Bill Text: CA SB1337 | 2017-2018 | Regular Session | Amended


Bill Title: Income taxes: credits: student intern.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2018-05-15 - Set for hearing May 22. [SB1337 Detail]

Download: California-2017-SB1337-Amended.html

Amended  IN  Senate  May 10, 2018
Amended  IN  Senate  March 22, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 1337


Introduced by Senator Vidak

February 16, 2018


An act to add and repeal Sections 17053.8 and 23628 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1337, as amended, Vidak. Income taxes: credits: student intern.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, in an amount equal to 50% of the amount first $2,500 of qualified wages paid or incurred by a small business qualified taxpayer during the taxable year for wages paid to a student intern, as defined, for the first 90 calendar days of employment.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17053.8 is added to the Revenue and Taxation Code, to read:

17053.8.
 (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount first two thousand five hundred dollars ($2,500) of qualified wages paid or incurred by a small business qualified taxpayer during the taxable year for wages paid to a student intern for the first 90 calendar days of employment.
(b) For purposes of this section:
(1) “Small business” has the same meaning “Qualified taxpayer” means a small business, as defined in paragraph (14) of subdivision (b) of Section 23626.
(2) “Qualified wages” means those wages that are subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.

(2)

(3) “Student intern” means an individual who has not been previously employed by the qualified taxpayer in any taxable year and who is either of the following:
(A) Enrolled in high school.
(B) Enrolled at an accredited community college, or at a public or private college or university, and taking six or more credits during the current semester or quarter in which he or she is employed by the qualified taxpayer or the previous semester or quarter. quarter prior to employment.
(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 credit shall be taken in lieu of any other credit or deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the qualified wages of a student intern.

(d)

(e) It is the intent of the Legislature to comply with Section 41.

(e)

(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.

SEC. 2.

 Section 23628 is added to the Revenue and Taxation Code, to read:

23628.
 (a) For each taxable year beginning on or after January 1, 2019, and before January 1, 2024, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 50 percent of the amount first two thousand five hundred dollars ($2,500) of qualified wages paid or incurred by a small business qualified taxpayer during the taxable year for wages paid to a student intern for the first 90 calendar days of employment.
(b) For purposes of this section:
(1) “Small business” has the same meaning “Qualified taxpayer” means a small business, as defined in paragraph (14) of subdivision (b) of Section 23626.
(2) “Qualified wages” means those wages that are subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.

(2)

(3) “Student intern” means an individual who has not been previously employed by the qualified taxpayer in any taxable year and who is either of the following:
(A) Enrolled in high school.
(B) Enrolled at an accredited community college, or at a public or private college or university, and taking six or more credits during the current semester or quarter in which he or she is employed by the qualified taxpayer or the previous semester or quarter. quarter prior to employment.
(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 credit shall be taken in lieu of any other credit or deduction that the qualified taxpayer may otherwise claim pursuant to this part with respect to the qualified wages of a student intern.

(d)

(e) It is the intent of the Legislature to comply with Section 41.

(e)

(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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