BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 106
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 106 (Budget Committee)
          As Amended September 10, 2013
          2/3 vote  
           
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          |ASSEMBLY:  |51-24|(May 13, 2013)  |SENATE: |39-0 |(September 11, |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    BUDGET

          SUMMARY  :   Makes technical clarifications to the Enterprise Zone  
          programs that are set to expire on December 31, 2013, according  
          to SB 90 (Galgiani), Chapter 70, Statutes of 2013, and AB 93  
          (Budget Committee), Chapter 69, Statutes of 2013.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Revise the provisions to allow a taxpayer to apply for a  
            voucher to claim a hiring credit until January 1, 2015, for  
            tax incentive programs that are scheduled to end by December  
            31, 2013, through local agencies established prior to the  
            passage of AB 93 (Budget Committee).  State that the taxpayer  
            must apply for and the local agency must issue the voucher no  
            later than January 1, 2015.  

          2)Clarify that the hiring tax credits for Enterprise Zone (EZs)  
            and Local Agency Military Base Recovery Areas (LAMBRAs) shall  
            not be allowed with respect to any employee starting  
            employment on or after January 1, 2014.  

          3)Clarify that a taxpayer may carry forward existing tax credits  
            earned under Targeted Tax Areas, LAMBRAs, Manufacturing  
            Enhancement Areas, and EZs, for a period of 10 years,  
            beginning with the 2014 taxable year.  Under existing law, for  
            credits earned on or after January 1, 2014, the carry forward  
            period is 10 years after the credit is earned.

           FISCAL EFFECT  :  Unknown  
           
          COMMENTS  :  This bill provides additional clarification to the  
          two EZ bills that were passed in June of 2013.  This bill  
          ensures that additional concerns with the vouchering process and  








                                                                  AB 106
                                                                  Page  2

          the hiring credit provisions are addressed prior to the  
          implementation in January. 
           

          Analysis Prepared by:    Genevieve Morelos / BUDGET/ (916)  
          319-2099 


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