Bill Text: CA AB2164 | 2013-2014 | Regular Session | Amended

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Bill Title: Income taxes: credit: education and training.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Introduced - Dead) 2014-05-05 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2164 Detail]

Download: California-2013-AB2164-Amended.html

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BILL NUMBER: AB 2164	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 11, 2014

INTRODUCED BY   Assembly Member Patterson
   (Coauthors: Assembly Members Chávez, Harkey, and Waldron)
   (Coauthors: Senators Vidak and Wright)

                        FEBRUARY 20, 2014

   An act to add and repeal Sections 17053.13 and 23623.2 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2164, as amended, Patterson. Income taxes: credit: education
and training.
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
   This bill would, for taxable years beginning on or after January
1, 2014, and before January 1, 2019, allow a credit under both laws
in an amount equal to 50% of the costs paid or incurred by a taxpayer
for qualified education and training, as defined, of a qualified
employee, as specified.
   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.  This act shall be known and may be cited as the
California Career Advancement Tax Credit.
  SEC. 2.  Section 17053.13 is added to the Revenue and Taxation
Code, to read:
   17053.13.  (a) (1) For taxable years beginning on or after January
1, 2014, and before January 1, 2019, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 50 percent of the costs paid or incurred by the taxpayer
during the taxable year for the qualified education and training of a
qualified employee, subject to paragraph (2).
   (2) The credit allowed by this section shall not exceed two
thousand five hundred dollars ($2,500) per qualified employee per
taxable year.
   (b) For purposes of this section:
   (1) "Qualified education and training" means either of the
following:
   (A) Education or training provided to the taxpayer's qualified
employees to maintain or improve a skill required for the taxpayer's
trade or business.
   (B) Education and training provided to the taxpayer's qualified
employees in order to comply with the express requirements imposed by
the taxpayer or by laws or regulations as a condition of the
qualified employee's retention of an established employment
relationship with the taxpayer, qualified employee status, or rate of
compensation.
   (2) "Qualified employee" means an employee of the taxpayer
employed within California during the taxable year.
   (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 year, and succeeding  seven  years if
necessary, until the credit is exhausted.
   (d) 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.
   (e) Credit under this section shall be allowed only for credits
claimed on a timely filed original return of the qualified taxpayer.
   (f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.
  SEC. 3.  Section 23623.2 is added to the Revenue and Taxation Code,
to read:
   23623.2.  (a) (1) For taxable years beginning on or after January
1, 2014, and before January 1, 2019, there shall be allowed as a
credit against the "tax," as defined in Section 23036, an amount
equal to 50 percent of the costs paid or incurred by the taxpayer
during the taxable year for the qualified education and training of a
qualified employee, subject to paragraph (2).
   (2) The credit allowed by this section shall not exceed two
thousand five hundred dollars ($2,500) per qualified employee per
taxable year.
   (b) For purposes of this section: 
   (1) "Qualified education and training" means education or training
provided to the taxpayer's qualified employees to maintain or
improve a skill required for the taxpayer's trade or business.
 
   (1) "Qualified education and training" means either of the
following:  
   (A) Education or training provided to the taxpayer's qualified
employees to maintain or improve a skill required for the taxpayer's
trade or business.  
   (B) Education and training provided to the taxpayer's qualified
employees in order to comply with the express requirements imposed by
the taxpayer or by laws or regulations as a condition of the
qualified employee's retention of an established employment
relationship with the taxpayer, qualified employee status, or rate of
compensation. 
   (2) "Qualified employee" means an employee of the taxpayer
employed within California during the taxable year.
   (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 year, and succeeding  seven  years if necessary,
until the credit is exhausted.
   (d) 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.
   (e) Credit under this section shall be allowed only for credits
claimed on a timely filed original return of the qualified taxpayer.
   (f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.