Income and corporation taxes: credits: work opportunity credit.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Revenue and Taxation
Take action
Record your position on this measure.
Create an account to record your position, submit testimony, or contact your legislator.
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 qualified businesses in California. It allows businesses with fewer than five employees to claim a credit equal to 40% of the first-year wages paid to a newly hired employee who is a formerly incarcerated individual. The employee must have been convicted of a felony and hired within one year of their release from prison, and must work in California. The credit cannot exceed $5,000 per year.
Key provisions
- Allows a 40% credit against taxes for qualified first-year wages paid to qualified employees.
- A qualified employee must have been convicted of a felony and 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 applies to wages paid to qualified employees working in California.
- Specific rules exclude certain wage payments, such as those related to federal job training programs or strike/lockout situations.
- Requires reporting on credit recipients and credit amounts to the legislature.
- The credit is temporary, expiring on December 1, 2032.
Who is affected
- Businesses with fewer than five employees
- Formerly incarcerated individuals
- California employers
- Taxpayers
- The Franchise Tax Board
Notable changes
Bill text
Read the latest version inline or switch to a previous version.
Text extraction is in progress. View the official source.
Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Arguments
Reasons offered for and against this legislation.
Arguments in favor
No arguments in favor have been submitted.
Submit yoursArguments opposed
No arguments opposed have been submitted.
Submit yours