Income and corporation taxes: credits: work opportunity credit.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a tax credit for California businesses that hire individuals with felony convictions. Qualified businesses with fewer than five employees can receive a credit equal to 40% of the first-year wages paid to these employees, up to a maximum of $5,000 per year. The credit is intended to help reduce recidivism rates and is subject to specific requirements regarding data collection and reporting.
Key provisions
- Allows a 40% tax credit for qualified first-year wages paid to qualified employees.
- A qualified employee must have a felony conviction and be hired within one year of release from prison.
- Qualified taxpayers must have fewer than five employees.
- The credit cannot exceed $5,000 per year.
- The credit is available for taxable years beginning January 1, 2026, and ending December 31, 2030.
- Requires reporting on the number of credits issued and average credit value to the legislature.
- Excludes certain wage payments, such as those related to federal job training programs or strike/lockout situations.
- The credit is temporary and will expire on December 1, 2031.
Who is affected
- California Businesses
- Individuals with Felony Convictions
- Taxpayers
- Employers
- The Tax System
Notable changes
Bill text
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Sponsors
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Primary sponsor
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