California Assembly Bill AB1973 Amended / Bill

 BILL NUMBER: AB 1973AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 12, 2010 AMENDED IN ASSEMBLY APRIL 5, 2010 INTRODUCED BY Assembly Member Swanson FEBRUARY 17, 2010 An act to add  Sections 17053.76 and 23622.9 to   a   nd repeal Sections 17053.76 and 23622.9 of  the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 1973, as amended, Swanson. Income taxes: credits: qualified employees. The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws, including a hiring credit for qualified taxpayers who hire qualified employees, as defined, subject to specified criteria. This bill would, for taxable years beginning on or after January 1, 2010,  and before January 1, 2016,  authorize a hiring credit under those respective laws for taxpayers who hire qualified employees, as defined. 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 Reentry Employment Business Tax Credit Act. SEC. 2. Section 17053.76 is added to the Revenue and Taxation Code, to read: 17053.76. (a) (1) For each taxable year beginning on or after January 1,  2010   2011, and before January 1, 2016  , there shall be allowed  as  a credit against the "net tax," as defined in Section 17039, an amount as  described   specified  in paragraph (2), per each qualified employee employed by the taxpayer during the taxable year. (2) (A) Twenty percent of the gross  salary   wages  for each qualified employee employed by the taxpayer, not to exceed  $5,000   five thousand dollars ($5,000) , for the first year of employment  for each qualified employee  . (B) Twenty percent of the gross  salary   wages  for each qualified employee employed by the taxpayer, not to exceed  $5,000   five thousand dollars ($5,000) , for the second year of employment  for each qualified employee  . (b) The credit under subdivision (a) shall be allowed only with respect to the first year of employment if the qualified employee is employed by the taxpayer for 12 consecutive months from the date of employment and only with respect to the second year of employment if the qualified employee is employed by the taxpayer for 24 consecutive months from the date of employment. (c) For purposes of this section, "qualified employee" means an individual who is an ex-offender  who was convicted of a felony and is  employed by the taxpayer in a part-time or full-time position. "Qualified employee" shall not include an ex-offender who is required to register as a sex offender pursuant to Section 290 of the Penal Code, or the equivalent in another state or territory, under military law, or under federal law, or was convicted of a serious or violent felony  , as defined in subdivision (c) of Section 667.5 and subdivision (c) of Section 1192.7 of the Penal Code  . (d) Any deduction or credit otherwise allowed under this part for the  salaries   wages  paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit. (e) If 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 years if necessary, until the credit is exhausted  , not to exceed a maximum carryover period of eight years  .  (f) This section shall only apply to qualified employees hired in a taxable year beginning on or after January 1, 2011.   (g) This section shall remain in effect only until December 1, 2016, and as of that date is repealed.  SEC. 3. Section 23622.9 is added to the Revenue and Taxation Code, to read: 23622.9. (a) (1) For each taxable year beginning on or after January 1,  2010   2011, and before January 1, 2016  , there shall be allowed  as  a credit against the "tax," as defined in Section 23036, an amount as  described   specified  in paragraph (2), per each qualified employee employed by the taxpayer during the taxable year. (2) (A) Twenty percent of the gross  salary   wages for each qualified employee employed by the taxpayer, not to exceed  $5,000   five thousand dollars ($5,000)  , for the first year of employment  for each qualified employee  . (B) Twenty percent of the gross  salary   wages  for each qualified employee employed by the taxpayer, not to exceed  $5,000   five thousand dollars ($5,000)  , for the second year of employment  for each qualified employee  . (b) The credit under subdivision (a) shall be allowed only with respect to the first year of employment if the qualified employee is employed by the taxpayer for 12 consecutive months from the date of employment and only with respect to the second year of employment if the qualified employee is employed by the taxpayer for 24 consecutive months from the date of employment. (c) For purposes of this section, "qualified employee" means an individual who is an ex-offender  who was convicted of a felony and is  employed by the taxpayer in a part-time or full-time position. "Qualified employee" shall not include an ex-offender who is required to register as a sex offender pursuant to Section 290 of the Penal Code, or the equivalent in another state or territory, under military law, or under federal law, or was convicted of a serious or violent felony  , as defined in subdivision (c) of Section 667.5 and subdivision (c) of Section 1192.7 of the Penal Code  . (d) Any deduction or credit otherwise allowed under this part for the  salaries   wages  paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit. (e) If the credit allowed by this section exceeds the  "net tax,"   "tax,"  the excess may be carried over to reduce the  "net tax"   "tax"  in the following year, and succeeding years if necessary, until the credit is exhausted  , not to exceed a maximum carryover period of eight years  .  (f) This section shall only apply to qualified employees hired in a taxable year beginning on or after January 1, 2011.   (g) This section shall remain in effect only until December 1, 2016, 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.