AB 2932: Corporation Tax Law: credit: employment.

The Corporation Tax Law allows various credits against the taxes imposed by that law. 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.

This bill, upon appropriation of specified funds by the Legislature, for each taxable year beginning on and after January 1, 2019, and before January 1, 2026, 2024, unless the annual budget act lacks a specific appropriation of funds to reimburse the Franchise Tax Board for administrative costs, would allow a credit against the taxes imposed under that law to a qualified taxpayer, as defined to mean a taxpayer that increases its workforce by 20 annual full-time equivalent qualified employees, as compared to the taxpayers base year, in an amount equal to 17.5% of qualified wages paid or incurred during the taxable year to a qualified employee, not to exceed $5,000,000 per qualified taxpayer per taxable year. The bill would limit the credit to the first 5 consecutive, taxable years after a qualified taxpayer first qualifies to receive the credit, subject to specified requirements. The bill would limit the aggregate amount of credits to be allocated in each calendar year to up to $50,000,000 plus the unused allocation credit amount, if any, for the preceding calendar year. The bill would require the Franchise Tax Board to allocate and certify credits to taxpayers on a first-come-first-served basis. The bill also would include that additional information required for any bill authorizing a new income tax credit.

This bill would take effect immediately as a tax levy.