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California Assembly Bill AB2803

California 2021-2022 Regular Session

California Assembly Bill AB2803 Compare Versions

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1-Amended IN Assembly April 26, 2022 Amended IN Assembly March 31, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2803Introduced by Assembly Member ValladaresFebruary 18, 2022An act to add and repeal Sections 17053.84 and 23684 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 2803, as amended, Valladares. Income taxation: credits: dependent care.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care or backup care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% 25% of the contributions, or 50% 30% for a small employer taxpayer, as provided, not to exceed $500,000 $250,000 per taxable year. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill also would include additional information required for any bill authorizing a new tax credit. 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 17053.84 is added to the Revenue and Taxation Code, to read:17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified care backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.(2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 2. Section 23684 is added to the Revenue and Taxation Code, to read:23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee. (2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 3. For the purpose of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.84 and 23684 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To recognize that working families require child and dependent care support to fully participate in the workforce.(2) To provide working families with additional dependent care support to address affordability and access issues and to help fill dependent care gaps.(3) To incentivize more employers to offer their employees dependent care support services.(b) To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall prepare a written report on all of the following:(1) The number and common characteristics of taxpayers claiming the credit.(2) The number and common characteristics of small employer taxpayers claiming the credit.(3) The average credit amount on taxpayer tax returns claiming the credit.(4) The average credit amount on small employer taxpayer tax returns claiming the credit.(5) The number of taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(6) The number of small employer taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(c) The Franchise Tax Board shall provide the written report prepared pursuant to subdivision (b), on or before ____, and in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Government and Finance, and the Assembly Committee on Revenue and Taxation. 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.
1+Amended IN Assembly March 31, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2803Introduced by Assembly Member Calderon ValladaresFebruary 18, 2022 An act to amend Section 1771.5 of the Labor Code, relating to public works. An act to add and repeal Sections 17053.84 and 23684 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 2803, as amended, Calderon Valladares. Public works: labor compliance. Income taxation: credits: dependent care.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% of the contributions, or 50% for a small employer taxpayer, as provided, not to exceed $500,000 per taxable year. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill also would include additional information required for any bill authorizing a new tax credit. This bill would take effect immediately as a tax levy.Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages, the regulation of working hours, and the securing of workers compensation for public works projects. Existing law generally requires that not less than the general prevailing rate of per diem wages be paid to workers employed on public works projects, and imposes misdemeanor penalties for a willful violation of this requirement.Existing law authorizes the awarding body for a public works project to not require the payment of the general prevailing rate of per diem wages on public works projects of specified sizes and types of work, including construction projects of $25,000 or less, if the awarding body elects to initiate and enforce a labor compliance program containing specified requirements for every public works project under its authority, as specified.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17053.84 is added to the Revenue and Taxation Code, to read:17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 2. Section 23684 is added to the Revenue and Taxation Code, to read:23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 3. For the purpose of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.84 and 23684 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To recognize that working families require child and dependent care support to fully participate in the workforce.(2) To provide working families with additional dependent care support to address affordability and access issues and to help fill dependent care gaps.(3) To incentivize more employers to offer their employees dependent care support services.(b) To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall prepare a written report on all of the following:(1) The number and common characteristics of taxpayers claiming the credit.(2) The number and common characteristics of small employer taxpayers claiming the credit.(3) The average credit amount on taxpayer tax returns claiming the credit.(4) The average credit amount on small employer taxpayer tax returns claiming the credit.(5) The number of taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(6) The number of small employer taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(c) The Franchise Tax Board shall provide the written report prepared pursuant to subdivision (b), on or before ____, and in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Government and Finance, and the Assembly Committee on Revenue and Taxation. 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.SECTION 1.Section 1771.5 of the Labor Code is amended to read:1771.5.(a)Notwithstanding Section 1771, an awarding body may choose not to require the payment of the general prevailing rate of per diem wages or the general prevailing rate of per diem wages for holiday and overtime work for any public works project of twenty-five thousand dollars ($25,000) or less when the project is for construction work, or for any public works project of fifteen thousand dollars ($15,000) or less when the project is for alteration, demolition, repair, or maintenance work, if the awarding body has elected to initiate, and has been approved by the Director of Industrial Relations to enforce, a labor compliance program pursuant to subdivision (b) for every public works project under the authority of the awarding body.(b)For purposes of this section, a labor compliance program shall include, but not be limited to, the following requirements:(1)All bid invitations and public works contracts shall contain appropriate language concerning the requirements of this chapter.(2)A prejob conference shall be conducted with the contractor and subcontractors to discuss federal and state labor law requirements applicable to the contract.(3)Project contractors and subcontractors shall maintain and furnish, at a designated time, a certified copy of each weekly payroll containing a statement of compliance signed under penalty of perjury.(4)The awarding body shall review, and, if appropriate, audit payroll records to verify compliance with this chapter.(5)The awarding body shall withhold contract payments when payroll records are delinquent or inadequate.(6)The awarding body shall withhold contract payments equal to the amount of underpayment and applicable penalties when, after investigation, it is established that underpayment has occurred.(7)The awarding body shall comply with any other prevailing wage monitoring and enforcement activities that are required to be conducted by labor compliance programs by the Department of Industrial Relations.(c)For purposes of this chapter, labor compliance program means a labor compliance program that is approved, as specified in state regulations, by the Director of Industrial Relations.(d)For purposes of this chapter, the Director of Industrial Relations may revoke the approval of a labor compliance program in the manner specified in state regulations.
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3- Amended IN Assembly April 26, 2022 Amended IN Assembly March 31, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2803Introduced by Assembly Member ValladaresFebruary 18, 2022An act to add and repeal Sections 17053.84 and 23684 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 2803, as amended, Valladares. Income taxation: credits: dependent care.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care or backup care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% 25% of the contributions, or 50% 30% for a small employer taxpayer, as provided, not to exceed $500,000 $250,000 per taxable year. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill also would include additional information required for any bill authorizing a new tax credit. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ Amended IN Assembly March 31, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2803Introduced by Assembly Member Calderon ValladaresFebruary 18, 2022 An act to amend Section 1771.5 of the Labor Code, relating to public works. An act to add and repeal Sections 17053.84 and 23684 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 2803, as amended, Calderon Valladares. Public works: labor compliance. Income taxation: credits: dependent care.The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% of the contributions, or 50% for a small employer taxpayer, as provided, not to exceed $500,000 per taxable year. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill also would include additional information required for any bill authorizing a new tax credit. This bill would take effect immediately as a tax levy.Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages, the regulation of working hours, and the securing of workers compensation for public works projects. Existing law generally requires that not less than the general prevailing rate of per diem wages be paid to workers employed on public works projects, and imposes misdemeanor penalties for a willful violation of this requirement.Existing law authorizes the awarding body for a public works project to not require the payment of the general prevailing rate of per diem wages on public works projects of specified sizes and types of work, including construction projects of $25,000 or less, if the awarding body elects to initiate and enforce a labor compliance program containing specified requirements for every public works project under its authority, as specified.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
44
5- Amended IN Assembly April 26, 2022 Amended IN Assembly March 31, 2022
5+ Amended IN Assembly March 31, 2022
66
7-Amended IN Assembly April 26, 2022
87 Amended IN Assembly March 31, 2022
98
109 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
1110
1211 Assembly Bill
1312
1413 No. 2803
1514
16-Introduced by Assembly Member ValladaresFebruary 18, 2022
15+Introduced by Assembly Member Calderon ValladaresFebruary 18, 2022
1716
18-Introduced by Assembly Member Valladares
17+Introduced by Assembly Member Calderon Valladares
1918 February 18, 2022
2019
21-An act to add and repeal Sections 17053.84 and 23684 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
20+ An act to amend Section 1771.5 of the Labor Code, relating to public works. An act to add and repeal Sections 17053.84 and 23684 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
2221
2322 LEGISLATIVE COUNSEL'S DIGEST
2423
2524 ## LEGISLATIVE COUNSEL'S DIGEST
2625
27-AB 2803, as amended, Valladares. Income taxation: credits: dependent care.
26+AB 2803, as amended, Calderon Valladares. Public works: labor compliance. Income taxation: credits: dependent care.
2827
29-The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care or backup care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% 25% of the contributions, or 50% 30% for a small employer taxpayer, as provided, not to exceed $500,000 $250,000 per taxable year. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill also would include additional information required for any bill authorizing a new tax credit. This bill would take effect immediately as a tax levy.
28+The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% of the contributions, or 50% for a small employer taxpayer, as provided, not to exceed $500,000 per taxable year. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill also would include additional information required for any bill authorizing a new tax credit. This bill would take effect immediately as a tax levy.Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages, the regulation of working hours, and the securing of workers compensation for public works projects. Existing law generally requires that not less than the general prevailing rate of per diem wages be paid to workers employed on public works projects, and imposes misdemeanor penalties for a willful violation of this requirement.Existing law authorizes the awarding body for a public works project to not require the payment of the general prevailing rate of per diem wages on public works projects of specified sizes and types of work, including construction projects of $25,000 or less, if the awarding body elects to initiate and enforce a labor compliance program containing specified requirements for every public works project under its authority, as specified.This bill would make technical, nonsubstantive changes to those provisions.
3029
3130 The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
3231
33-This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care or backup care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% 25% of the contributions, or 50% 30% for a small employer taxpayer, as provided, not to exceed $500,000 $250,000 per taxable year.
32+This bill, under both laws, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a credit against those taxes for contributions paid or incurred by a taxpayer for qualified care for dependents, as specified, of the taxpayers employees, in an amount equal to 35% of the contributions, or 50% for a small employer taxpayer, as provided, not to exceed $500,000 per taxable year.
3433
3534 Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
3635
3736 The bill also would include additional information required for any bill authorizing a new tax credit.
3837
3938 This bill would take effect immediately as a tax levy.
4039
40+Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages, the regulation of working hours, and the securing of workers compensation for public works projects. Existing law generally requires that not less than the general prevailing rate of per diem wages be paid to workers employed on public works projects, and imposes misdemeanor penalties for a willful violation of this requirement.
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42+
43+
44+Existing law authorizes the awarding body for a public works project to not require the payment of the general prevailing rate of per diem wages on public works projects of specified sizes and types of work, including construction projects of $25,000 or less, if the awarding body elects to initiate and enforce a labor compliance program containing specified requirements for every public works project under its authority, as specified.
45+
46+
47+
48+This bill would make technical, nonsubstantive changes to those provisions.
49+
50+
51+
4152 ## Digest Key
4253
4354 ## Bill Text
4455
45-The people of the State of California do enact as follows:SECTION 1. Section 17053.84 is added to the Revenue and Taxation Code, to read:17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified care backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.(2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 2. Section 23684 is added to the Revenue and Taxation Code, to read:23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee. (2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 3. For the purpose of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.84 and 23684 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To recognize that working families require child and dependent care support to fully participate in the workforce.(2) To provide working families with additional dependent care support to address affordability and access issues and to help fill dependent care gaps.(3) To incentivize more employers to offer their employees dependent care support services.(b) To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall prepare a written report on all of the following:(1) The number and common characteristics of taxpayers claiming the credit.(2) The number and common characteristics of small employer taxpayers claiming the credit.(3) The average credit amount on taxpayer tax returns claiming the credit.(4) The average credit amount on small employer taxpayer tax returns claiming the credit.(5) The number of taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(6) The number of small employer taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(c) The Franchise Tax Board shall provide the written report prepared pursuant to subdivision (b), on or before ____, and in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Government and Finance, and the Assembly Committee on Revenue and Taxation. 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.
56+The people of the State of California do enact as follows:SECTION 1. Section 17053.84 is added to the Revenue and Taxation Code, to read:17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 2. Section 23684 is added to the Revenue and Taxation Code, to read:23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. SEC. 3. For the purpose of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.84 and 23684 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To recognize that working families require child and dependent care support to fully participate in the workforce.(2) To provide working families with additional dependent care support to address affordability and access issues and to help fill dependent care gaps.(3) To incentivize more employers to offer their employees dependent care support services.(b) To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall prepare a written report on all of the following:(1) The number and common characteristics of taxpayers claiming the credit.(2) The number and common characteristics of small employer taxpayers claiming the credit.(3) The average credit amount on taxpayer tax returns claiming the credit.(4) The average credit amount on small employer taxpayer tax returns claiming the credit.(5) The number of taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(6) The number of small employer taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(c) The Franchise Tax Board shall provide the written report prepared pursuant to subdivision (b), on or before ____, and in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Government and Finance, and the Assembly Committee on Revenue and Taxation. 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.SECTION 1.Section 1771.5 of the Labor Code is amended to read:1771.5.(a)Notwithstanding Section 1771, an awarding body may choose not to require the payment of the general prevailing rate of per diem wages or the general prevailing rate of per diem wages for holiday and overtime work for any public works project of twenty-five thousand dollars ($25,000) or less when the project is for construction work, or for any public works project of fifteen thousand dollars ($15,000) or less when the project is for alteration, demolition, repair, or maintenance work, if the awarding body has elected to initiate, and has been approved by the Director of Industrial Relations to enforce, a labor compliance program pursuant to subdivision (b) for every public works project under the authority of the awarding body.(b)For purposes of this section, a labor compliance program shall include, but not be limited to, the following requirements:(1)All bid invitations and public works contracts shall contain appropriate language concerning the requirements of this chapter.(2)A prejob conference shall be conducted with the contractor and subcontractors to discuss federal and state labor law requirements applicable to the contract.(3)Project contractors and subcontractors shall maintain and furnish, at a designated time, a certified copy of each weekly payroll containing a statement of compliance signed under penalty of perjury.(4)The awarding body shall review, and, if appropriate, audit payroll records to verify compliance with this chapter.(5)The awarding body shall withhold contract payments when payroll records are delinquent or inadequate.(6)The awarding body shall withhold contract payments equal to the amount of underpayment and applicable penalties when, after investigation, it is established that underpayment has occurred.(7)The awarding body shall comply with any other prevailing wage monitoring and enforcement activities that are required to be conducted by labor compliance programs by the Department of Industrial Relations.(c)For purposes of this chapter, labor compliance program means a labor compliance program that is approved, as specified in state regulations, by the Director of Industrial Relations.(d)For purposes of this chapter, the Director of Industrial Relations may revoke the approval of a labor compliance program in the manner specified in state regulations.
4657
4758 The people of the State of California do enact as follows:
4859
4960 ## The people of the State of California do enact as follows:
5061
51-SECTION 1. Section 17053.84 is added to the Revenue and Taxation Code, to read:17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified care backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.(2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
62+SECTION 1. Section 17053.84 is added to the Revenue and Taxation Code, to read:17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
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5364 SECTION 1. Section 17053.84 is added to the Revenue and Taxation Code, to read:
5465
5566 ### SECTION 1.
5667
57-17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified care backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.(2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
68+17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
5869
59-17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified care backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.(2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
70+17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
6071
61-17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified care backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.(2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
72+17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
6273
6374
6475
6576 17053.84. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the net tax, as defined in Section 17039, in an amount equal to the amount determined in subdivision (b).
6677
67-(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.
78+(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.
6879
69-(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.
80+(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.
7081
71-(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).
82+(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).
7283
7384 (c) For purposes of this section:
7485
7586 (1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:
7687
77-(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.
88+(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.
7889
79-(B) By directly paying or arranging for payment of qualified care backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.
90+(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.
8091
81-(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.
92+(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.
8293
83-(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.
94+(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.
8495
85-(2)
96+(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.
8697
87-
88-
89-(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.
90-
91-(3)
92-
93-
94-
95-(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.
96-
97-(4)
98-
99-
100-
101-(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:
98+(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:
10299
103100 (A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.
104101
105-
106-
107102 (B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.
108103
109-
110-
111-(5)
112-
113-
114-
115-(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.
104+(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.
116105
117106 (B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.
118107
119-(6)
108+(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.
120109
121-
122-
123-(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.
124-
125-(7)
126-
127-
128-
129-(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:
110+(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:
130111
131112 (A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.
132113
133114 (B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).
134115
135116 (d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.
136117
118+(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.
137119
120+(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.
138121
139-(e)
122+(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.
140123
124+(h) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.
141125
126+(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
142127
143-(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.
144-
145-(f)
146-
147-
148-
149-(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.
150-
151-(g)
152-
153-
154-
155-(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.
156-
157-(h)
158-
159-
160-
161-(g) If the credit allowed by this section exceeds the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding years if necessary until the credit has been exhausted.
162-
163-(i)
164-
165-
166-
167-(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
168-
169-SEC. 2. Section 23684 is added to the Revenue and Taxation Code, to read:23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee. (2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
128+SEC. 2. Section 23684 is added to the Revenue and Taxation Code, to read:23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
170129
171130 SEC. 2. Section 23684 is added to the Revenue and Taxation Code, to read:
172131
173132 ### SEC. 2.
174133
175-23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee. (2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
134+23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
176135
177-23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee. (2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
136+23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
178137
179-23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.(B) By directly paying or arranging for payment of qualified backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee. (2)(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3)(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4)(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A)By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B)Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5)(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6)(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7)(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d)If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e)(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f)(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g)(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h)(g) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i)(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
138+23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).(c) For purposes of this section:(1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.(B) Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.(B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:(A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.(B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).(d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.(h) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
180139
181140
182141
183142 23684. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed a credit against the tax, as defined in Section 23036, in an amount equal to the amount determined in subdivision (b).
184143
185-(b) (1) The amount of the credit allowed by this section shall be 35 25 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.
144+(b) (1) The amount of the credit allowed by this section shall be 35 percent of the costs paid or incurred by a taxpayer for contributions to qualified care.
186145
187-(2) The amount of the credit allowed by this section shall be 50 30 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.
146+(2) The amount of the credit allowed by this section shall be 50 percent of the cost paid or incurred by a small employer taxpayer for contributions to qualified care.
188147
189-(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five two hundred fifty thousand dollars ($500,000). ($250,000).
148+(3) The amount of the credit allowed by this section in any taxable year for a taxpayer or a small employer taxpayer shall not exceed five hundred thousand dollars ($500,000).
190149
191150 (c) For purposes of this section:
192151
193152 (1) Backup care means care provided to a qualified dependent when a qualified employees regular qualified care cannot be utilized. A taxpayer may provide backup care in any of the following ways:
194153
195-(A) By contracting with a qualified care provider or a backup care benefit provider and providing direct payments to the qualified care provider or making payments to a backup care benefit provider for backup care services.
154+(A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for backup care services.
196155
197-(B) By directly paying or arranging for payment of qualified backup care annually to a qualified care provider or a backup care benefits provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.
156+(B) By directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of backup care hours used by a qualified employee.
198157
199-(C) By reimbursing a qualified employee directly or through a backup care benefit provider for backup care paid directly by the employee.
158+(C) By reimbursing a qualified employee directly or through a backup care provider for backup care paid directly by the employee.
200159
201-(2) Backup care benefit provider means a third-party vendor that offers services to provide employees options for locating or arranging for the provision of backup care, either through various backup care benefit providers or through a reimbursement program for care paid directly by the employee.
160+(2) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.
202161
203-(2)
162+(3) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.
204163
205-
206-
207-(3) Contributions include direct payments for qualified care. Contributions do not include amounts contributed for qualified care pursuant to a salary reduction agreement to provide benefits under a dependent care assistance program within the meaning of Section 129 of the Internal Revenue Code, as applicable, for purposes of Part 11 (commencing with Section 23001) and this part.
208-
209-(3)
210-
211-
212-
213-(4) Employee includes an individual who is an employee within the meaning of Section 401(c)(1) of the Internal Revenue Code, relating to self-employed individuals.
214-
215-(4)
216-
217-
218-
219-(5) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:
164+(4) Qualified care includes, but is not limited to, onsite service, center-based service, in-home care or home-provider care, or backup care, provided to a qualified dependent. A taxpayer may provide qualified care in any of the following ways:
220165
221166 (A) By contracting with a qualified care provider and providing direct payments to the qualified care provider for qualified care services.
222167
223-
224-
225168 (B) Directly paying or arranging for payment of qualified care annually to a qualified care provider upon receipt of an invoice detailing the number of qualified care hours used by qualified employees.
226169
227-
228-
229-(5)
230-
231-
232-
233-(6) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.
170+(5) (A) Qualified dependent means a dependent of a qualified employee who is under the age of 14 years.
234171
235172 (B) Qualified dependent does not include a dependent of a qualified employee or that employees spouse if the dependent qualifies as a dependent under subdivision (d) of Section 17054.
236173
237-(6)
174+(6) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.
238175
239-
240-
241-(7) Qualified employee means an employee of the taxpayer or the small employer taxpayer who is performing services for the taxpayer or the small employer taxpayer in this state, within the meaning of Section 25133, during the period in which the qualified care is performed.
242-
243-(7)
244-
245-
246-
247-(8) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:
176+(7) Small employer taxpayer means, with respect to any taxable year, any taxpayer if both of the following apply:
248177
249178 (A) The average number of employees of the taxpayer on business days during the taxable year does not exceed 75.
250179
251180 (B) The gross receipts of the taxpayer during the taxable year do not exceed twenty-five million dollars ($25,000,000).
252181
253182 (d) If a taxpayer makes contributions to qualified care and also collects fees from parents to support a childcare facility owned and operated by the taxpayer, no credit shall be allowed under this section for contributions in the amount, if any, by which the sum of the contributions and fees exceed the total cost of providing care. The Franchise Tax Board may require the taxpayer to provide information about fees collected from parents of children.
254183
184+(e) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.
255185
186+(f) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.
256187
257-(e)
188+(g) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.
258189
190+(h) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.
259191
260-
261-(d) If the credit is claimed by a taxpayer for contributions to qualified care that is used at a facility owned by the taxpayer, the basis of that facility shall be reduced by the amount of the credit. The basis adjustment shall be made for the taxable year for which the credit is allowed.
262-
263-(f)
264-
265-
266-
267-(e) In order to be allowed the credit authorized under this section, the taxpayer shall indicate, in the form and manner prescribed by the Franchise Tax Board, the number of qualified dependents provided qualified care.
268-
269-(g)
270-
271-
272-
273-(f) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.
274-
275-(h)
276-
277-
278-
279-(g) If the credit allowed by this section exceeds the tax, the excess may be carried over to reduce the tax in the following year, and succeeding years if necessary until the credit has been exhausted.
280-
281-(i)
282-
283-
284-
285-(h) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
192+(i) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
286193
287194 SEC. 3. For the purpose of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.84 and 23684 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To recognize that working families require child and dependent care support to fully participate in the workforce.(2) To provide working families with additional dependent care support to address affordability and access issues and to help fill dependent care gaps.(3) To incentivize more employers to offer their employees dependent care support services.(b) To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall prepare a written report on all of the following:(1) The number and common characteristics of taxpayers claiming the credit.(2) The number and common characteristics of small employer taxpayers claiming the credit.(3) The average credit amount on taxpayer tax returns claiming the credit.(4) The average credit amount on small employer taxpayer tax returns claiming the credit.(5) The number of taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(6) The number of small employer taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(c) The Franchise Tax Board shall provide the written report prepared pursuant to subdivision (b), on or before ____, and in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Government and Finance, and the Assembly Committee on Revenue and Taxation.
288195
289196 SEC. 3. For the purpose of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.84 and 23684 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(a) The specific goals, purposes, and objectives that the credit will achieve are as follows:(1) To recognize that working families require child and dependent care support to fully participate in the workforce.(2) To provide working families with additional dependent care support to address affordability and access issues and to help fill dependent care gaps.(3) To incentivize more employers to offer their employees dependent care support services.(b) To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall prepare a written report on all of the following:(1) The number and common characteristics of taxpayers claiming the credit.(2) The number and common characteristics of small employer taxpayers claiming the credit.(3) The average credit amount on taxpayer tax returns claiming the credit.(4) The average credit amount on small employer taxpayer tax returns claiming the credit.(5) The number of taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(6) The number of small employer taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.(c) The Franchise Tax Board shall provide the written report prepared pursuant to subdivision (b), on or before ____, and in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Government and Finance, and the Assembly Committee on Revenue and Taxation.
290197
291198 SEC. 3. For the purpose of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.84 and 23684 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:
292199
293200 ### SEC. 3.
294201
295202 (a) The specific goals, purposes, and objectives that the credit will achieve are as follows:
296203
297204 (1) To recognize that working families require child and dependent care support to fully participate in the workforce.
298205
299206 (2) To provide working families with additional dependent care support to address affordability and access issues and to help fill dependent care gaps.
300207
301208 (3) To incentivize more employers to offer their employees dependent care support services.
302209
303210 (b) To measure whether the credit achieves its intended purpose, the Franchise Tax Board shall prepare a written report on all of the following:
304211
305212 (1) The number and common characteristics of taxpayers claiming the credit.
306213
307214 (2) The number and common characteristics of small employer taxpayers claiming the credit.
308215
309216 (3) The average credit amount on taxpayer tax returns claiming the credit.
310217
311218 (4) The average credit amount on small employer taxpayer tax returns claiming the credit.
312219
313220 (5) The number of taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.
314221
315222 (6) The number of small employer taxpayers claiming the credit in a taxable year that have not claimed the credit for a previous taxable year.
316223
317224 (c) The Franchise Tax Board shall provide the written report prepared pursuant to subdivision (b), on or before ____, and in compliance with Section 9795 of the Government Code, to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Government and Finance, and the Assembly Committee on Revenue and Taxation.
318225
319226 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.
320227
321228 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.
322229
323230 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.
324231
325232 ### SEC. 4.
233+
234+
235+
236+
237+
238+(a)Notwithstanding Section 1771, an awarding body may choose not to require the payment of the general prevailing rate of per diem wages or the general prevailing rate of per diem wages for holiday and overtime work for any public works project of twenty-five thousand dollars ($25,000) or less when the project is for construction work, or for any public works project of fifteen thousand dollars ($15,000) or less when the project is for alteration, demolition, repair, or maintenance work, if the awarding body has elected to initiate, and has been approved by the Director of Industrial Relations to enforce, a labor compliance program pursuant to subdivision (b) for every public works project under the authority of the awarding body.
239+
240+
241+
242+(b)For purposes of this section, a labor compliance program shall include, but not be limited to, the following requirements:
243+
244+
245+
246+(1)All bid invitations and public works contracts shall contain appropriate language concerning the requirements of this chapter.
247+
248+
249+
250+(2)A prejob conference shall be conducted with the contractor and subcontractors to discuss federal and state labor law requirements applicable to the contract.
251+
252+
253+
254+(3)Project contractors and subcontractors shall maintain and furnish, at a designated time, a certified copy of each weekly payroll containing a statement of compliance signed under penalty of perjury.
255+
256+
257+
258+(4)The awarding body shall review, and, if appropriate, audit payroll records to verify compliance with this chapter.
259+
260+
261+
262+(5)The awarding body shall withhold contract payments when payroll records are delinquent or inadequate.
263+
264+
265+
266+(6)The awarding body shall withhold contract payments equal to the amount of underpayment and applicable penalties when, after investigation, it is established that underpayment has occurred.
267+
268+
269+
270+(7)The awarding body shall comply with any other prevailing wage monitoring and enforcement activities that are required to be conducted by labor compliance programs by the Department of Industrial Relations.
271+
272+
273+
274+(c)For purposes of this chapter, labor compliance program means a labor compliance program that is approved, as specified in state regulations, by the Director of Industrial Relations.
275+
276+
277+
278+(d)For purposes of this chapter, the Director of Industrial Relations may revoke the approval of a labor compliance program in the manner specified in state regulations.