Bill Text: CA AB2041 | 2019-2020 | Regular Session | Amended
Bill Title: Income taxes: credits: qualified employees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-03-16 - In committee: Set, second hearing. Hearing canceled at the request of author. [AB2041 Detail]
Download: California-2019-AB2041-Amended.html
Amended
IN
Assembly
March 09, 2020 |
Introduced by Assembly Member Megan Dahle |
February 03, 2020 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, in an amount that is equal to either 30% of the amount paid or incurred by a microbusiness, as defined, during the taxable year for qualified wages of up to 3 qualified employees, not to exceed $5,000 per qualified employee. The bill would define “qualified employee” to mean a full or part-time employee who is between 18 to 25 years of age and has not previously
received wages from any employer, as specified. The bill would also include additional information required for any bill authorizing a new tax expenditure.
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 17053.75 is added to the Revenue and Taxation Code, to read:17053.75.
(a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2023, there shall be allowed to a qualified taxpayer that hires a qualified full-time employee and pays or incurs wages attributable to work performed by the qualified full-time employee, and that receives a tentative credit reservation for that qualified full-time employee, a credit against the “net tax,” as defined in Section 17039, in an amount calculated under this section.SEC. 2.
Section 23675 is added to the Revenue and Taxation Code, to read:23675.
(a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2023, there shall be allowed to a qualified taxpayer that hires a qualified full-time employee and pays or incurs wages attributable to work performed by the qualified full-time employee, and that receives a tentative credit reservation for that qualified full-time employee, a credit against the “tax,” as defined in Section 23036, in an amount calculated under this section.SEC. 3.
For purposes of complying with Section 41 of the Revenue and Taxation Code, relating to Sections 17053.75 and 23675 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares the following:(a)(1)For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.
(2)The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.
(b)For purposes of this section:
(1)“Microbusiness” means a business with 10 or fewer employees.
(2)“Qualified employee” means a full or part-time employee that meets both of the following criteria:
(A)Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.
(B)Is between 18 to 25 years of age.
(3)“Qualified taxpayer” means a microbusiness that pays or incurs qualified wages.
(4)“Qualified wages” means wages paid or incurred by the qualified taxpayer during the taxable
year to qualified employees.
(5)“Wages” means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.
(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 years if necessary, until the credit is exhausted.
(d)This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
(a)(1)For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.
(2)The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.
(b)For purposes of this section:
(1)“Microbusiness” means a business with 10 or fewer employees.
(2)“Qualified employee” means a full or part-time employee that meets both of the following criteria:
(A)Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.
(B)Is between 18 to 25 years of age.
(3)“Qualified taxpayer” means a microbusiness that pays or incurs qualified wages.
(4)“Qualified wages” means wages paid or incurred by the qualified taxpayer during the
taxable year to qualified employees.
(5)“Wages” means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.
(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 years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
(a)For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:
(1)The goal, purpose, or objective of Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, hereafter “the credits,” is to expand employment opportunities for individuals entering the workforce and alleviate the cost burden on microbusinesses in training individuals entering the workforce for the first time by creating hiring incentives for those individuals.
(2)The performance indicator for the Legislature to use when measuring whether the credits meet the goal, purpose, or objective
specified in paragraph (1) is how many taxpayers are allowed the credits.
(b)Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall annually publish anonymized data on the credits through calendar year 2026.