Bill Text: CA AB151 | 2015-2016 | Regular Session | Amended
Bill Title: Income taxes: credits: apprenticeships.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB151 Detail]
Download: California-2015-AB151-Amended.html
BILL NUMBER: AB 151 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 20, 2015
AMENDED IN ASSEMBLY APRIL 21, 2015
INTRODUCED BY Assembly Member Rodriguez
JANUARY 15, 2015
An act to add and repeal Section 3073.7 of the Labor Code, and to
add and repeal Sections 17053.11, 19560.3, and 23667 of the Revenue
and Taxation Code, relating to taxation, to take effect immediately,
tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 151, as amended, Rodriguez. Income taxes: credits:
apprenticeships.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws. Existing law
provides for the establishment of apprenticeship programs in various
trades, to be approved by the Chief of the Division of
Apprenticeship Standards in any trade in the state or in a city or
trade area whenever the apprentice training needs justify the
establishment.
This bill, for taxable years beginning on or after January 1,
2016, and before January 1, 2020, would allow a credit against the
taxes imposed under those tax laws in an amount equal to $1 for each
hour a registered apprentice worked in the taxable year, up to $2,000
for each registered apprentice
for up to 10 registered apprentices , as defined, trained
by the taxpayer in the taxable year. This bill would provide
that the credit would have an aggregate cap of $10,000,000 for each
calendar year. This bill would require the Division of
Apprenticeship Standards in the Department of Industrial Relations,
among other things, to establish a procedure for taxpayers, in the
form and manner jointly prescribed by the Division of Apprenticeship
Standards and the Franchise Tax Board, to apply and receive a
certificate for purposes of the credit. This bill would also require
the Division of Apprenticeship Standards to prepare reports for each
of the 5 calendar years beginning on January 1, 2017, and before
January 1, 2022, containing specified information relating to the
credits, to be submitted to the Assembly and Senate Appropriations
Committees, the Assembly Revenue and Taxation Committee, and the
Senate Governance and Finance Committee on or before March 1 of the
following calendar year, commencing March 1, 2018.
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. Section 3073.7 is added to the Labor Code, to read:
3073.7. (a) The Division of Apprenticeship Standards shall
prepare reports on the apprenticeship income tax credits allowed
under Sections 17053.11 and 23667 of the Revenue and Taxation Code.
The reports shall be for each of the five calendar years beginning on
January 1, 2017, and before January 1, 2022, and shall include, but
not be limited to, the following information:
(1) The number of companies or businesses taking advantage of the
apprenticeship income tax credit.
(2) The number of apprentices participating in the apprenticeship
programs and the number of apprentices who completed an
apprenticeship program which was the basis of the apprenticeship
income tax credits allowed under Sections 17053.11 and 23667 of the
Revenue and Taxation Code.
(3) The number of apprentice program graduates hired by the
taxpayer after the apprenticeship training was completed for which
the taxpayer was allowed a credit under Sections 17053.11 and 23667
of the Revenue and Taxation Code for training that apprentice.
(4) Information on the employment status of individuals who have
completed an apprenticeship to the extent the information is
available.
(5) The fiscal impact of the apprenticeship income tax credits.
(b) This report shall be submitted to the Assembly and Senate
Appropriations Committees, the Assembly Revenue and Taxation
Committee, and the Senate Governance and Finance Committee on or
before March 1 of the following calendar year, commencing March 1,
2018.
(c) This section shall be repealed on January 1, 2023.
SEC. 2. Section 17053.11 is added to the Revenue and Taxation
Code, to read:
17053.11. (a) For each taxable year beginning on or after January
1, 2016, and before January 1, 2020, there shall be allowed a credit
against the "net tax," as defined in Section 17039, in an amount
equal to one dollar ($1) for each hour a registered apprentice worked
during the taxable year, up to two thousand dollars ($2,000), for
each registered apprentice trained by the taxpayer in the taxable
year. year, not to exceed 10 registered
apprentices per taxable year.
(b) For purposes of this section, "registered apprentice" means an
individual who meets all of the following requirements:
(1) Is 16 years of age or older at the time of application into
the program.
(2) Meets one of the following requirements:
(A) Has not obtained a high school diploma and is enrolled in high
school or a General Education Development test preparation program.
(B) Has obtained a high school diploma or General Education
Development credential while participating in the apprenticeship.
(3) Is trained by the taxpayer through an apprenticeship program
that meets all of the following requirements:
(A) The apprenticeship program is approved by the Chief of the
Division of Apprenticeship Standards pursuant to Chapter 4
(commencing with Section 3070) of Division 3 of the Labor Code and is
also registered with the Office of Apprenticeship at the United
States Department of Labor.
(B) The program is provided pursuant to an apprenticeship
agreement as described in Section 3077 of the Labor Code.
(C) The minimum term in hours for the program is 2,000 hours.
(c) (1) (A) A credit shall only be allowed under this section for
the taxable year if the taxpayer has received the certificate
described in subparagraph (B) from the Division of Apprenticeship
Standards in the Department of Industrial Relations. A certificate is
required for each taxable year. The taxpayer shall provide a copy of
the certificate to the Franchise Tax Board upon request.
(B) The Division of Apprenticeship Standards shall do all of the
following:
(i) Establish a procedure for taxpayers, in the form and manner
jointly prescribed by the Division of Apprenticeship Standards and
the Franchise Tax Board, to apply and receive a certificate for
purposes of this section.
(ii) Verify that the taxpayer is training during the taxable year
an individual that meets the requirements to be a registered
apprentice as described in subdivision (b).
(iii) Provide the taxpayer with a certificate for the registered
apprentice. The certificate shall contain the name of the taxpayer
and the name of the apprentice, a brief description of the
apprenticeship, the primary location of the apprenticeship, and any
other information the Division of Apprenticeship Standards or the
Franchise Tax Board deems relevant.
(iv) Annually provide the Franchise Tax Board with a list of the
names of the taxpayers that received certificates and the names of
the registered apprentices of the taxpayer. The list may also contain
any other information from the certificates.
(v) Inform the Franchise Tax Board if the Division of
Apprenticeship Standards has knowledge that the training of a
registered apprentice is terminated prior to the completion of the
apprenticeship program after the taxpayer has received a certificate.
(2) The Division of Apprenticeship Standards may adopt rules and
regulations as reasonably necessary to effectuate this subdivision,
but shall consult with the Franchise Tax Board.
(d) In the case where 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 four years, if necessary,
until the credit is exhausted.
(e) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, except as otherwise specified in subdivision (c).
(f) (1) Except as provided in paragraph (2), if the training of a
registered apprentice is terminated prior to the completion of the
apprenticeship program, any unused carryover of the credit shall be
canceled and any previously claimed credit that reduced net tax shall
be recaptured by increasing the tax imposed by this part for the
taxable year in which the training is terminated.
(2) Paragraph (1) shall not apply if the training of a registered
apprentice was terminated due to any of the following:
(A) The registered apprentice voluntarily leaves the
apprenticeship program.
(B) The registered apprentice, before the end of the completion of
the apprenticeship program described in paragraph (3) of subdivision
(b), becomes disabled and unable to perform the services of that
program, unless that disability is removed before the close of the
period of that program and the taxpayer fails to offer reinstatement
to the program for that apprentice.
(C) The training of a registered apprentice was terminated due to
the misconduct, as defined in Sections 1256-30 to 1256-43, inclusive,
of Title 22 of the California Code of Regulations, of that
apprentice.
(D) The training of a registered apprentice was terminated due to
a substantial reduction in the trade or business operations of the
taxpayer.
(g) A deduction otherwise allowed under this part for any amount
paid or incurred by the qualified taxpayer in training a registered
apprentice as a trade or business expense shall be reduced by the
amount of the credit allowed by this section.
(h) The aggregate amount of credits allowed under this section and
Section 23667 shall not exceed ten million dollars ($10,000,000) for
each calendar year.
(h)
(i) This section shall remain in effect only until
December 1, 2020, and as of that date is repealed.
SEC. 3. Section 19560.3 is added to the Revenue and Taxation Code,
to read:
19560.3. (a) The Franchise Tax Board shall provide the Division
of Apprenticeship Standards in the Department of Industrial Relations
with any information necessary to prepare the report required
pursuant to Section 3073.7 of the Labor Code.
(b) This section shall be repealed on January 1, 2023.
SEC. 4. Section 23667 is added to the Revenue and Taxation Code,
to read:
23667. (a) For each taxable year beginning on or after January 1,
2016, and before January 1, 2020, there shall be allowed a credit
against the "tax," as defined in Section 23036, in an amount equal to
one dollar ($1) for each hour a registered apprentice worked during
the taxable year, up to two thousand dollars ($2,000) for each
registered apprentice trained by the taxpayer in the taxable
year. year, not to exceed 10 registered apprentices
per taxable year.
(b) For purposes of this section, "registered apprentice" means an
individual who meets all of the following requirements:
(1) Is 16 years of age or older at the time of application into
the program.
(2) Meets one of the following requirements:
(A) Has not obtained a high school diploma and is enrolled in high
school or a General Education Development test preparation program.
(B) Has obtained a high school diploma or General Education
Development credential while participating in the apprenticeship.
(3) Is trained by the taxpayer through an apprenticeship program
that meets all of the following requirements:
(A) The apprenticeship program is approved by the Chief of the
Division of Apprenticeship Standards pursuant to Chapter 4
(commencing with Section 3070) of Division 3 of the Labor Code and is
also registered with the Office of Apprenticeship at the United
States Department of Labor.
(B) The program is provided pursuant to an apprenticeship
agreement as described in Section 3077 of the Labor Code.
(C) The minimum term in hours for the program is 2,000 hours.
(c) (1) (A) A credit shall only be allowed under this section for
the taxable year if the taxpayer has received the certificate
described in subparagraph (B) from the Division of Apprenticeship
Standards in the Department of Industrial Relations. A certificate is
required for each taxable year. The taxpayer shall provide a copy of
the certificate to the Franchise Tax Board upon request.
(B) The Division of Apprenticeship Standards shall do all of the
following:
(i) Establish a procedure for taxpayers, in the form and manner
jointly prescribed by the Division of Apprenticeship Standards and
the Franchise Tax Board, to apply and receive a certificate for
purposes of this section.
(ii) Verify that the taxpayer is training during the taxable year
an individual that meets the requirements to be a registered
apprentice as described in subdivision (b).
(iii) Provide the taxpayer with a certificate for the registered
apprentice. The certificate shall contain the name of the taxpayer
and the name of the apprentice, a brief description of the
apprenticeship, the primary location of the apprenticeship, and any
other information the Division of Apprenticeship Standards or the
Franchise Tax Board deems relevant.
(iv) Annually provide the Franchise Tax Board with a list of the
names of the taxpayers that received certificates and the names of
the registered apprentices of the taxpayer. The list may also contain
any other information from the certificates.
(v) Inform the Franchise Tax Board if the Division of
Apprenticeship Standards has knowledge that the training of a
registered apprentice is terminated prior to the completion of the
apprenticeship program after the taxpayer has received a certificate.
(2) The Division of Apprenticeship Standards may adopt rules and
regulations as reasonably necessary to effectuate this subdivision,
but shall consult with the Franchise Tax Board.
(d) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "net tax" in
the following year, and succeeding four years, if necessary, until
the credit is exhausted.
(e) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, except as otherwise specified in subdivision (c).
(f) (1) Except as provided in paragraph (2), if the training of a
registered apprentice is terminated prior to the completion of the
apprenticeship program, any unused carryover of the credit shall be
canceled and any previously claimed credit that reduced tax shall be
recaptured by increasing the tax imposed by this part for the taxable
year in which the training is terminated.
(2) Paragraph (1) shall not apply if the training of a registered
apprentice was terminated due to any of the following:
(A) The registered apprentice voluntarily leaves the
apprenticeship program.
(B) The registered apprentice, before the end of the completion of
the apprenticeship program described in paragraph (3) of subdivision
(b), becomes disabled and unable to perform the services of that
program, unless that disability is removed before the close of the
period of that program and the taxpayer fails to offer reinstatement
to the program for that apprentice.
(C) The training of a registered apprentice was terminated due to
the misconduct, as defined in Sections 1256-30 to 1256-43, inclusive,
of Title 22 of the California Code of Regulations, of that
apprentice.
(D) The training of a registered apprentice was terminated due to
a substantial reduction in the trade or business operations of the
taxpayer.
(g) A deduction otherwise allowed under this part for any amount
paid or incurred by the qualified taxpayer in training a registered
apprentice as a trade or business expense shall be reduced by the
amount of the credit allowed by this section.
(h) The aggregate amount of credits allowed under this section and
Section 17053.11 shall not exceed ten million dollars ($10,000,000)
for each calendar year.
(h)
(i) This section shall remain in effect only until
December 1, 2020, and as of that date is repealed.
SEC. 5. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
