17053.49.
(a) For each taxable year beginning on or after January 1, 2018, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer, an amount equal to 17.5 percent of qualified wages paid or incurred during the taxable year with respect to a qualified employee, not to exceed twenty-five million dollars ($25,000,000) per taxpayer per taxable year.(b) For purposed of this section:
(1) “Qualified employee” means a full-time employee.
(2) (A) “Qualified taxpayer” means a person that is engaged in a trade or business and meets both of the following
conditions:
(i) Is either not engaged in business in this state before January 1, 2018, or is engaged in business in this state before January 1, 2018, and has a net increase in full-time qualified employees on or after January 1, 2018.
(ii) Is an aerospace entity.
(B) A qualified taxpayer shall not include a person that is located within a 25-mile radius of any other person in engaged in a business or trade of like kind.
(3) “Qualified wages” means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.
(c) This credit shall only be allowed to a qualified taxpayer for five consecutive taxable years, beginning on the date that the
qualified taxpayer that meets either condition of clause (i) of subparagraph (A) of paragraph (2) of subdivision (b) is either first engaged in a trade or business in this state or first has a net increase in full-time employees.
(d) In the case where the credit allowed by this section exceeds the “net tax,” the credit may be carried over to reduce the “net tax” in the following taxable year, and the succeeding five years if necessary, until the credit is exhausted.
(e) A deduction otherwise allowed under this part for any amount paid or incurred by the qualified taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed by this section.
(f) (1) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the
purposes of this section.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.