CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2041Introduced by Assembly Member Megan DahleFebruary 03, 2020 An act to add and repeal Sections 17053.82 and 23682 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2041, as introduced, Megan Dahle. Income taxes: credits: microbusinesses: first-time employees.The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, in an amount that is equal to either 30% of the amount paid or incurred by a microbusiness, as defined, during the taxable year for qualified wages of up to 3 qualified employees, not to exceed $5,000 per qualified employee. The bill would define qualified employee to mean a full or part-time employee who is between 18 to 25 years of age and has not previously received wages from any employer, as specified. The bill would also include additional information required for any bill authorizing a new tax expenditure.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 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the net tax, as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section:(1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 2. Section 23682 is added to the Revenue and Taxation Code, to read:23682. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the tax, as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section: (1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, hereafter the credits, is to expand employment opportunities for individuals entering the workforce and alleviate the cost burden on microbusinesses in training individuals entering the workforce for the first time by creating hiring incentives for those individuals.(2) The performance indicator for the Legislature to use when measuring whether the credits meet the goal, purpose, or objective specified in paragraph (1) is how many taxpayers are allowed the credits.(b) Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall annually publish anonymized data on the credits through calendar year 2026.SEC. 4. 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 20192020 REGULAR SESSION Assembly Bill No. 2041Introduced by Assembly Member Megan DahleFebruary 03, 2020 An act to add and repeal Sections 17053.82 and 23682 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2041, as introduced, Megan Dahle. Income taxes: credits: microbusinesses: first-time employees.The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, in an amount that is equal to either 30% of the amount paid or incurred by a microbusiness, as defined, during the taxable year for qualified wages of up to 3 qualified employees, not to exceed $5,000 per qualified employee. The bill would define qualified employee to mean a full or part-time employee who is between 18 to 25 years of age and has not previously received wages from any employer, as specified. The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill
No. 2041
Introduced by Assembly Member Megan DahleFebruary 03, 2020
Introduced by Assembly Member Megan Dahle
February 03, 2020
An act to add and repeal Sections 17053.82 and 23682 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2041, as introduced, Megan Dahle. Income taxes: credits: microbusinesses: first-time employees.
The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, in an amount that is equal to either 30% of the amount paid or incurred by a microbusiness, as defined, during the taxable year for qualified wages of up to 3 qualified employees, not to exceed $5,000 per qualified employee. The bill would define qualified employee to mean a full or part-time employee who is between 18 to 25 years of age and has not previously received wages from any employer, as specified. The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.
The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, in an amount that is equal to either 30% of the amount paid or incurred by a microbusiness, as defined, during the taxable year for qualified wages of up to 3 qualified employees, not to exceed $5,000 per qualified employee. The bill would define qualified employee to mean a full or part-time employee who is between 18 to 25 years of age and has not previously received wages from any employer, as specified. The bill would also include additional information required for any bill authorizing a new tax expenditure.
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 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the net tax, as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section:(1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 2. Section 23682 is added to the Revenue and Taxation Code, to read:23682. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the tax, as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section: (1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, hereafter the credits, is to expand employment opportunities for individuals entering the workforce and alleviate the cost burden on microbusinesses in training individuals entering the workforce for the first time by creating hiring incentives for those individuals.(2) The performance indicator for the Legislature to use when measuring whether the credits meet the goal, purpose, or objective specified in paragraph (1) is how many taxpayers are allowed the credits.(b) Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall annually publish anonymized data on the credits through calendar year 2026.SEC. 4. 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 17053.82 is added to the Revenue and Taxation Code, to read:17053.82. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the net tax, as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section:(1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
SECTION 1. Section 17053.82 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
17053.82. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the net tax, as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section:(1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
17053.82. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the net tax, as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section:(1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
17053.82. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the net tax, as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section:(1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
17053.82. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the net tax, as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.
(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.
(b) For purposes of this section:
(1) Microbusiness means a business with 10 or fewer employees.
(2) Qualified employee means a full or part-time employee that meets both of the following criteria:
(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.
(B) Is between 18 to 25 years of age.
(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.
(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.
(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.
(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 years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
SEC. 2. Section 23682 is added to the Revenue and Taxation Code, to read:23682. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the tax, as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section: (1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
SEC. 2. Section 23682 is added to the Revenue and Taxation Code, to read:
### SEC. 2.
23682. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the tax, as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section: (1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
23682. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the tax, as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section: (1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
23682. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the tax, as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.(b) For purposes of this section: (1) Microbusiness means a business with 10 or fewer employees.(2) Qualified employee means a full or part-time employee that meets both of the following criteria:(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.(B) Is between 18 to 25 years of age.(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.(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 years if necessary, until the credit is exhausted.(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
23682. (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the tax, as defined in Section 23036, an amount equal to the amount specified in paragraph (2) for qualified wages paid or incurred by the qualified taxpayer during the taxable year to a qualified employee.
(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 30 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified wages of up to three qualified employees, not to exceed five thousand dollars ($5,000) per qualified employee.
(b) For purposes of this section:
(1) Microbusiness means a business with 10 or fewer employees.
(2) Qualified employee means a full or part-time employee that meets both of the following criteria:
(A) Has not previously received wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code, or the equivalent in another state, from any employer.
(B) Is between 18 to 25 years of age.
(3) Qualified taxpayer means a microbusiness that pays or incurs qualified wages.
(4) Qualified wages means wages paid or incurred by the qualified taxpayer during the taxable year to qualified employees.
(5) Wages means wages subject to withholding under Division 6 (commencing with Section 13000) of the Unemployment Insurance Code.
(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 years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.
SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, hereafter the credits, is to expand employment opportunities for individuals entering the workforce and alleviate the cost burden on microbusinesses in training individuals entering the workforce for the first time by creating hiring incentives for those individuals.(2) The performance indicator for the Legislature to use when measuring whether the credits meet the goal, purpose, or objective specified in paragraph (1) is how many taxpayers are allowed the credits.(b) Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall annually publish anonymized data on the credits through calendar year 2026.
SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:(1) The goal, purpose, or objective of Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, hereafter the credits, is to expand employment opportunities for individuals entering the workforce and alleviate the cost burden on microbusinesses in training individuals entering the workforce for the first time by creating hiring incentives for those individuals.(2) The performance indicator for the Legislature to use when measuring whether the credits meet the goal, purpose, or objective specified in paragraph (1) is how many taxpayers are allowed the credits.(b) Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall annually publish anonymized data on the credits through calendar year 2026.
SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:
### SEC. 3.
(1) The goal, purpose, or objective of Sections 17053.82 and 23682 of the Revenue and Taxation Code, as added by this act, hereafter the credits, is to expand employment opportunities for individuals entering the workforce and alleviate the cost burden on microbusinesses in training individuals entering the workforce for the first time by creating hiring incentives for those individuals.
(2) The performance indicator for the Legislature to use when measuring whether the credits meet the goal, purpose, or objective specified in paragraph (1) is how many taxpayers are allowed the credits.
(b) Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall annually publish anonymized data on the credits through calendar year 2026.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 4.