Income taxes: credit: employees with disabilities.
The enactment of AB 3127 would amend relevant sections of the Revenue and Taxation Code, allowing for specified tax credits aimed at supporting employers who hire staff with disabilities. By defining qualified employees as those eligible to receive a special minimum wage, it facilitates the integration of disabled individuals into the workforce while offering financial relief to employers. Furthermore, it mandates that the Franchise Tax Board compile a report on employment trends pertaining to individuals with developmental disabilities and tax credits, which will help assess the bill's effectiveness in achieving its goals.
Assembly Bill 3127, introduced by Assembly Member Acosta, seeks to provide tax credits to employers who hire individuals with disabilities and pay them at least the minimum wage. The bill allows qualified employers to claim a credit against personal and corporation taxes for the difference between the minimum wage and the special minimum wage permissible for disabled employees, effectively incentivizing the employment of individuals who might otherwise struggle to find work. The credits apply to taxable years beginning on January 1, 2019, through December 31, 2023, with the aim of promoting a more inclusive workforce in California.
While proponents argue that the bill shall enhance employment opportunities for individuals with disabilities and reduce the financial burdens on employers, there may be concerns regarding its potential limitations. Critics could argue that the assistance is temporary and may not lead to long-lasting employment practices that support disabled individuals. Additionally, questions may arise concerning the efficiency of tax credits as an incentive and whether they truly produce the desired social outcomes without further measures to encourage sustained employment.