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Tax News
McClintock Appeal update

The November 2007 issue of Tax News included an article regarding the State Board of Equalization (SBE) unpublished decision in the Appeal of Jessica McClintock. Specifically, that article stated that individuals with a documented barrier, as defined under the Job Training Partnership Act (JTPA) 10 percent exception category, could be considered qualified employees for purposes of the enterprise zone hiring credit.

Based on information available at the time of the hearing, the SBE determined that “older worker” was a documented barrier for purposes of the JTPA 10 percent exception, regardless of the individual's economic situation. Since then, Franchise Tax Board (FTB) has obtained Employment Development Department Directive 96-5 that provides program administration information to JTPA administrators, and discusses when an older worker is eligible for JTPA services. This Directive requires that an older worker must be both 55 years or older, and meet low-income guidelines.

FTB has presented this new information to the SBE and requested affirmation that for purposes of the enterprise zone hiring credit, "older worker" as a documented barrier also requires that the individual meet low-income guidelines. We will include information in Tax News on any future updates on this appeal.