BILL NUMBER: SB 640	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Runner

                        FEBRUARY 18, 2011

   An act to add Sections 17053.50 and 23650 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 640, as introduced, Runner. Income and corporation taxes: tax
credit: employment.
   The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws.
   This bill would, under both laws, provide a tax credit, in an
amount as specified, to a taxpayer for each qualified employee, as
defined, who has received unemployment insurance benefits for 6
months prior to the time the taxpayer hires the qualified employee.
   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 17053.50 is added to the Revenue and Taxation
Code, to read:
   17053.50.  (a) For taxable years beginning on or after January 1,
2011, there shall be allowed as a credit against the "net tax," as
defined in Section 17039, a qualified amount for each qualified
employee employed by the taxpayer in a qualified job during the
taxable year.
   (b) For purposes of this section, the following definitions apply:

   (1) "Qualified amount" shall be equal to the sum of five hundred
dollars ($500) per month for each qualified employee employed by the
taxpayer in a qualified job, multiplied by the number of consecutive
calendar months that the taxpayer employs the qualified employee in a
qualified job, but not to exceed 12 consecutive calendar months.
   (2) "Qualified employee" means any person who received
unemployment insurance benefits for not less than six months prior to
the time he or she was hired by the taxpayer for a qualified job.
   (3) "Qualified job" means a nonseasonal, full-time employment
position within the State of California that would qualify the
employee for benefits under the Unemployment Insurance Code, not
including any benefits received under Section 1279.5 of the
Unemployment Insurance Code, and result in a salary of not less than
one thousand dollars ($1,000) in any month in which the taxpayer
seeks to apply the credit authorized by this section.
   (c) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and the five succeeding years if necessary,
until the credit is exhausted.
  SEC. 2.  Section 23650 is added to the Revenue and Taxation Code,
to read:
   23650.  (a) For taxable years beginning on or after January 1,
2011, there shall be allowed as a credit against the "tax," as
defined in Section 23036, a qualified amount for each qualified
employee employed by the taxpayer in a qualified job during the
taxable year.
   (b) For purposes of this section, the following definitions apply:

   (1) "Qualified amount" shall be equal to the sum of five hundred
dollars ($500) per month for each qualified employee employed by the
taxpayer in a qualified job, multiplied by the number of consecutive
calendar months that the taxpayer employs the qualified employee in a
qualified job, but not to exceed 12 consecutive calendar months.
   (2) "Qualified employee" means any person who received
unemployment insurance benefits for at least six months prior to the
time he or she was hired by the taxpayer for a qualified job.
   (3) "Qualified job" means a nonseasonal, full-time employment
position within the State of California that would qualify the
employee for benefits under the Unemployment Insurance Code, not
including any benefits received under Section 1279.5 of the
Unemployment Insurance Code, and result in a salary of not less than
one thousand dollars ($1,000) in any month in which the taxpayer
seeks to apply the credit authorized by this section.
   (c) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the five succeeding years if necessary, until the
credit is 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.