Amended IN Assembly May 03, 2022 Amended IN Assembly March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1920Introduced by Assembly Member FongFebruary 09, 2022An act to add and repeal Sections 17052.9 17052.9.1 and 23644 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 1920, as amended, Fong. Income taxes: credits: COVID-19 supplemental paid sick leave.Existing(1) Existing law, the Healthy Workplaces, Healthy Families Act of 2014, entitles an employee who works in California for the same employer for 30 or more days within a year from the commencement of employment to paid sick days. Existing law, until September 30, 2022, provides for COVID-19 supplemental paid sick leave for covered employees, in-home supportive service providers, and waiver personal care service providers who are unable to work due to certain reasons related to COVID-19, and requires specified employers to compensate the covered employees and providers at specified rates, as provided. The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that specified payments required to be made to taxpayers, including refunds, are to be paid from that account.This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2023, would allow a credit against the taxes imposed by those laws to specified employers for the amount paid by the employer as COVID-19 supplemental paid sick leave benefits. The bill would require amounts of this credit in excess of the tax liability of a nonprofit organization that is authorized to claim the credit to be paid to the nonprofit organization from the Tax Relief and Refund Account. The bill would require the refunded amount to be used only by the nonprofit organization to make its employer contributions to the Unemployment Fund, as specified.By authorizing new refund payments to be paid from the continuously appropriated Tax Relief and Refund Account, this bill would make an appropriation.(2) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would 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: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1.Section 17052.9 is added to the Revenue and Taxation Code, to read:17052.9.SECTION 1. Section 17052.9.1 is added to the Revenue and Taxation Code, to read:17052.9.1. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business. (d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section. (e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.SEC. 2. Section 23644 is added to the Revenue and Taxation Code, to read:23644. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the tax, as defined in Section 23036, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In (2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17052.9 and 23644 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following: (a) The specific goal, purpose, and objective that the credits will achieve is to provide assistance to small and midsize businesses and to nonprofit organizations operating in the state that have been harmed economically by the COVID-19 pandemic and to assist in offsetting COVID-19 supplemental paid sick leave benefits.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses and nonprofit organizations that made COVID-19 supplemental paid sick leave payments to employees and subsequently used the credits, reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic.(c) (1) The Legislative Analysts Office shall collaborate with the Franchise Tax Board and review other publicly available data to analyze the credits claimed by industries, regions, and businesses harmed by the COVID-19 pandemic, and shall report its findings, on or before January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(2) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office that the Legislative Analysts Office deems is necessary for its analysis under paragraph (1).(3) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code. 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.
Amended IN Assembly May 03, 2022 Amended IN Assembly March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1920Introduced by Assembly Member FongFebruary 09, 2022An act to add and repeal Sections 17052.9 17052.9.1 and 23644 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 1920, as amended, Fong. Income taxes: credits: COVID-19 supplemental paid sick leave.Existing(1) Existing law, the Healthy Workplaces, Healthy Families Act of 2014, entitles an employee who works in California for the same employer for 30 or more days within a year from the commencement of employment to paid sick days. Existing law, until September 30, 2022, provides for COVID-19 supplemental paid sick leave for covered employees, in-home supportive service providers, and waiver personal care service providers who are unable to work due to certain reasons related to COVID-19, and requires specified employers to compensate the covered employees and providers at specified rates, as provided. The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that specified payments required to be made to taxpayers, including refunds, are to be paid from that account.This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2023, would allow a credit against the taxes imposed by those laws to specified employers for the amount paid by the employer as COVID-19 supplemental paid sick leave benefits. The bill would require amounts of this credit in excess of the tax liability of a nonprofit organization that is authorized to claim the credit to be paid to the nonprofit organization from the Tax Relief and Refund Account. The bill would require the refunded amount to be used only by the nonprofit organization to make its employer contributions to the Unemployment Fund, as specified.By authorizing new refund payments to be paid from the continuously appropriated Tax Relief and Refund Account, this bill would make an appropriation.(2) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would 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: MAJORITY2/3 Appropriation: NOYES Fiscal Committee: YES Local Program: NO
Amended IN Assembly May 03, 2022 Amended IN Assembly March 24, 2022
Amended IN Assembly May 03, 2022
Amended IN Assembly March 24, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 1920
Introduced by Assembly Member FongFebruary 09, 2022
Introduced by Assembly Member Fong
February 09, 2022
An act to add and repeal Sections 17052.9 17052.9.1 and 23644 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1920, as amended, Fong. Income taxes: credits: COVID-19 supplemental paid sick leave.
Existing(1) Existing law, the Healthy Workplaces, Healthy Families Act of 2014, entitles an employee who works in California for the same employer for 30 or more days within a year from the commencement of employment to paid sick days. Existing law, until September 30, 2022, provides for COVID-19 supplemental paid sick leave for covered employees, in-home supportive service providers, and waiver personal care service providers who are unable to work due to certain reasons related to COVID-19, and requires specified employers to compensate the covered employees and providers at specified rates, as provided. The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that specified payments required to be made to taxpayers, including refunds, are to be paid from that account.This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2023, would allow a credit against the taxes imposed by those laws to specified employers for the amount paid by the employer as COVID-19 supplemental paid sick leave benefits. The bill would require amounts of this credit in excess of the tax liability of a nonprofit organization that is authorized to claim the credit to be paid to the nonprofit organization from the Tax Relief and Refund Account. The bill would require the refunded amount to be used only by the nonprofit organization to make its employer contributions to the Unemployment Fund, as specified.By authorizing new refund payments to be paid from the continuously appropriated Tax Relief and Refund Account, this bill would make an appropriation.(2) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
Existing
(1) Existing law, the Healthy Workplaces, Healthy Families Act of 2014, entitles an employee who works in California for the same employer for 30 or more days within a year from the commencement of employment to paid sick days. Existing law, until September 30, 2022, provides for COVID-19 supplemental paid sick leave for covered employees, in-home supportive service providers, and waiver personal care service providers who are unable to work due to certain reasons related to COVID-19, and requires specified employers to compensate the covered employees and providers at specified rates, as provided.
The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that specified payments required to be made to taxpayers, including refunds, are to be paid from that account.
This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2023, would allow a credit against the taxes imposed by those laws to specified employers for the amount paid by the employer as COVID-19 supplemental paid sick leave benefits. The bill would require amounts of this credit in excess of the tax liability of a nonprofit organization that is authorized to claim the credit to be paid to the nonprofit organization from the Tax Relief and Refund Account. The bill would require the refunded amount to be used only by the nonprofit organization to make its employer contributions to the Unemployment Fund, as specified.
By authorizing new refund payments to be paid from the continuously appropriated Tax Relief and Refund Account, this bill would make an appropriation.
(2) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would 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 17052.9 is added to the Revenue and Taxation Code, to read:17052.9.SECTION 1. Section 17052.9.1 is added to the Revenue and Taxation Code, to read:17052.9.1. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business. (d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section. (e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.SEC. 2. Section 23644 is added to the Revenue and Taxation Code, to read:23644. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the tax, as defined in Section 23036, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In (2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17052.9 and 23644 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following: (a) The specific goal, purpose, and objective that the credits will achieve is to provide assistance to small and midsize businesses and to nonprofit organizations operating in the state that have been harmed economically by the COVID-19 pandemic and to assist in offsetting COVID-19 supplemental paid sick leave benefits.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses and nonprofit organizations that made COVID-19 supplemental paid sick leave payments to employees and subsequently used the credits, reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic.(c) (1) The Legislative Analysts Office shall collaborate with the Franchise Tax Board and review other publicly available data to analyze the credits claimed by industries, regions, and businesses harmed by the COVID-19 pandemic, and shall report its findings, on or before January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(2) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office that the Legislative Analysts Office deems is necessary for its analysis under paragraph (1).(3) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code. 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 17052.9.1 is added to the Revenue and Taxation Code, to read:17052.9.1. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business. (d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section. (e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SECTION 1. Section 17052.9.1 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
17052.9.1. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business. (d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section. (e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
17052.9.1. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business. (d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section. (e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
17052.9.1. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business. (d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section. (e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
17052.9.1. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, in an amount equal to the qualified amount.
(b) For purposes of this section, the following definitions shall apply:
(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.
(2) Provider means a provider as defined in Section 248.7 of the Labor Code.
(3) Public employer means:
(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.
(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.
(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.
(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:
(i) Employs less than 500 employees on average at any time during the taxable year.
(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.
(B) Qualified taxpayer shall not include a public employer.
(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.
(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.
(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.
(e)In
(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted.
(f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SEC. 2. Section 23644 is added to the Revenue and Taxation Code, to read:23644. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the tax, as defined in Section 23036, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In (2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SEC. 2. Section 23644 is added to the Revenue and Taxation Code, to read:
### SEC. 2.
23644. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the tax, as defined in Section 23036, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In (2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
23644. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the tax, as defined in Section 23036, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In (2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
23644. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the tax, as defined in Section 23036, in an amount equal to the qualified amount.(b) For purposes of this section, the following definitions shall apply:(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.(2) Provider means a provider as defined in Section 248.7 of the Labor Code.(3) Public employer means:(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:(i) Employs less than 500 employees on average at any time during the taxable year.(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.(B) Qualified taxpayer shall not include a public employer.(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.(e)In (2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
23644. (a) For taxable years beginning on or after January 1, 2022, and before January 1, 2023, there shall be allowed to a qualified taxpayer a credit against the tax, as defined in Section 23036, in an amount equal to the qualified amount.
(b) For purposes of this section, the following definitions shall apply:
(1) Covered employee means a covered employee as defined in Section 248.6 of the Labor Code.
(2) Provider means a provider as defined in Section 248.7 of the Labor Code.
(3) Public employer means:
(A) The state and every state entity, including, but not limited to, the Legislature, the judicial branch, the University of California, and the California State University.
(B) A political subdivision of the state, or agency or instrumentality of the state or subdivision of the state, including, but not limited to, a city, county, city and county, charter city, charter county, school district, community college district, joint powers authority, joint powers agency, and any public agency, authority, board, commission, or district.
(4) Qualified amount means an amount equal to the amount paid by the qualified taxpayer as COVID-19 supplemental paid sick leave benefits pursuant to Sections 248.6 and 248.7 of the Labor Code, not to exceed the compensation limitations per covered employee, as specified in paragraph (3) of subdivision (b) of Section 248.6 of the Labor Code, or per provider, as specified in paragraph (3) of subdivision (b) of Section 248.7 of the Labor Code, as applicable.
(5) (A) Qualified taxpayer means an employer that paid COVID-19 supplemental paid sick leave benefits, pursuant to Section 248.6 or 248.7 of the Labor Code, to an employee or provider, as applicable, and meets at least one of the following requirements:
(i) Employs less than 500 employees on average at any time during the taxable year.
(ii) Is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code.
(B) Qualified taxpayer shall not include a public employer.
(c) In the case where a credit under this section is allowed to a nonprofit organization, the credit shall be applied against the tax imposed upon the nonprofit organizations unrelated business income, regardless of whether the covered employee or provider for whom the qualified amount was paid performed work or activities related to the generation of the unrelated business income or for the unrelated business.
(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.
(e) (1) For a qualified taxpayer that is a nonprofit organization pursuant to Section 501(c)(3) of the Internal Revenue Code, if the amount allowable as a credit under this section exceeds the tax liability computed under this part for the taxable year, the excess shall be credited against other amounts due, if any, and the balance, if any, shall be paid from the Tax Relief and Refund Account and refunded to the qualified taxpayer. The refunded amount shall only be used by the qualified taxpayer to make its employer contributions to the Unemployment Fund, pursuant to Article 3 (commencing with Section 976) of Chapter 4 of Part 1 of Division 1 of the Unemployment Insurance Code.
(e)In
(2) For all other qualified taxpayers that are not subject to paragraph (1), 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 four years, if necessary, until the credit is exhausted.
(f) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17052.9 and 23644 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following: (a) The specific goal, purpose, and objective that the credits will achieve is to provide assistance to small and midsize businesses and to nonprofit organizations operating in the state that have been harmed economically by the COVID-19 pandemic and to assist in offsetting COVID-19 supplemental paid sick leave benefits.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses and nonprofit organizations that made COVID-19 supplemental paid sick leave payments to employees and subsequently used the credits, reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic.(c) (1) The Legislative Analysts Office shall collaborate with the Franchise Tax Board and review other publicly available data to analyze the credits claimed by industries, regions, and businesses harmed by the COVID-19 pandemic, and shall report its findings, on or before January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(2) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office that the Legislative Analysts Office deems is necessary for its analysis under paragraph (1).(3) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17052.9 and 23644 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following: (a) The specific goal, purpose, and objective that the credits will achieve is to provide assistance to small and midsize businesses and to nonprofit organizations operating in the state that have been harmed economically by the COVID-19 pandemic and to assist in offsetting COVID-19 supplemental paid sick leave benefits.(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses and nonprofit organizations that made COVID-19 supplemental paid sick leave payments to employees and subsequently used the credits, reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic.(c) (1) The Legislative Analysts Office shall collaborate with the Franchise Tax Board and review other publicly available data to analyze the credits claimed by industries, regions, and businesses harmed by the COVID-19 pandemic, and shall report its findings, on or before January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(2) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office that the Legislative Analysts Office deems is necessary for its analysis under paragraph (1).(3) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17052.9 and 23644 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:
### SEC. 3.
(a) The specific goal, purpose, and objective that the credits will achieve is to provide assistance to small and midsize businesses and to nonprofit organizations operating in the state that have been harmed economically by the COVID-19 pandemic and to assist in offsetting COVID-19 supplemental paid sick leave benefits.
(b) Detailed performance indicators for the Legislature to use in determining whether the credits meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses and nonprofit organizations that made COVID-19 supplemental paid sick leave payments to employees and subsequently used the credits, reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic.
(c) (1) The Legislative Analysts Office shall collaborate with the Franchise Tax Board and review other publicly available data to analyze the credits claimed by industries, regions, and businesses harmed by the COVID-19 pandemic, and shall report its findings, on or before January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.
(2) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office that the Legislative Analysts Office deems is necessary for its analysis under paragraph (1).
(3) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.