AB 916: Income taxes: California work opportunity tax credit.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill, for each taxable year beginning on or after January 1, 2019, and before January 1, 2026, would allow a credit against the taxes imposed under both laws to a qualified employer that qualifies for the federal Work Opportunity Tax Credit in an amount equal to 40% of the qualified first-year wages paid or incurred during the taxable year to a qualified employee who is a member of a targeted group, as defined in federal tax law. employer, as defined, in an amount equal to that allowed under the federal Work Opportunity Tax Credit, as modified. The bill would prohibit the credit from exceeding $2,400 per qualified employee per taxable year. The bill would make related declarations, and would require the Employment Development Department to prepare a specified report, related to the specific goals, purposes, and objectives, performance indicators, and data collection requirements for these credits.

This bill would take effect immediately as a tax levy.