Bill Text: CA AB1973 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income taxes: credits: qualified employees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-08-12 - In committee: Held under submission. [AB1973 Detail]

Download: California-2009-AB1973-Amended.html

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BILL NUMBER: AB 1973	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Swanson

                        FEBRUARY 17, 2010

   An act to add Sections 17053.76 and 23622.9 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1973, as amended, Swanson. Income taxes: credits: qualified
employees.
   The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws, including a
hiring credit for qualified taxpayers who hire qualified employees,
as defined, subject to specified criteria.
   This bill would, for taxable years beginning on or after January
1, 2010, authorize a hiring credit under those respective laws for
taxpayers who hire qualified employees, as defined.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    This act shall be known and may be
cited as the Reentry Employment Business Tax Credit Act. 
   SECTION 1.   SEC. 2.   Section 17053.76
is added to the Revenue and Taxation Code, to read:
   17053.76.  (a) (1) For each taxable year beginning on or after
January 1, 2010, there shall be allowed a credit against the "net
tax," as defined in Section 17039, an amount as described in
paragraph (2), per each qualified employee employed by the taxpayer
during the taxable year.
   (2) (A) Twenty percent of the gross salary for each qualified
employee employed by the taxpayer, not to exceed $5,000, for the
first year of employment.
   (B) Twenty percent of the gross salary for each qualified employee
employed by the taxpayer, not to exceed $5,000, for the second year
of employment.
   (b) The credit under subdivision (a) shall be allowed only with
respect to the first year of employment if the qualified employee is
employed by the taxpayer for 12 consecutive months from the date of
employment and only with respect to the second year of employment if
the qualified employee is employed by the taxpayer for 24 consecutive
months from the date of employment.
   (c) For purposes of this section, "qualified employee" means an
individual who is an ex-offender employed by the taxpayer in a
part-time or full-time position. "Qualified employee" shall not
include an ex-offender who is required to register as a sex offender
pursuant to Section 290 of the Penal Code, or the equivalent in
another state or territory, under military law, or under federal law,
or was convicted of a serious or violent felony.
   (d) Any deduction or credit otherwise allowed under this part for
the salaries paid or incurred by the taxpayer upon which the credit
is based shall be reduced by the amount of the credit.
   (e) If the credit allowed by this section exceeds the "net tax,"
the excess may be carried over to reduce the "net tax" in the
following year, and succeeding years if necessary, until the credit
is exhausted.
   SEC. 2.   SEC. 3.   Section 23622.9 is
added to the Revenue and Taxation Code, to read:
   23622.9.  (a) (1) For each taxable year beginning on or after
January 1, 2010, there shall be allowed a credit against the "tax,"
as defined in Section 23036, an amount as described in paragraph (2),
per each qualified employee employed by the taxpayer during the
taxable year.
   (2) (A) Twenty percent of the gross salary for each qualified
employee employed by the taxpayer, not to exceed $5,000, for the
first year of employment.
   (B) Twenty percent of the gross salary for each qualified employee
employed by the taxpayer, not to exceed $5,000, for the second year
of employment.
   (b) The credit under subdivision (a) shall be allowed only with
respect to the first year of employment if the qualified employee is
employed by the taxpayer for 12 consecutive months from the date of
employment and only with respect to the second year of employment if
the qualified employee is employed by the taxpayer for 24 consecutive
months from the date of employment.
   (c) For purposes of this section, "qualified employee" means an
individual who is an ex-offender employed by the taxpayer in a
part-time or full-time position. "Qualified employee" shall not
include an ex-offender who is required to register as a sex offender
pursuant to Section 290 of the Penal Code, or the equivalent in
another state or territory, under military law, or under federal law,
or was convicted of a serious or violent felony.
   (d) Any deduction or credit otherwise allowed under this part for
the salaries paid or incurred by the taxpayer upon which the credit
is based shall be reduced by the amount of the credit.
   (e) If the credit allowed by this section exceeds the "net tax,"
the excess may be carried over to reduce the "net tax" in the
following year, and succeeding years if necessary, until the credit
is exhausted.
   SEC. 3.   SEC. 4.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.