Income taxes: credits: student intern.
The bill is set to apply to taxable years beginning on or after January 1, 2019, and before January 1, 2024. It stipulates that small businesses can carry over any excess tax credit to offset their tax liabilities in subsequent years, potentially benefiting multiple fiscal years. The bill positions itself as a method to engage students in practical job environments while supporting small enterprise growth within California. This alleviation of tax liability is expected to stimulate job creation and expand opportunities for young people.
SB1337, introduced by Senator Vidak, is a legislative bill aimed at providing tax relief for small businesses that hire student interns. The bill allows small business qualified taxpayers to receive a tax credit equal to 50% of the first $2,500 in qualified wages paid to student interns for their first 90 days of employment. This measure is designed to incentivize small businesses to employ students, thereby facilitating their transition into the workforce and reducing unemployment among young adults.
Overall sentiment towards SB1337 appears to be positive, particularly among small business advocates who perceive the bill as a meaningful opportunity to reduce operational costs associated with hiring interns. By promoting the hiring of students, the bill aligns with broader educational and economic goals aimed at facilitating a skilled workforce. However, while proponents emphasize the bill's benefits for economic development and workforce readiness, critics may point to the need for comprehensive support that includes more than just tax incentives to address youth unemployment.
One point of contention regarding SB1337 could involve debates around the adequacy of support provided for industries that rely heavily on internships or student work programs. While the tax credit is a significant step, some stakeholders might argue that it does not fully address potential barriers such as the availability of internships, wage disparity, or the necessity of additional resources for student training. Additionally, the timeline for the bill will end in December 2024, leading to questions about the long-term implications of such incentives for the future workforce needs.