how should the following be fixed: "Form 3554: Credit Owner must be entered"

Taxpayers use form FTB 3554, New Employment Credit, to figure a credit for a qualified taxpayer that hires a qualified full-time employee and pays or incurs qualified wages attributable to work performed by that employee in a Designated Geographic Area(DGA) and receives a Tentative Credit Reservation(TCR) for that employee.

1.  Open CA return:
2. Continue to the screen Take a look at California credits and taxes
3. Scroll down to Business and investment credits
4. Select Start/Update next to New Employment Credit 

If that doesn't apply to you, delete the form:

In TurboTax Desktop/CD: 

• Select "FORMS" from the top right corner
• Scroll down to find "Form 3554" select and then press the delete button on your keyboard.
• It will ask if you want to delete. Press yes and then it will get delete it. 

In TurboTax Online

• From the left menu column click on TAX  TOOLS, then TOOLS.
• In the Tools window, choose the link "Delete a form."
• In the list of forms find that particular CA Form 3554 you need to delete.  It will then ask you to confirm.