Personal Income Tax Law: Corporation Tax Law: credits: fast food restaurants.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
Assembly Bill 895 creates a tax credit for qualified fast food restaurant franchisees and independent operators in California. The credit, up to $12,000 per restaurant, is intended to offset increased unemployment insurance costs resulting from state-mandated minimum wage increases. The bill takes effect immediately and is designed to provide financial relief to these businesses. It also includes provisions for reporting and oversight to ensure proper credit utilization.
Key provisions
- Allows a $12,000 tax credit per qualified fast food restaurant for eligible taxpayers.
- Defines ‘qualified fast food restaurant’ as a restaurant subject to specific Labor Code provisions.
- Defines ‘qualified taxpayer’ as a franchisee or independent operator with no more than 45 locations under common ownership.
- Allows carryover of unused credits to subsequent tax years (up to three years).
- Requires employers to demonstrate compliance with Labor Code provisions and maintain an active unemployment insurance account.
- Establishes reporting requirements for the Franchise Tax Board regarding credit claims.
- The credit is set to expire on December 1, 2031.
- Includes a provision to address a minor change to a cannabis prohibition related to giveaways.
Who is affected
- Fast food restaurant franchisees
- Independent fast food restaurant operators
Bill text
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Sponsors
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1 on record
Primary sponsor
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