BILL NUMBER: SB 1197	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Calderon

                        FEBRUARY 22, 2012

   An act to add Sections 17053.8 and 23621.8 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1197, as introduced, Calderon. Income taxes: hiring credit:
veterans.
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
   This bill would, for taxable years beginning on or after January
1, 2012, allow a credit against those taxes in an amount equal to
____% of the qualified first-year wages, as defined, paid by the
taxpayer to a qualified veteran, as defined, 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 17053.8 is added to the Revenue and Taxation
Code, to read:
   17053.8.  (a) For each taxable year beginning on or after January
1, 2012, there shall be allowed as a credit against the "net tax," as
defined in Section 17039, an amount equal to ____ percent of the
qualified first-year wages paid by the taxpayer to a qualified
veteran during the taxable year.
   (b) For the purposes of this section:
   (1) "Qualified veteran" has the same meaning as defined in Section
51(d)(3) of the Internal Revenue Code.
   (2) "Qualified wages" has the same meaning as defined in Section
51(b) of the Internal Revenue Code.
   (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 succeeding years if necessary, until the
credit is exhausted.
   (d)  (1) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes of
this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code shall not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
  SEC. 2.  Section 23621.8 is added to the Revenue and Taxation Code,
to read:
   23621.8.  (a) For each taxable year beginning on or after January
1, 2012, there shall be allowed as a credit against the "tax," as
defined in Section 23036, an amount equal to ____ percent of the
qualified first-year wages paid by the taxpayer to a qualified
veteran during the taxable year.
   (b) For the purposes of this section:
   (1) "Qualified veteran" has the same meaning as defined in Section
51(d)(3) of the Internal Revenue Code.
   (2) "Qualified wages" has the same meaning as defined in Section
51(b) of the Internal Revenue Code.
   (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 succeeding years if necessary, until the credit
is exhausted.
   (d)  (1) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes of
this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code shall not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.