credit claimed

Do not include assigned credits claimed on form FTB 3544, Part B, List of Assigned Credit Received and/or Claimed by Assignee.

This amount may be less than the amount on line 24 if your credit is limited by your tax liability. For more information, see General Information H, Limitations, and refer to the credit instructions in your tax booklet. Enter the total NEC claimed amount on this line and on your current tax return. Refer to the credit instructions in the tax booklet for your tax return for more information.

Line 25b – Total credit assigned

Corporations that assign credit to other corporations within the same combined reporting group must complete form FTB 3544, Part A, Election to Assign Credit Within Combined Reporting Group. Enter the total amount of credit assigned from form FTB 3544, Part A, column (g) on this line.

Part III – Credit Recapture

Line 27 – Credit recapture

If you are required to recapture the NEC, enter the total on one of the following California tax returns or schedules:

• Form 100, California Corporation Franchise or Income Tax Return, Schedule J, line 5.
• Form 100S, California S Corporation Franchise or Income Tax Return, Schedule J, line 5 and Schedule K-1 (100S), line 17d.
• Form 100W, California Corporation Franchise or Income Tax Return – Water's Edge Filers, Schedule J, line 5.
• Form 109, California Exempt Organization Business Income Tax Return, Schedule K, line 4.
• Form 540, California Resident Income Tax Return, line 63.
• Form 540NR, California Nonresident or Part-Year Resident Income Tax Return, line 73.
• Form 541, California Fiduciary Income Tax Return, line 37 and Schedule K-1 (541), line 14d.
• Form 565, Partnership Return of Income, Schedule K, line 20c and Schedule K-1 (565), line 20c.
• Form 568, Limited Liability Company Return of Income, Schedule K, line 20c and Schedule K-1 (568), line 20c.

Franchise Tax Board Privacy Notice on Collection

Our privacy notice can be found in annual tax booklets or online. Go to ftb.ca.gov/privacy to learn about our privacy policy statement, or go to ftb.ca.gov/forms and search for 1131 to locate FTB 1131 EN-SP, Franchise Tax Board Privacy Notice on Collection – Aviso de Privacidad del Franchise Tax Board sobre la Recaudación. To request this notice by mail, call 800-338-0505 and enter form code 948 when instructed.

Worksheet 1

Do not attach to form FTB 3554. Keep for your records.

*If the business is a SEAL employer, this figure is 100% of California minimum wage. For all other businesses it is 150% of California minimum wage.

FTB 3554
Principal Business Activity Codes

This list of principal business activities and their associated codes is designed to classify a business by the type of activity in which it is engaged to facilitate the administration of the California Revenue and Taxation Code (R&TC). For taxable years beginning on or after January 1, 1998, these principal business activity codes are based on the North American Industry Classification System published by the United States Office of Management and Budget.

Agriculture, Forestry, Fishing, and Hunting

Crop Production

Code

 

111100

Oilseed & Grain Farming

111210

Vegetable & Melon Farming (including potatoes & yams)

111300

Fruit & Tree Nut Farming

111400

Greenhouse, Nursery, & Floriculture Production

111900

Other Crop Farming (including tobacco, cotton, sugarcane, hay, peanut, sugar beet, & all other crop farming)

Animal Production

112111

Beef Cattle Ranching & Farming

112112

Cattle Feedlots

112120

Dairy Cattle & Milk Production

112210

Hog & Pig Farming

112300

Poultry & Egg Production

112400

Sheep & Goat Farming

112510

Aquaculture (including shellfish & finfish farms & hatcheries)

112900

Other Animal Production

Forestry and Logging

113110

Timber Tract Operations

113210

Forest Nurseries & Gathering of Forest Products

113310

Logging

Fishing, Hunting and Trapping

114110

Fishing

114210

Hunting & Trapping

Support Activities for Agriculture and Forestry

115110

Support Activities for Crop Production (including cotton ginning, soil preparation, planting, & cultivating)

115210

Support Activities for Animal Production (including farriers)

115310

Support Activities for Forestry

Mining

211120

Crude Petroleum Extraction

211130

Natural Gas Extraction

212110

Coal Mining

212200

Metal Ore Mining

212310

Stone Mining & Quarrying

212320

Sand, Gravel, Clay, & Ceramic & Refractory Minerals Mining & Quarrying

212390

Other Nonmetallic Mineral Mining & Quarrying

213110

Support Activities for Mining

Utilities

221100

Electric Power Generation, Transmission & Distribution

221210

Natural Gas Distribution

221300

Water, Sewage, & Other Systems

221500

Combination Gas & Electric

Construction

Construction of Buildings

236110

Residential Building Construction

236200

Nonresidential Building Construction

Heavy and Civil Engineering Construction

237100

Utility System Construction

237210

Land Subdivision

237310

Highway, Street, & Bridge Construction

237990

Other Heavy & Civil Engineering Construction

Specialty Trade Contractors

238100

Foundation, Structure, & Building Exterior Contractors (including framing carpentry, masonry, glass, roofing, & siding)

238210

Electrical Contractors

238220

Plumbing, Heating, & Air-Conditioning Contractors

238290

Other Building Equipment Contractors

238300

Building Finishing Contractors (including drywall, insulation, painting, wallcovering, flooring, tile, & finish carpentry)

238900

Other Specialty Trade Contractors (including site preparation)

Manufacturing

Food Manufacturing

311110

Animal Food Mfg

311200

Grain & Oilseed Milling

311300

Sugar & Confectionery Product Mfg

311400

Fruit & Vegetable Preserving & Specialty Food Mfg

311500

Dairy Product Mfg

311610

Animal Slaughtering & Processing

311710

Seafood Product Preparation & Packaging

311800

Bakeries, Tortilla & Dry Pasta Mfg

311900

Other Food Mfg (including coffee, tea, flavorings, & seasonings)

Beverage and Tobacco Product Manufacturing

312110

Soft Drink & Ice Mfg

312120

Breweries

312130

Wineries

312140

Distilleries

312200

Tobacco Manufacturing

Textile Mills and Textile Product Mills

313000

Textile Mills

314000

Textile Product Mills

Apparel Manufacturing

315100

Apparel Knitting Mills

315210

Cut & Sew Apparel Contractors

315250

Cut & Sew Apparel Mfg (except Contractors)

315990

Apparel Accessories & Other Apparel Mfg

Leather and Allied Product Manufacturing

316110

Leather & Hide Tanning & Finishing

316210

Footwear Mfg (including rubber & plastics)

316990

Other Leather & Allied Product Mfg

Wood Product Manufacturing

321110

Sawmills & Wood Preservation

321210

Veneer, Plywood, & Engineered Wood Product Mfg

321900

Other Wood Product Mfg

Paper Manufacturing

322100

Pulp, Paper, & Paperboard Mills

322200

Converted Paper Product Mfg

Printing and Related Support Activities

323100

Printing & Related Support Activities

Petroleum and Coal Products Manufacturing

324110

Petroleum Refineries (including integrated)

324120

Asphalt Paving, Roofing, & Saturated Materials Mfg

324190

Other Petroleum & Coal Products Mfg

Chemical Manufacturing

325100

Basic Chemical Mfg

325180

Other Basic Inorganic Chemical Manufacturing

325200

Resin, Synthetic Rubber, & Artificial & Synthetic Fibers & Filaments Mfg

325300

Pesticide, Fertilizer, & Other Agricultural Chemical Mfg

325410

Pharmaceutical & Medicine Mfg

325500

Paint, Coating, & Adhesive Mfg

325600

Soap, Cleaning Compound, & Toilet Preparation Mfg

325900

Other Chemical Product & Preparation Mfg

Plastics and Rubber Products Manufacturing

326100

Plastics Product Mfg

326200

Rubber Product Mfg

Nonmetallic Mineral Product Manufacturing

327100

Clay Product & Refractory Mfg

327210

Glass & Glass Product Mfg

327300

Cement & Concrete Product Mfg

327400

Lime & Gypsum Product Mfg

327900

Other Nonmetallic Mineral Product Mfg

Primary Metal Manufacturing

331110

Iron & Steel Mills & Ferroalloy Mfg

331200

Steel Product Mfg from Purchased Steel

331310

Alumina & Aluminum Production & Processing

331400

Nonferrous Metal (except Aluminum) Production & Processing

331500

Foundries

Fabricated Metal Product Manufacturing

332110

Forging & Stamping

332210

Cutlery & Handtool Mfg

332300

Architectural & Structural Metals Mfg

332400

Boiler, Tank, & Shipping Container Mfg

332510

Hardware Mfg

332610

Spring & Wire Product Mfg

332700

Machine Shops; Turned Product; Screw, Nut, & Bolt Mfg

332810

Coating, Engraving, Heat Treating, & Allied Activities

332900

Other Fabricated Metal Product Mfg

Machinery Manufacturing

333100

Agriculture, Construction, & Mining Machinery Mfg

333200

Industrial Machinery Mfg

333310

Commercial & Service Industry Machinery Mfg

333410

Ventilation, Heating, Air-Conditioning, & Commercial Refrigeration Equipment Mfg

333510

Metalworking Machinery Mfg

333610

Engine, Turbine, & Power Transmission Equipment Mfg

333900

Other General Purpose Machinery Mfg

Computer and Electronic Product Manufacturing

334110

Computer & Peripheral Equipment Mfg

334200

Communications Equipment Mfg

334310

Audio & Video Equipment Mfg

334410

Semiconductor & Other Electronic Component Mfg

334412

Bare Printed Circuit Board Manufacturing

334413

Semiconductor and Related Device Manufacturing

334416

Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufacturing

334417

Electronic Connector Manufacturing

334418

Printed Circuit Assembly (Electronic Assembly) Manufacturing

334419

Other Electronic Component Manufacturing

334500

Navigational, Measuring, Electromedical, & Control Instruments Mfg

334610

Manufacturing & Reproducing Magnetic & Optical Media

Electrical Equipment, Appliance, and Component Manufacturing

335100

Electric Lighting Equipment Mfg

335200

Household Appliance Mfg

335310

Electrical Equipment Mfg

335900

Other Electrical Equipment & Component Mfg

335910

Battery Manufacturing

Transportation Equipment Manufacturing

336100

Motor Vehicle Mfg

336210

Motor Vehicle Body & Trailer Mfg

336300

Motor Vehicle Parts Mfg

336410

Aerospace Product & Parts Mfg

336411

Aircraft Manufacturing

336412

Aircraft Engine and Engine Parts Manufacturing

336413

Other Aircraft Parts and Auxiliary Equipment Manufacturing

336414

Guided Missile and Space Vehicle Manufacturing

336415

Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing

336419

Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

336510

Railroad Rolling Stock Mfg

336610

Ship & Boat Building

336990

Other Transportation Equipment Mfg

Furniture and Related Product Manufacturing

337000

Furniture & Related Product Manufacturing

Miscellaneous Manufacturing

339110

Medical Equipment & Supplies Mfg

339900

Other Miscellaneous Manufacturing

Wholesale Trade

Merchant Wholesalers, Durable Goods

423100

Motor Vehicle & Motor Vehicle Parts & Supplies

423200

Furniture & Home Furnishings

423300

Lumber & Other Construction Materials

423400

Professional & Commercial Equipment & Supplies

423500

Metal & Mineral (except Petroleum)

423600

Household Appliances and Electrical & Electronic Goods

423700

Hardware, Plumbing, & Heating Equipment & Supplies

423800

Machinery, Equipment, & Supplies

423910

Sporting & Recreational Goods & Supplies

423920

Toy & Hobby Goods & Supplies

423930

Recyclable Materials

423940

Jewelry, Watch, Precious Stone, & Precious Metals

423990

Other Miscellaneous Durable Goods

Merchant Wholesalers, Nondurable Goods

424100

Paper & Paper Products

424210

Drugs & Druggists’ Sundries

424300

Apparel, Piece Goods, & Notions

424400

Grocery & Related Products

424500

Farm Product Raw Materials

424600

Chemical & Allied Products

424700

Petroleum & Petroleum Products

424800

Beer, Wine, & Distilled Alcoholic Beverages

424910

Farm Supplies

424920

Book, Periodical, & Newspapers

424930

Flower, Nursery Stock, & Florists’ Supplies

424940

Tobacco Products & Electronic Cigarettes

424950

Paint, Varnish, & Supplies

424990

Other Miscellaneous Nondurable Goods

Wholesale Trade Agents and Brokers

425120

Wholesale Trade Agents & Brokers

Retail Trade

Motor Vehicle and Parts Dealers

441110

New Car Dealers

441120

Used Car Dealers

441210

Recreational Vehicle Dealers

441222

Boat Dealers

441227

Motorcycle, ATV, and All Other Motor Vehicle Dealers

441300

Automotive Parts, Accessories, & Tire Retailers

Building Material and Garden Equipment and Supplies Dealers

444110

Home Centers

444120

Paint & Wallpaper Retailers

444140

Hardware Retailers

444180

Other Building Material Dealers

444200

Lawn & Garden Equipment & Supplies Retailers

Food and Beverage Retailers

445110

Supermarkets and Other Retailers (except Convenience)

445131

Convenience Retailers

445132

Vending Machine Operators

445230

Fruit & Vegetable Retailers

445240

Meat Retailers

445250

Fish & Seafood Retailers

445291

Baked Goods Retailers

445292

Confectionery & Nut Retailers

445298

All Other Specialty Food Retailers

445320

Beer, Wine, & Liquor Retailers

Furniture and Home Furnishings Retailers

449110

Furniture Retailers

449121

Floor Covering Retailers

449122

Window Treatment Retailers

449129

All Other Home Furnishings Retailers

Electronics and Appliance Retailers

449210

Electronics & Appliance Retailers (including Computers)

General Merchandise Retailers

455110

Department Stores

455210

Warehouse Clubs, Supercenters & Other General Merch. Retailers

Health and Personal Care Retailers

456110

Pharmacies & Drug Retailers

456120

Cosmetics, Beauty Supplies, & Perfume Retailers

456130

Optical Goods Retailers

456190

Other Health & Personal Care Retailers

Gasoline Stations & Fuel Dealers

457100

Gasoline Stations (including convenience stores with gas)

457210

Fuel Dealers (including Heating Oil and Liquefied Petroleum)

Clothing and Clothing Accessories Retailers

458110

Clothing and Clothing Accessories Retailers

458210

Shoe Retailers

458310

Jewelry Retailers

458320

Luggage & Leather Goods Retailers

Sporting, Hobby, Book, Musical Instrument and Miscellaneous Retailers

459110

Sporting Goods Retailers

459120

Hobby, Toy, & Game Retailers

459130

Sewing, Needlework, & Piece Goods Retailers

459140

Musical Instrument & Supplies Retailers

459210

Book Retailers & News Dealers (including newsstands)

459310

Florists

459410

Office Supplies & Stationery Retailers

459420

Gift, Novelty, & Souvenir Retailers

459510

Used Merchandise Retailers

459910

Pet & Pet Supplies Retailers

459920

Art Dealers

459930

Manufactured (Mobile) Home Dealers

459990

All Other Miscellaneous Retailers (including tobacco, candle, & trophy retailers)

Nonstore Retailers

Nonstore retailers sell all types of merchandise using such methods as Internet, mail-order catalogs, interactive television, or direct sales. These types of Retailers should select the PBA associated with their primary line of products sold. For example, establishments, primarliy selling prescription and non-prescription drugs, select PBA code 456110 Pharmacies & Drug Retailers

Transportation and Warehousing

Air, Rail, and Water Transportation

481000

Air Transportation

482110

Rail Transportation

483000

Water Transportation

Truck Transportation

484110

General Freight Trucking, Local

484120

General Freight Trucking, Long-distance

484200

Specialized Freight Trucking

Transit and Ground Passenger Transportation

485110

Urban Transit Systems

485210

Interurban & Rural Bus Transportation

485310

Taxi and Ridesharing Services

485320

Limousine Service

485410

School & Employee Bus Transportation

485510

Charter Bus Industry

485990

Other Transit & Ground Passenger Transportation

Pipeline Transportation

486000

Pipeline Transportation

Scenic & Sightseeing Transportation

487000

Scenic & Sightseeing Transportation

Support Activities for Transportation

488100

Support Activities for Air Transportation

488210

Support Activities for Rail Transportation

488300

Support Activities for Water Transportation

488410

Motor Vehicle Towing

488490

Other Support Activities for Road Transportation

488510

Freight Transportation Arrangement

488990

Other Support Activities for Transportation

Couriers and Messengers

492110

Couriers & Express Delivery Services

492210

Local Messengers & Local Delivery

Warehousing and Storage

493100

Warehousing & Storage (except lessors of miniwarehouses & self-storage units)

Information

Motion Picture and Sound Recording Industries

512100

Motion Picture & Video Industries (except video rental)

512200

Sound Recording Industries

Publishing Industries

513110

Newspaper Publishers

513120

Periodical Publishers

513130

Book Publishers

513140

Directory & Mailing List Publishers

513190

Other Publishers

513210

Software Publishers

Broadcasting, Content Providers, and Telecommunications

516100

Radio & Television Broadcasting Stations

516210

Media Streaming, Social Networks, & Other Content Providers

517000

Telecommunications (including Wired, Wireless, Satellite, Cable, & Other Program Distribution, Resellers, Agents, Other Telecommunications, & Internet Service Providers)

Data Processing, Web Search Portals & Other Information Services

518210

Computing Infrastructure Providers, Data Processing, Web Hosting, & Related Services

519200

Web Search Portals, Libraries, Archives, & Other Info. Services

Finance and Insurance

Depository Credit Intermediation

522110

Commercial Banking

522130

Credit Unions

522180

Saving Institutions & Other Depository Credit Intermediation

Nondepository Credit Intermediation

522210

Credit Card Issuing

522220

Sales Financing

522291

Consumer Lending

522292

Real Estate Credit (including mortgage bankers & originators)

522299

Intl, Secondary Market, & Other Nondepos. Credit Intermediation

Activities Related to Credit Intermediation

522300

Activities Related to Credit Intermediation (including loan brokers, check clearing & money transmitting)

Securities, Commodity Contracts, and Other Financial Investments and Related Activities

523150

Investment Banking & Securities Intermediation

523160

Commodity Contracts Intermediation

523210

Securities & Commodity Exchanges

523900

Other Financial Investment Activities (including portfolio management & investment advice)

Insurance Carriers and Related Activities

524110

Direct Life, Health, & Medical Insurance Carriers

524120

Direct Insurance (except Life, Health, & Medical) Carriers

524210

Insurance Agencies & Brokerages

524290

Other Insurance Related Activities (including third-party administration of insurance & pension funds)

Funds, Trusts, and Other Financial Vehicles

525100

Insurance & Employee Benefit Funds

525910

Open-End Investment Funds (Form 1120-RIC)

525920

Trusts, Estates, & Agency Accounts

525990

Other Financial Vehicles (including mortgage REITs & closed-end investments funds)

“Offices of Bank Holding Companies” and “Offices of Other Holding Companies” are located under Management of Companies (Holding Companies).

Real Estate and Rental and Leasing

Real Estate

531110

Lessors of Residential Buildings & Dwellings (including equity REITs)

531120

Lessors of Nonresidential Buildings (except Miniwarehouses) (including equity REITs)

531130

Lessors of Miniwarehouses & Self-Storage Units (including equity REITs)

531190

Lessors of Other Real Estate Property (including equity REITs)

531210

Offices of Real Estate Agents & Brokers

531310

Real Estate Property Managers

531320

Offices of Real Estate Appraisers

531390

Other Activities Related to Real Estate

Rental and Leasing Services

532100

Automotive Equipment Rental & Leasing

532210

Consumer Electronics & Appliances Rental

532281

Formal Wear & Costume Rental

532282

Video Tape & Disc Rental

532283

Home Health Equipment Rental

532284

Recreational Goods Rental

532289

All Other Consumer Goods Rental

532310

General Rental Centers

532400

Commercial & Industrial Machinery & Equipment Rental & Leasing

Lessors of Nonfinancial Intangible Assets (except copyrighted works)

533110

Lessors of Nonfinancial Intangible Assets (except copyrighted works)

Professional, Scientific, and Technical Services

Legal Services

541110

Offices of Lawyers

541190

Other Legal Services

Accounting, Tax Preparation, Bookkeeping, and Payroll Services

541211

Offices of Certified Public Accountants

541213

Tax Preparation Services

541214

Payroll Services

541219

Other Accounting Services

Architectural, Engineering, and Related Services

541310

Architectural Services

541320

Landscape Architecture Services

541330

Engineering Services

541340

Drafting Services

541350

Building Inspection Services

541360

Geophysical Surveying & Mapping Services

541370

Surveying & Mapping (except Geophysical) Services

541380

Testing Laboratories & Services

Specialized Design Services

541400

Specialized Design Services (including interior, industrial, graphic, & fashion design)

Computer Systems Design and Related Services

541511

Custom Computer Programming Services

541512

Computer Systems Design Services

541513

Computer Facilities Management Services

541519

Other Computer Related Services

Other Professional, Scientific, and Technical Services

541600

Management, Scientific & Technical Consulting Services

541700

Scientific Research & Development Services

541800

Advertising, Public Relations, & Related Services

541910

Marketing Research & Public Opinion Polling

541920

Photographic Services

541930

Translation & Interpretation Services

541940

Veterinary Services

541990

All Other Professional, Scientific, & Technical Services

Management of Companies (Holding Companies)

551111

Offices of Bank Holding Companies

551112

Offices of Other Holding Companies

Administrative and Support and Waste Management and Remediation Services

Administrative and Support Services

561110

Office Administrative Services

561210

Facilities Support Services

561300

Employment Services

561410

Document Preparation Services

561420

Telephone Call Centers

561430

Business Service Centers (including private mail centers & copy shops)

561440

Collection Agencies

561450

Credit Bureaus

561490

Other Business Support Services (including repossession services, court reporting, & stenotype services)

561500

Travel Arrangement & Reservation Services

561600

Investigation & Security Services

561710

Exterminating & Pest Control Services

561720

Janitorial Services

561730

Landscaping Services

561740

Carpet & Upholstery Cleaning Services

561790

Other Services to Buildings & Dwellings

561900

Other Support Services (including packaging & labeling services & convention & trade show organizers)

Waste Management and Remediation Services

562000

Waste Management & Remediation Services

Educational Services

611000

Educational Services (including schools, colleges, & universities)

Health Care and Social Assistance

Offices of Physicians and Dentists

621111

Offices of Physicians (except mental health specialists)

621112

Offices of Physicians, Mental Health Specialists

621210

Offices of Dentists

Offices of Other Health Practitioners

621310

Offices of Chiropractors

621320

Offices of Optometrists

621330

Offices of Mental Health Practitioners (except Physicians)

621340

Offices of Physical, Occupational & Speech Therapists, & Audiologists

621391

Offices of Podiatrists

621399

Offices of All Other Miscellaneous Health Practitioners

Outpatient Care Centers

621410

Family Planning Centers

621420

Outpatient Mental Health & Substance Abuse Centers

621491

HMO Medical Centers

621492

Kidney Dialysis Centers

621493

Freestanding Ambulatory Surgical & Emergency Centers

621498

All Other Outpatient Care Centers

Medical and Diagnostic Laboratories

621510

Medical & Diagnostic Laboratories

Home Health Care Services

621610

Home Health Care Services

Other Ambulatory Health Care Services

621900

Other Ambulatory Health Care Services (including ambulance services & blood & organ banks)

Hospitals

622000

Hospitals

Nursing and Residential Care Facilities

623000

Nursing & Residential Care Facilities

Social Assistance

624100

Individual & Family Services

624200

Community Food & Housing, & Emergency & Other Relief Services

624310

Vocational Rehabilitation Services

624410

Childcare Services

Arts, Entertainment, and Recreation

Performing Arts, Spectator Sports, and Related Industries

711100

Performing Arts Companies

711210

Spectator Sports (including sports clubs & racetracks)

711300

Promoters of Performing Arts, Sports, & Similar Events

711410

Agents & Managers for Artists, Athletes, Entertainers, & Other Public Figures

711510

Independent Artists, Writers, & Performers

Museums, Historical Sites, and Similar Institutions

712100

Museums, Historical Sites & Similar Institutions

Amusement, Gambling, and Recreation Industries

713100

Amusement Parks & Arcades

713200

Gambling Industries

713900

Other Amusement & Recreation Industries (including golf courses, skiing facilities, marinas, fitness centers, & bowling centers)

Accommodation and Food Services

Accommodation

721110

Hotels (except Casino Hotels) & Motels

721120

Casino Hotels

721191

Bed & Breakfast Inns

721199

All Other Traveler Accommodation

721210

RV (Recreational Vehicle) Parks & Recreational Camps

721310

Rooming & Boarding Houses, Dormitories, & Workers’ Camps

Food Services and Drinking Places

722300

Special Food Services (including food service contractors & caterers)

722410

Drinking Places (Alcoholic Beverages)

722511

Full Service Restaurants

722513

Limited Service Restaurants

722514

Cafeterias, Grill buffets, and Buffets

722515

Snack & Non-alcoholic Beverage Bars

Other Services

Repair and Maintenance

811110

Automotive Mechanical & Electrical Repair & Maintenance

811120

Automotive Body, Paint, Interior, & Glass Repair

811190

Other Automotive Repair & Maintenance (including oil change & lubrication shops & car washes)

811210

Electronic & Precision Equipment Repair & Maintenance

811310

Commercial & Industrial Machinery & Equipment (except Automotive & Electronic) Repair & Maintenance

811410

Home & Garden Equipment & Appliance Repair & Maintenance

811420

Reupholstery & Furniture Repair

811430

Footwear & Leather Goods Repair

811490

Other Personal & Household Goods Repair & Maintenance

Personal and Laundry Services

812111

Barber Shops

812112

Beauty Salons

812113

Nail Salons

812190

Other Personal Care Services (including diet & weight reducing centers)

812210

Funeral Homes & Funeral Services

812220

Cemeteries & Crematories

812310

Coin-Operated Laundries & Drycleaners

812320

Drycleaning & Laundry Services (except Coin-Operated)

812330

Linen & Uniform Supply

812910

Pet Care (except Veterinary) Services

812920

Photofinishing

812930

Parking Lots & Garages

812990

All Other Personal Services

Religious, Grantmaking, Civic, Professional, and Similar Organizations

813000

Religious, Grantmaking, Civic, Professional, & Similar Organizations (including condominium & homeowners associations)

Other

999000

Unclassified Establishments (unable to classify)