Bill Text: CA AB1586 | 2017-2018 | Regular Session | Amended
Bill Title: Income and corporation taxes: credit: wages.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2018-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1586 Detail]
Download: California-2017-AB1586-Amended.html
|
Amended
IN
Assembly
March 21, 2017 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 1586 |
| Introduced by Assembly Member Gallagher |
February 17, 2017 |
An act to amend Section 17010 of the Revenue and Taxation Code, relating to taxation. add Sections 17053.50 and 23650 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1586, as amended, Gallagher.
Personal income taxes. Income and corporation taxes: credit: wages.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for each taxable year beginning on and after January 1, 2020, would allow a credit against the taxes imposed under both laws to a taxpayer in an amount equal to the qualified wages paid or incurred during the taxable year to a qualified employee, defined to mean an employee who has little to no functional hearing, not to exceed 35% of the first $6,000 of qualified wages.
This bill would take effect immediately as a tax levy.
The Personal Income Tax Law imposes a tax on the entire taxable income of a resident taxpayer, provides for a specified treatment of the income of nonresidents, and provides, among other things, that specified definitions govern the construction of that law.
This bill would make a nonsubstantive change to a definition provision.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.50 is added to the Revenue and Taxation Code, to read:17053.50.
(a) For each taxable year beginning on or after January 1, 2020, there shall be allowed to a taxpayer as a credit against the “net tax,” as defined in Section 17039, an amount equal to the qualified wages paid or incurred to a qualified employee during the taxable year, not to exceed 35 percent of the first six thousand dollars ($6,000) of qualified wages.(b) For purposes of this section:
(1) “Qualified employee” means an employee who has little to no functional hearing.
(2) “Qualified wages” means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.
(3) A taxpayer shall not include a sexually oriented business, as described in clause (v) of subparagraph (C) of paragraph (11) of subdivision (b) of Section 17053.73.
(c) A deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed by this section.
(d) Section 41 does not apply to the credit allowed by this section.
SEC. 2.
Section 23650 is added to the Revenue and Taxation Code, to read:23650.
(a) For each taxable year beginning on or after January 1, 2020, there shall be allowed to a taxpayer as a credit against the “tax,” as defined in Section 23036, an amount equal to the qualified wages paid or incurred to a qualified employee during the taxable year, not to exceed 35 percent of the first six thousand dollars ($6,000) of qualified wages.(b) For purposes of this section:
(1) “Qualified employee” means an employee who has little to no functional hearing.
(2) “Qualified wages” means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.
(3) A taxpayer shall not include a sexually oriented business, as described in clause (v) of subparagraph (C) of paragraph (11) of subdivision (b) of Section 17053.73.
(c) A deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed by this section.
(d) Section 41 does not apply to the credit allowed by this section.
SEC. 3.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.“Taxable year” means either the calendar year or the fiscal year upon the basis of which the taxable income is computed under this part. If no fiscal year has been established, “taxable year” means the calendar year.
“Taxable year” means, in the case of a return made for a fractional part of a year under this part or under regulations prescribed by the Franchise Tax Board, the period for which the return is made.
