BILL NUMBER: SBX8 63	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Denham
   (Coauthors: Senators Dutton and Wyland)

                        FEBRUARY 16, 2010

   An act to add Sections 17053.81 and 23623.2 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 63, as introduced, 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 to exceed $6,000, paid to each qualified veteran,
as defined, by the taxpayer during the taxable year.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on January
8, 2010.
   This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on January 8, 2010,
pursuant to the California Constitution.
   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 to
exceed 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.
   (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," 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 to
exceed 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.
   (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. 3.  This act addresses the fiscal emergency declared by the
Governor by proclamation on January 8, 2010, pursuant to subdivision
(f) of Section 10 of Article IV of the California Constitution.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.