Bill Text: CA AB340 | 2009-2010 | Regular Session | Amended
Bill Title: Income taxes: credits: hiring credit.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB340 Detail]
Download: California-2009-AB340-Amended.html
BILL NUMBER: AB 340 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 12, 2010
AMENDED IN ASSEMBLY JANUARY 4, 2010
AMENDED IN ASSEMBLY MAY 12, 2009
AMENDED IN ASSEMBLY MARCH 24, 2009
INTRODUCED BY Assembly Member Knight
FEBRUARY 18, 2009
An act to add and repeal Sections 17053.81 and 23623.2 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 340, as amended, Knight. Income taxes: credits: hiring credit.
The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws ,
including a credit for an increase in qualified employees, for a
qualified employer who employs 20 or fewer employees .
This bill would, under both laws, for taxable years beginning on
and after January 1, 2010, and before January 1, 2014,
authorize allow a credit to a qualified employer
, as defined, which, includes an employer of 30 or more
employees, of either $3,000 or $5,000, as specified, for each
qualified employee, as defined, employed by the qualified employer
during the taxable year.
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 17053.81 is added to the Revenue and Taxation
Code, to read:
17053.81. (a) (1) For each taxable year beginning on or after
January 1, 2010, and before January 1, 2014, there shall be allowed
as a credit against the "net tax," as defined in Section 17039, an
amount as specified in paragraph (2) per each qualified employee
employed during the taxable year by a qualified employer.
(2) The credit allowed by paragraph (1) shall be equal to three
thousand dollars ($3,000), or if the wage of the qualified employee
for which a tax credit authorized pursuant to this section is claimed
is 200 percent or more than the average wage in the county in which
the qualified employee completes at least 50 percent of his or her
work, five thousand dollars ($5,000).
(b) For purposes of this section:
(1) "Average wage" means the wage average of each county, as
determined by the Employment Development Department.
(2) "Headquarters" means the principal administrative office in
California of a qualified employer that employs 30 or more qualified
employees at that office.
(3) "Qualified employee" means an employee who was paid qualified
wages by the qualified employer for services rendered for not less
than an average of 35 hours per week and not less than 1700 hours per
annum.
(4) "Qualified employer" means a taxpayer that is a person engaged
in a trade or business within California that, on or after January
1, 2010, has either established a headquarters within California or
relocated a headquarters to California, and, as of the last day of
the preceding taxable year, employed a total of 30 or more
qualified employees who are located in California.
(5) "Qualified wages" means the amount of wages subject to
Chapter 6 (commencing with Section 13000) of Part 6 of
Division 6 Division 6 (commencing with Section 13000)
of the Unemployment Insurance Code.
(6) The Franchise Tax Board may prescribe appropriate regulations
to carry out the purposes of this section, including any regulations
necessary to prevent the avoidance of the purposes of this section
through split-ups, shell corporations, partnerships, tiered ownership
structures, or otherwise.
(c) The credit authorized by this section shall be allowable to a
qualified employer for the first taxable year in which the qualified
employer's headquarters are established within, or relocated to,
California, and the succeeding taxable year.
(d) In the case where the credit allowed under this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and the succeeding 10 years if
necessary, until the credit has been exhausted.
(e) The credit allowed by this section shall be in lieu of any
other credit or deduction that the taxpayer may otherwise claim
pursuant to this part with respect to qualified wages.
(f) This section shall remain in effect only until December 1,
2014, and as of that date is repealed.
SEC. 2. Section 23623.2 is added to the Revenue and Taxation Code,
to read:
23623.2. (a) (1) For each taxable year beginning on or after
January 1, 2010, and before January 1, 2014, there shall be allowed
as a credit against the "tax," as defined in Section 23036, an amount
as specified in paragraph (2) per each qualified employee employed
during the taxable year by a qualified employer.
(2) The credit allowed by paragraph (1) shall be equal to three
thousand dollars ($3,000) or, if the wage of the qualified employee
for which a tax credit authorized pursuant to this section is claimed
is 200 percent or more than the average wage in the county in which
the qualified employee completes at least 50 percent of his or her
work, five thousand dollars ($5,000).
(b) For purposes of this section:
(1) "Average wage" means the wage average of each county, as
determined by the Employment Development Department.
(2) "Headquarters" means the principal administrative office in
California of a qualified employer that employs 30 or more qualified
employees at that office.
(3) "Qualified employee" means an employee who was paid qualified
wages by the qualified employer for services rendered for not less
than an average of 35 hours per week and not less than 1700 hours per
annum.
(4) "Qualified employer" means a taxpayer that is a person engaged
in a trade or business within California that, on or after January
1, 2010, has either established its headquarters within California or
relocated its headquarters to California, and, as of the last day of
the preceding taxable year, employed a total of 30 or more
qualified employees who are located in California.
(5) "Qualified wages" means the amount of wages subject to
Chapter 6 (commencing with Section 13000) of Part 6 of
Division 6 Division 6 (commencing with Section 13000)
of the Unemployment Insurance Code.
(6) The Franchise Tax Board may prescribe appropriate regulations
to carry out the purposes of this section, including any regulations
necessary to prevent the avoidance of the purposes of this section
through split-ups, shell corporations, partnerships, tiered ownership
structures, or otherwise.
(c) The credit authorized by this section shall be allowable to a
qualified employer for the first taxable year in which the qualified
employer's headquarters are established within, or relocated to,
California, and the succeeding taxable year.
(d) In the case where the credit allowed under this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and the succeeding 10 years if necessary,
until the credit has been exhausted.
(e) The credit allowed by this section shall be in lieu of any
other credit or deduction that the taxpayer may otherwise claim
pursuant to this part with respect to qualified wages.
(f) This section shall remain in effect only until December 1,
2014, and as of that date is repealed.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
