CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1211Introduced by Senator AndersonFebruary 15, 2018 An act to add and repeal Sections 17053.40 and 23640 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 1211, as introduced, Anderson. Income taxes: credits: apprenticeships.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment.This bill, for taxable years beginning on or after January 1, 2019, and before January 1, 2024, would allow a credit against the taxes imposed under those tax laws in an amount equal to 50% of wages paid in the taxable year to an apprentice or $2,500, whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program, as provided.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17053.40 is added to the Revenue and Taxation Code, to read:17053.40. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars ($2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.SEC. 2. Section 23640 is added to the Revenue and Taxation Code, to read:23640. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars (2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(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.
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 1211Introduced by Senator AndersonFebruary 15, 2018 An act to add and repeal Sections 17053.40 and 23640 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 1211, as introduced, Anderson. Income taxes: credits: apprenticeships.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment.This bill, for taxable years beginning on or after January 1, 2019, and before January 1, 2024, would allow a credit against the taxes imposed under those tax laws in an amount equal to 50% of wages paid in the taxable year to an apprentice or $2,500, whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program, as provided.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION
Senate Bill No. 1211
Introduced by Senator AndersonFebruary 15, 2018
Introduced by Senator Anderson
February 15, 2018
An act to add and repeal Sections 17053.40 and 23640 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 1211, as introduced, Anderson. Income taxes: credits: apprenticeships.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment.This bill, for taxable years beginning on or after January 1, 2019, and before January 1, 2024, would allow a credit against the taxes imposed under those tax laws in an amount equal to 50% of wages paid in the taxable year to an apprentice or $2,500, whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program, as provided.This bill would take effect immediately as a tax levy.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment.
This bill, for taxable years beginning on or after January 1, 2019, and before January 1, 2024, would allow a credit against the taxes imposed under those tax laws in an amount equal to 50% of wages paid in the taxable year to an apprentice or $2,500, whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program, as provided.
This bill would take effect immediately as a tax levy.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 17053.40 is added to the Revenue and Taxation Code, to read:17053.40. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars ($2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.SEC. 2. Section 23640 is added to the Revenue and Taxation Code, to read:23640. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars (2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(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.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 17053.40 is added to the Revenue and Taxation Code, to read:17053.40. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars ($2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
SECTION 1. Section 17053.40 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
17053.40. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars ($2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
17053.40. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars ($2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
17053.40. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars ($2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
17053.40. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars ($2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.
(b) For purposes of this section, all of the following shall apply:
(1) Apprentice means an individual who meets all of the following requirements:
(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.
(B) Is trained by the taxpayer through a qualified apprenticeship program.
(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:
(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.
(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.
(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.
(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.
(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 year, and succeeding four years, if necessary, until the credit is exhausted.
(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.
(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.
(e) Section 41 does not apply to the credit allowed by this section.
(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
SEC. 2. Section 23640 is added to the Revenue and Taxation Code, to read:23640. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars (2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
SEC. 2. Section 23640 is added to the Revenue and Taxation Code, to read:
### SEC. 2.
23640. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars (2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
23640. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars (2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
23640. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars (2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.(b) For purposes of this section, all of the following shall apply:(1) Apprentice means an individual who meets all of the following requirements:(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.(B) Is trained by the taxpayer through a qualified apprenticeship program.(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.(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 year, and succeeding four years, if necessary, until the credit is exhausted.(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.(e) Section 41 does not apply to the credit allowed by this section.(f) This section shall remain in effect only until December 1, 2024, and as of that date is repealed.
23640. (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, to a taxpayer in an amount equal to 50 percent of wages paid in the taxable year to an apprentice or two thousand five hundred dollars (2,500), whichever is lesser, in the first year of a two-year term of a qualified apprenticeship program.
(b) For purposes of this section, all of the following shall apply:
(1) Apprentice means an individual who meets all of the following requirements:
(A) Has entered into an apprenticeship agreement with the taxpayer as described in Section 3077 of the Labor Code.
(B) Is trained by the taxpayer through a qualified apprenticeship program.
(2) Qualified apprenticeship program means an apprenticeship program that meets all of the following requirements:
(A) Is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.
(B) Requires at least 4,000 hours, but not more than 8,000 hours, of apprenticeship training to occur during a two-year term.
(C) Satisfactory completion provides recognition of the apprentice as a qualified professional, technical, craft, or trade worker.
(3) Wages means any payments or remuneration made to an apprentice for services performed by the apprentice.
(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 year, and succeeding four years, if necessary, until the credit is exhausted.
(d) (1) In the case of any apprentice with respect to whom a credit is allowed under this section and whose apprenticeship is terminated by the taxpayer for reasons other than gross misconduct by the apprentice before the completion of the two-year term of the qualified apprenticeship training program, the amount of credit allowed shall be treated as tax owed for the taxable year during which the apprenticeship is terminated, except that the amount shall be prorated for the time the apprentice was trained through the qualified apprenticeship program during the two-year term.
(2) For purposes of paragraph (1), the commencement of the two-year term of the qualified apprenticeship training program shall be the first day of the apprentices training under that program.
(e) Section 41 does not apply to the credit allowed by this section.
(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.
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.
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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