BILL ANALYSIS Ó AB 106 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 106 (Budget Committee) As Amended September 10, 2013 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: |51-24|(May 13, 2013) |SENATE: |39-0 |(September 11, | | | | | | |2013) | ----------------------------------------------------------------- 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 FN: 0002813