Bill Text: CA AB340 | 2009-2010 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Income taxes: credits: hiring credit.
Sponsorship: Partisan Bill (Republican 1)
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 Title: Income taxes: credits: hiring credit.
Sponsorship: Partisan Bill (Republican 1)
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 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 Bank and
Corporation Tax Law authorize various credits against the taxes
imposed by those laws.
This bill would, under both laws, for taxable years beginning on
and after January 1, 2009 2010 , and
before January 1, 2013 2014 , authorize
a credit to a qualified employer 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, 2009 2010 , and before
January 1, 2013 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 a majority, or at least 50
percent, 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 dministrative
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 employees who are located in California .
(5) "Qualified job" means employment located at the qualified
employer's headquarters that is full-time employment, as defined by
law and regulation, and that pays wages that equal or exceed the
average wage in the county in which the headquarters are located.
(6)
(5) "Qualified wages" means the amount of wages subject
to Chapter 6 (commencing with Section 13000) of Part 6 of Division 6
of the Unemployment Insurance Code.
(7) (A) An employee of a corporation that is a member of a
controlled group of corporations shall be treated as employed by a
single taxpayer.
(B) For purposes of this paragraph, "controlled group of
corporations" has the same meaning as provided in Section 1563(a) of
the Internal Revenue Code, except that both of the following apply:
(i) "More than 50 percent" shall be substituted for "at least 80
percent" each place it appears in Section 1563(a)(1) of the Internal
Revenue Code.
(ii) Sections 1563(a)(4) and 1563(e)(3)(C) of the Internal Revenue
Code shall not apply.
(8)
(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,
2013 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, 2009 2010 , and before
January 1, 2013 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 average 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
a majority, or at least 50 percent, 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 dministrative
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 employees who are located in
California .
(5) "Qualified job" means employment located at the qualified
employer's headquarters that is full-time employment, as defined by
law and regulation, and that pays wages that equal or exceed the
average wage of the county in which the headquarters are located.
(6)
(5) "Qualified wages" means the amount of wages subject
to Chapter 6 (commencing with Section 13000) of Part 6 of Division 6
of the Unemployment Insurance Code.
(7) (A) An employee of a corporation that is a member of a
controlled group of corporations shall be treated as employed by a
single taxpayer.
(B) For purposes of this paragraph, "controlled group of
corporations" has the same meaning as provided in Section 1563(a) of
the Internal Revenue Code, except that both of the following apply:
(i) "More than 50 percent" shall be substituted for "at least 80
percent" each place it appears in Section 1563(a)(1) of the Internal
Revenue Code.
(ii) Sections 1563(a)(4) and 1563(e)(3)(C) of the Internal Revenue
Code shall not apply.
(8)
(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,
2013 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.
