Bill Text: CA AB1890 | 2021-2022 | Regular Session | Amended
Bill Title: Income taxes: credits: COVID-19 supplemental paid sick leave.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2022-04-20 - Re-referred to Com. on REV. & TAX. [AB1890 Detail]
Download: California-2021-AB1890-Amended.html
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Amended
IN
Assembly
April 19, 2022 |
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Amended
IN
Assembly
March 10, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 1890
| Introduced by Assembly Member Choi (Coauthors: Assembly Members Chen and Voepel) (Coauthors: Senators Jones, Nielsen, and Wilk) |
February 09, 2022 |
An act to add and repeal Sections 17052.9 and 23643 of the Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
AB 1890, as amended, Choi.
Income taxes: credits: COVID-19 supplemental paid sick leave.
The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2023, would allow a credit against the taxes imposed by those laws to employers, as specified, for the expenses of complying with specified COVID-19 supplemental paid sick leave requirements.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax
expenditure.
This bill would also make findings and declarations related to a gift of public funds.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17052.9 is added to the Revenue and Taxation Code, to read:17052.9.
(a) For taxable years beginning on or after January 1, 2021, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:
(1) “Qualified amount” means an amount equal to the amount paid in COVID-19 supplemental paid sick leave benefits pursuant to Section 248.6 of the Labor Code.
(2) “Qualified
taxpayer” means an employer, as that term is defined in subdivision (b) of Section 245.5 of the Labor Code, that employs more than 25 employees.
(c) 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 taxable year, and succeeding four years, if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SEC. 2.
Section 23643 is added to the Revenue and Taxation Code, to read:23643.
(a) For taxable years beginning on or after January 1, 2021, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the “tax,” as defined in Section 23036, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:
(1) “Qualified amount” means an amount equal to the amount paid in COVID-19 supplemental paid sick leave benefits pursuant to Section 248.6 of the Labor Code.
(2) “Qualified taxpayer” means an employer, as that term is defined in
subdivision (b) of Section 245.5 of the Labor Code, that employs more than 25 employees.
(c) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding four years, if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SEC. 3.
(a) For purposes of complying with Section 41 of the Revenue and Taxation Code, the goals, purposes, and objectives of the tax expenditures allowed by Sections 17052.9 and 23643 of the Revenue and Taxation Code, as added by this act, are to provide relief for businesses required to provide additional paid sick leave due to the COVID-19 pandemic.(b) The performance indicators used to determine whether the tax expenditure is achieving its stated goal, purpose, and objective, shall be as follows:
(1) The number of taxpayers allowed the tax credit.
(2)The average dollar value of tax credits allowed.
(2) The average credit amount on tax returns claiming the credit.
(c) (1) The Franchise Tax Board shall, no later than January 10, November 1, 2024, report to the Legislature the number of taxpayers allowed claiming a tax credit, and the average dollar amount of the credit allowed,
claimed,
pursuant to Sections 17052.9 and 23643 of the Revenue and Taxation Code, as added by this act.
(2) The report required by this subdivision shall be submitted pursuant to Section 9795 of the Government Code.
(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
