Bill Text: CA SB1056 | 2009-2010 | Regular Session | Amended
Bill Title: Income taxes: hiring credit: veterans.
Spectrum: Slight Partisan Bill (Republican 6-2)
Status: (Introduced - Dead) 2010-05-24 - From committee with author's amendments. Read second time. Amended. Re-referred to Com. on REV. & TAX. [SB1056 Detail]
Download: California-2009-SB1056-Amended.html
BILL NUMBER: SB 1056 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 24, 2010
AMENDED IN SENATE APRIL 21, 2010
INTRODUCED BY Senator Denham
(Coauthors: Senators Maldonado and Wiggins)
(Coauthors: Assembly Members Davis, DeVore, Fletcher, Gilmore, and
Jeffries)
FEBRUARY 16, 2010
An act to add Sections 17053.81 and 23623.3 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1056, as amended, Denham. Income taxes: hiring credit:
veterans.
The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws, including a
credit for an increase in qualified employees of a qualified
employer.
This bill would, under both laws, for taxable years beginning on
and after January 1, 2010, allow a credit in an amount equal to 25%
of the wages, not exceeding $6,000, paid to each qualified veteran,
as defined, by the taxpayer during the taxable year.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17053.81 is added to the Revenue and Taxation
Code, to read:
17053.81. (a) For each taxable year beginning on or after January
1, 2010, there shall be allowed a credit in the amount specified in
subdivision (b) against the "net tax," as defined by Section 17039,
to a taxpayer who employs a qualified veteran during the taxable
year.
(b) The credit amount shall be 25 percent of the wages, not
exceeding six thousand dollars ($6,000), paid to each qualified
veteran by the taxpayer during the taxable year.
(c) For purposes of this section, "qualified veteran" means a
member of the Armed Forces of the United States who has been
honorably discharged from service within the five calendar years
preceding employment by the taxpayer, who received unemployment
compensation within California for not less than four weeks within
the 12 calendar months preceding the date of employment by the
taxpayer, and who is employed by the taxpayer for at least 120 hours
during the taxable year in which the credit is claimed.
(d) The credit allowed by this section shall be decreased by the
amount of any other credit or deduction that the taxpayer may
otherwise claim pursuant to this part with respect to qualified wages
or qualified employees.
(c) For purposes of this section:
(1) "Qualified veteran" means a member of the Armed Forces of the
United States who has been honorably discharged from service within
the five calendar years preceding employment by the taxpayer, who
received unemployment compensation within California for not less
than four weeks within the 12 calendar months preceding the date of
employment by the taxpayer, and who is employed by the taxpayer for
at least 120 hours during the taxable year for which the credit is
claimed.
(2) "Wages" means wages that are subject to Division 6 (commencing
with Section 13000) of the Unemployment Insurance Code.
(d) Any deduction otherwise allowable under this part for
qualified wages shall be reduced by the amount of the credit allowed
under this section.
(e) In the case where the credit allowed under this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and succeeding years if necessary,
until the credit has been exhausted.
SEC. 2. Section 23623.3 is added to the Revenue and Taxation Code,
to read:
23623.3. (a) For each taxable year beginning on or after January
1, 2010, there shall be allowed a credit in the amount specified in
subdivision (b) against the "net tax," "tax,"
as defined by Section 23036, to a taxpayer who employs a
qualified veteran during the taxable year.
(b) The credit amount shall be 25 percent of the wages, not
exceeding six thousand dollars ($6,000), paid to each qualified
veteran by the taxpayer during the taxable year.
(c) For purposes of this section, "qualified veteran" means a
member of the Armed Forces of the United States who has been
honorably discharged from service within the five calendar years
preceding employment by the taxpayer, who received unemployment
compensation within California for not less than four weeks within
the 12 calendar months preceding the date of employment by the
taxpayer, and who is employed by the taxpayer for at least 120 hours
during the taxable year in which the credit is claimed.
(d) The credit allowed by this section shall be decreased by the
amount of any other credit or deduction that the taxpayer may
otherwise claim pursuant to this part with respect to qualified wages
or qualified employees.
(c) For purposes of this section:
(1) "Qualified veteran" means a member of the Armed Forces of the
United States who has been honorably discharged from service within
the five calendar years preceding unemployment by the taxpayer, who
received unemployment compensation within California for not less
than four weeks within the 12 calendar months preceding the date of
employment by the taxpayer, and who is employed by the taxpayer for
at least 120 hours during the taxable year for which the credit is
claimed.
(2) "Wages" means wages subject to Division 6 (commencing with
Section 13000) of the Unemployment Insurance Code.
(d) Any deduction otherwise allowable under this part for
qualified wages shall be reduced by the amount of the credit allowed
under this section.
(e) In the case where the credit allowed under this section
exceeds the "net tax," "tax," the
excess may be carried over to reduce the "net tax"
"tax" in the following year, and succeeding years if
necessary, until the credit has been exhausted.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
