ABC, LLC, is a single-member LLC organized and doing business in California. During the year 2023, ABC LLC generated a New Employment Credit of $25,000. The single member of ABC LLC is an S corporation with total net income of $50,000, which is comprised of $100,000 income not attributable to ABC, LLC and a $50,000 loss from the activities of ABC, LLC. Assume the tax rate on the S corporation is 1.5%. The minimum corporate franchise tax is $800. 

Determine the amount of the New Employment Credit of $25,000 can be used by the S Corporation (the owner of ABC LLC).

Answer rating: 100% (QA)

In California the New Employment Credit NEC is a credit against both personal income tax a... View the full answer