AB 825, as introduced, Medina. Income taxes: credits: hiring full-time employees.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including a credit for taxable years beginning on or after January 1, 2009, in the amount of $3,000 for each qualified full-time employee hired by a qualified employer. Those laws define “qualified employer” as a taxpayer that employed 20 or fewer employees as of the last day of the preceding taxable year.
This bill would, under both laws, for taxable years beginning on or after January 1, 2013, expand the definition of “qualified employer” to mean a taxpayer that employed 50 or fewer employees as of the last day of the preceding taxable year.
This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2⁄3 of the membership of each house of the Legislature.
This bill would take effect immediately as a tax levy.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17053.80 of the Revenue and Taxation
2Code, as added by Section 3 of Chapter 10 of the Third
3Extraordinary Session of the Statutes of 2009, is repealed.
(a) For each taxable year beginning on or after
5January 1, 2009, there shall be allowed as a credit against the “net
6tax,” as defined in Section 17039, three thousand dollars ($3,000)
7for each net increase in qualified full-time employees, as specified
8in subdivision (c), hired during the taxable year by a qualified
9employer.
10(b) For purposes of this section:
11(1) “Acquired”
includes any gift, inheritance, transfer incident
12to divorce, or any other transfer, whether or not for consideration.
13(2) “Qualified full-time employee” means:
14(A) A qualified employee who was paid qualified wages by the
15qualified employer for services of not less than an average of 35
16hours per week.
17(B) A qualified employee who was a salaried employee and
18was paid compensation during the taxable year for full-time
19employment, within the meaning of Section 515 of the Labor Code,
20by the qualified employer.
21(3) A “qualified employee” shall not include any of the
22following:
23(A) An employee certified as a qualified employee in an
24enterprise zone designated in accordance with Chapter 12.8
25
(commencing with Section 7070) of Division 7 of Title 1 of the
26Government Code.
27(B) An employee certified as a qualified disadvantaged
28individual in a manufacturing enhancement area designated in
29accordance with Section 7073.8 of the Government Code.
30(C) An employee certified as a qualified employee in a targeted
31tax area designated in accordance with Section 7097 of the
32Government Code.
33(D) An employee certified as a qualified disadvantaged
34individual or a qualified displaced employee in a local agency
35military base recovery area (LAMBRA) designated in accordance
36with Chapter 12.97 (commencing with Section 7105) of Division
377 of Title 1 of the Government Code.
P3 1(E) An employee whose wages are included in calculating any
2other credit allowed under this
part.
3(4) “Qualified employer” means a taxpayer that, as of the last
4day of the preceding taxable year, employed a total of 20 or fewer
5employees.
6(5) “Qualified wages” means wages subject to Division 6
7(commencing with Section 13000) of the Unemployment Insurance
8Code.
9(6) “Annual full-time equivalent” means either of the following:
10(A) In the case of a full-time employee paid hourly qualified
11wages, “annual full-time equivalent” means the total number of
12hours worked for the taxpayer by the employee (not to exceed
132,000 hours per employee) divided by 2,000.
14(B) In the case of a salaried full-time employee, “annual
15full-time equivalent” means the total number of weeks worked for
16the
taxpayer by the employee divided by 52.
17(c) The net increase in qualified full-time employees of a
18qualified employer shall be determined as provided by this
19subdivision:
20(1) (A) The net increase in qualified full-time employees shall
21be determined on an annual full-time equivalent basis by
22subtracting from the amount determined in subparagraph (C) the
23amount determined in subparagraph (B).
24(B) The total number of qualified full-time employees employed
25in the preceding taxable year by the taxpayer and by any trade or
26business acquired by the taxpayer during the current taxable year.
27(C) The total number of full-time employees employed in the
28current taxable year by the taxpayer and by any trade or business
29acquired during the
current taxable year.
30(2) For taxpayers who first commence doing business in this
31state during the taxable year, the number of full-time employees
32for the immediately preceding prior taxable year shall be zero.
33(d) In the case where the credit allowed by this section exceeds
34the “net tax,” the excess may be carried over to reduce the “net
35tax” in the following year, and succeeding seven years if necessary,
36until the credit is exhausted.
37(e) Any deduction otherwise allowed under this part for qualified
38wages shall not be reduced by the amount of the credit allowed
39under this section.
40(f) For purposes of this section:
P4 1(1) All employees of the trades or businesses that are treated as
2related
under either Section 267, 318, or 707 of the Internal
3Revenue Code shall be treated as employed by a single taxpayer.
4(2) In determining whether the taxpayer has first commenced
5doing business in this state during the taxable year, the provisions
6of subdivision (f) of Section 17276, without application of
7paragraph (7) of that subdivision, shall apply.
8(g) (1) (A) Credit under this section and Section 23623 shall
9be allowed only for credits claimed on timely filed original returns
10received by the Franchise Tax Board on or before the cut-off date
11established by the Franchise Tax Board.
12(B) For purposes of this paragraph, the cut-off date shall be the
13last day of the calendar quarter within which the Franchise Tax
14Board estimates it will have received timely filed original
returns
15claiming credits under this section and Section 23623 that
16cumulatively total four hundred million dollars ($400,000,000)
17for all taxable years.
18(2) The date a return is received shall be determined by the
19Franchise Tax Board.
20(3) (A) The determinations of the Franchise Tax Board with
21respect to the cut-off date, the date a return is received, and whether
22a return has been timely filed for purposes of this subdivision may
23not be reviewed in any administrative or judicial proceeding
24(B) Any disallowance of a credit claimed due to a determination
25under this subdivision, including the application of the limitation
26specified in paragraph (1), shall be treated as a mathematical error
27appearing on the return. Any amount of tax resulting from such
28disallowance may be assessed by the Franchise
Tax Board in the
29same manner as provided by Section 19051.
30(4) The Franchise Tax Board shall periodically provide notice
31on its Web site with respect to the amount of credit under this
32section and Section 23623 claimed on timely filed original returns
33received by the Franchise Tax Board.
34(h) (1) The Franchise Tax Board may prescribe rules, guidelines
35or procedures necessary or appropriate to carry out the purposes
36of this section, including any guidelines regarding the limitation
37on total credits allowable under this section and Section 23623
38and guidelines necessary to avoid the application of paragraph (2)
39of subdivision (f) through split-ups, shell corporations, partnerships,
40tiered ownership structures, or otherwise.
P5 1(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
2Division 3 of
Title 2 of the Government Code does not apply to
3any standard, criterion, procedure, determination, rule, notice, or
4guideline established or issued by the Franchise Tax Board
5pursuant to this section.
6(i) This section shall remain in effect only until December 1 of
7the calendar year after the year of the cut-off date, and as of that
8December 1 is repealed.
Section 17053.80 of the Revenue and Taxation Code,
10as added by Section 3 of Chapter 17 of the Third Extraordinary
11Session of the Statutes of 2009, is amended to read:
(a) For each taxable year beginning on or after
13January 1, 2009, there shall be allowed as a credit against the “net
14tax,” as defined in Section 17039, three thousand dollars ($3,000)
15for each net increase in qualified full-time employees, as specified
16in subdivision (c), hired during the taxable year by a qualified
17employer.
18(b) For purposes of this section:
19(1) “Acquired” includes any gift, inheritance, transfer incident
20to divorce, or any other transfer, whether or not for consideration.
21(2) “Qualified full-time employee” means:
22(A) A qualified employee who was paid qualified wagesbegin insert during
23the taxable yearend insert by the qualified employer for services of not less
24than an average of 35 hours per week.
25(B) A qualified employee who was a salaried employee and
26was paid compensation during the taxable year for full-time
27employment, within the meaning of Section 515 of the Labor Code,
28by the qualified employer.
29(3) A “qualified employee” shall not include any of the
30following:
31(A) An employee certified as a qualified employee in an
32enterprise zone designated in accordance with Chapter 12.8
33(commencing with Section 7070) of Division 7 of Title 1 of the
34Government Code.
35(B) An employee certified as a qualified disadvantaged
36individual in a manufacturing enhancement area designated in
37accordance with Section 7073.8 of the Government Code.
38(C) An employee certified as a qualified employee in a targeted
39tax area designated in accordance with Section 7097 of the
40Government Code.
P6 1(D) An employee certified as a qualified disadvantaged
2individual or a qualified displaced employee in a local agency
3military base recovery area (LAMBRA) designated in accordance
4with Chapter 12.97 (commencing with Section 7105) of Division
57 of Title 1 of the Government Code.
6(E) An employee whose wages are included in calculating any
7other credit allowed under this part.
8(4) begin delete“Qualified end deletebegin insert(A)end insertbegin insert end insertbegin insertFor taxable years beginning on or after
9January 1, 2009, and before January 1, 2013, “qualified end insertemployer”
10means a taxpayer that, as of the last day of the preceding taxable
11year, employed a total of 20 or fewer employees.
12(B) For taxable years beginning on or after January 1, 2013,
13“qualified employer” means a taxpayer that, as of the last day of
14the preceding taxable year, employed a total of 50 or fewer
15employees.
16(5) “Qualified wages” means wages subject to Division 6
17(commencing with Section 13000) of the Unemployment Insurance
18Code.
19(6) “Annual full-time equivalent” means either of the following:
20(A) In the case of a full-time employeebegin insert who wasend insert paid hourly
21qualified wages, “annual full-time equivalent” means the total
22number of hours worked for the taxpayer by the employee (not to
23exceed 2,000 hours per employee) divided by 2,000.
24(B) In the case of a salaried full-time employee, “annual
25full-time equivalent” means the total number of weeks worked for
26the taxpayer by the employee divided by 52.
27(c) The net increase in qualified full-time employees of a
28qualified employer shall be determined as provided by this
29subdivision:
30(1) (A) The net increase in qualified full-time employees shall
31be determined on an annual full-time equivalent basis by
32subtracting from the amount
determined in subparagraph (C) the
33amount determined in subparagraph (B).
34(B) The total number of qualified full-time employees employed
35in the preceding taxable year by the taxpayer and by any trade or
36business acquired by the taxpayer during the current taxable year.
37(C) The total number of full-time employees employed in the
38current taxable year by the taxpayer and by any trade or business
39acquired during the current taxable year.
P7 1(2) For taxpayersbegin delete whoend deletebegin insert
thatend insert first commence doing business in
2this state during the taxable year, the number of full-time
3employees for the immediately preceding prior taxable year shall
4be zero.
5(d) In the case where the credit allowed by this section exceeds
6the “net tax,” the excess may be carried over to reduce the “net
7tax” in the following year, and succeeding seven years if necessary,
8until the credit is exhausted.
9(e) begin deleteAny end deletebegin insertA end insertdeduction otherwise allowed under this part for
10qualified wages shall not be reduced by the amount of the credit
11allowed under this section.
12(f) For purposes of this section:
13(1) All employees of the trades or businesses that are treated as
14related under either Section 267, 318, or 707 of the Internal
15Revenue Code shall be treated as employed by a single taxpayer.
16(2) In determining whether the taxpayer has first commenced
17doing business in this state during the taxable year, the provisions
18of subdivision (f) of Sectionbegin delete 17276,end deletebegin insert 17276.20,end insert without application
19of paragraph (7) of that subdivision, shall apply.
20(g) (1) (A) Credit under this section and Section 23623 shall
21be allowed only for credits claimed on timely filed original returns
22received by the Franchise Tax Board on or before the cut-off date
23established by the Franchise Tax Board.
24(B) For purposes of this paragraph, the cut-off date shall be the
25last day of the calendar quarter within which the Franchise Tax
26Board estimates it will have received timely filed original returns
27claiming credits under this section and Section 23623 that
28cumulatively total four hundred million dollars ($400,000,000)
29for all taxable years.
30(2) The date a return is received shall be determined by the
31Franchise Tax Board.
32(3) (A) The determinations of the Franchise Tax Board with
33respect to the cut-off date, the date a return is received, and whether
34a return has been timely filed for purposes of this subdivision may
35not be reviewed in any administrative or judicialbegin delete proceedingend delete
36begin insert proceeding.end insert
37(B) Any disallowance of a credit claimed due to a determination
38under this subdivision, including the application of the limitation
39specified in paragraph (1), shall be treated as a mathematical error
40appearing on the return. Any amount of tax resulting from such
P8 1disallowance may be assessed by the Franchise Tax Board in the
2same manner as provided by Section 19051.
3(4) The Franchise Tax Board shall periodically provide notice
4on itsbegin insert Internetend insert Web site with respect to the amount of credit under
5this section and Section 23623 claimed on timely filed original
6returns received by the Franchise
Tax Board.
7(h) (1) The Franchise Tax Board may prescribe rules,begin delete guidelinesend delete
8begin insert guidelines,end insert or procedures necessary or appropriate to carry out the
9purposes of this section, including any guidelines regarding the
10limitation on total credits allowable under this section and Section
1123623 and guidelines necessary to avoid the application of
12paragraph (2) of subdivision (f) through split-ups, shell
13corporations, partnerships, tiered ownership structures, or
14otherwise.
15(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
16Division 3 of Title 2 of the Government Code does not apply to
17any standard, criterion, procedure, determination, rule, notice, or
18guideline established or issued by the Franchise Tax Board
19pursuant to this section.
20(i) This section shall remain in effect only until
December 1 of
21the calendar year after the year of the cut-off date, and as of that
22December 1 is repealed.
Section 23623 of the Revenue and Taxation Code, as
24added by Section 8 of Chapter 10 of the Third Extraordinary
25Session of the Statutes of 2009, is repealed.
(a) For each taxable year beginning on or after January
271, 2009, there shall be allowed as a credit against the “tax,” as
28defined in Section 23036, three thousand dollars ($3,000) for each
29net increase in qualified full-time employees, as specified in
30subdivision (c), hired during the taxable year by a qualified
31employer.
32(b) For purposes of this section:
33(1) “Acquired” includes any gift, inheritance, transfer incident
34to divorce, or any other transfer, whether or not for consideration.
35(2) “Qualified full-time employee” means:
36(A) A qualified employee who was paid qualified wages during
37the taxable year by the qualified employer for services of not less
38than an average of 35 hours per week.
39(B) A qualified employee who was a salaried employee and
40was paid compensation during the taxable year for full-time
P9 1employment, within the meaning of Section 515 of the Labor Code,
2by the qualified employer.
3(3) A “qualified employee” shall not include any of the
4following:
5(A) An employee certified as a qualified employee in an
6enterprise zone designated in accordance with Chapter 12.8
7(commencing with Section 7070) of Division 7 of Title 1 of the
8Government Code.
9(B) An employee certified as a qualified disadvantaged
10individual in a manufacturing enhancement area designated in
11accordance with Section 7073.8 of the Government Code.
12(C) An employee certified as a qualified employee in a targeted
13tax area designated in accordance with Section 7097 of the
14Government Code.
15(D) An employee certified as a qualified disadvantaged
16individual or a qualified displaced employee in a local agency
17military base recovery area (LAMBRA) designated in accordance
18with Chapter 12.97 (commencing with Section 7105) of Division
197 of Title 1 of the Government Code.
20(E) An employee whose wages are included in calculating any
21other credit allowed under this part.
22(4) “Qualified employer” means a taxpayer that, as of the last
23day of the preceding taxable year, employed a total of 20 or fewer
24employees.
25(5) “Qualified wages” means wages subject to Division 6
26(commencing with Section 13000) of the Unemployment Insurance
27Code.
28(6) “Annual full-time equivalent” means either of the following:
29(A) In the case of a full-time employee paid hourly qualified
30wages, “annual full-time equivalent” means the total number of
31hours worked for the taxpayer by the employee (not to exceed
322,000 hours per employee) divided by 2,000.
33(B) In the case of a salaried full-time employee, “annual
34full-time equivalent” means the total number of weeks worked for
35the taxpayer by the employee divided by 52.
36(c) The net increase in qualified full-time employees of a
37qualified employer shall be determined as provided by this
38subdivision:
39(1) (A) The net increase in qualified full-time employees shall
40be determined on an annual full-time equivalent basis by
P10 1subtracting from the amount determined in subparagraph (C) the
2amount determined in subparagraph (B).
3(B) The total number of qualified full-time employees employed
4in the preceding taxable year by the taxpayer and by any trade or
5business acquired by the taxpayer during the current taxable year.
6(C) The total number of full-time employees employed in the
7current taxable year by the taxpayer and by any trade or business
8acquired during the current taxable year.
9(2) For taxpayers who first commence doing business in this
10state during the taxable year, the number of full-time employees
11for the immediately preceding prior taxable year shall be zero.
12(d) In the case where the credit allowed by this section exceeds
13the “tax,” the excess may be carried over to reduce the “tax” in
14the following year, and succeeding seven years if necessary, until
15the credit is exhausted.
16(e) Any deduction otherwise allowed under this part for qualified
17wages shall not be reduced by the amount of the credit allowed
18under this section.
19(f) For purposes of this section:
20(1) All employees of the trades or businesses that are treated as
21related under either Section 267, 318, or 707 of the Internal
22Revenue Code shall be treated as employed by a single taxpayer.
23(2) In determining whether the taxpayer has first commenced
24doing business in this state during the taxable year, the provisions
25of subdivision (f) of Section 17276, without application of
26paragraph (7) of that subdivision, shall apply.
27(g) (1) (A) Credit under this section and Section 17053.80 shall
28be allowed only for credits claimed on timely filed original returns
29received by the Franchise Tax Board on or before the cut-off date
30established by the Franchise Tax Board.
31(B) For purposes of this paragraph, the cut-off date shall be the
32last day of the calendar quarter within which the Franchise Tax
33Board estimates it will have received timely filed original returns
34claiming credits under this section and Section 17053.80 that
35cumulatively total four hundred million dollars ($400,000,000)
36for all taxable years.
37(2) The date a return is received shall be determined by the
38Franchise Tax Board.
39(3) (A) The determinations of the Franchise Tax Board with
40respect to the cut-off date, the date a return is received, and whether
P11 1a return has been timely filed for purposes of this subdivision may
2not be reviewed in any administrative or judicial proceeding.
3(B) Any disallowance of a credit claimed due to a determination
4under this subdivision, including the application of the limitation
5specified in paragraph (1), shall be treated as a mathematical error
6appearing on the return. Any amount of tax resulting from such
7disallowance may be assessed by the Franchise Tax Board in the
8same manner as provided by Section 19051.
9(4) The Franchise Tax Board shall periodically provide notice
10on its Web site with respect to the amount of credit under this
11section and Section 17053.80 claimed on timely filed original
12returns received by the Franchise Tax Board.
13(h) (1) The Franchise Tax Board may prescribe rules, guidelines
14or procedures necessary or appropriate to carry out the purposes
15of this section, including any guidelines regarding the limitation
16on total credits allowable under this section and Section 17053.80
17and guidelines necessary to avoid the application of paragraph (2)
18of subdivision (f) through split-ups, shell corporations, partnerships,
19tiered ownership structures, or otherwise.
20(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
21Division 3 of Title 2 of the Government Code does not apply to
22any standard, criterion, procedure, determination, rule, notice, or
23guideline established or issued by the Franchise Tax Board
24pursuant to this section.
25(i) This section shall remain in effect only until December 1 of
26the calendar year after the year of the cut-off date, and as of that
27December 1 is repealed.
Section 23623 of the Revenue and Taxation Code, as
29added by Section 8 of Chapter 17 of the Third Extraordinary
30Session of the Statutes of 2009, is amended to read:
(a) For each taxable year beginning on or after January
321, 2009, there shall be allowed as a credit against the “tax,” as
33defined in Section 23036, three thousand dollars ($3,000) for each
34net increase in qualified full-time employees, as specified in
35subdivision (c), hired during the taxable year by a qualified
36employer.
37(b) For purposes of this section:
38(1) “Acquired” includes any gift, inheritance, transfer incident
39to divorce, or any other transfer, whether or not for consideration.
40(2) “Qualified full-time employee” means:
P12 1(A) A
qualified employee who was paid qualified wages during
2the taxable year by the qualified employer for services of not less
3than an average of 35 hours per week.
4(B) A qualified employee who was a salaried employee and
5was paid compensation during the taxable year for full-time
6employment, within the meaning of Section 515 of the Labor Code,
7by the qualified employer.
8(3) A “qualified employee” shall not include any of the
9following:
10(A) An employee certified as a qualified employee in an
11enterprise zone designated in accordance with Chapter 12.8
12(commencing with Section 7070) of Division 7 of Title 1 of the
13Government Code.
14(B) An employee certified as a qualified disadvantaged
15individual in a manufacturing enhancement area designated in
16accordance with
Section 7073.8 of the Government Code.
17(C) An employee certified as a qualified employee in a targeted
18tax area designated in accordance with Section 7097 of the
19Government Code.
20(D) An employee certified as a qualified disadvantaged
21individual or a qualified displaced employee in a local agency
22military base recovery area (LAMBRA) designated in accordance
23with Chapter 12.97 (commencing with Section 7105) of Division
247 of Title 1 of the Government Code.
25(E) An employee whose wages are included in calculating any
26other credit allowed under this part.
27(4) begin delete“Qualified end deletebegin insert(A)end insertbegin insert end insertbegin insertFor taxable years beginning on or after
28January 1, 2009, and before January 1, 2013, “qualified end insertemployer”
29means a taxpayer that, as of the last day of the preceding taxable
30year, employed a total of 20 or fewer employees.
31(B) For taxable years beginning on or after January 1, 2013,
32“qualified employer” means a taxpayer that, as of the last day of
33the preceding taxable year, employed a total of 50 or fewer
34employees.
35(5) “Qualified wages” means wages subject to Division 6
36(commencing with Section 13000) of the Unemployment Insurance
37Code.
38(6) “Annual full-time equivalent” means either of the following:
39(A) In the case of a full-time employeebegin insert who wasend insert paid hourly
40qualified wages, “annual full-time equivalent” means the total
P13 1number of hours worked for the taxpayer by the employee (not to
2exceed 2,000 hours per employee) divided by 2,000.
3(B) In the case of a salaried full-time employee, “annual
4full-time equivalent” means the total number of weeks worked for
5the taxpayer by the employee divided by 52.
6(c) The net increase in qualified full-time employees of a
7qualified employer shall be determined as provided by this
8subdivision:
9(1) (A) The net increase in qualified full-time employees shall
10be determined on an annual full-time equivalent basis by
11subtracting from the amount
determined in subparagraph (C) the
12amount determined in subparagraph (B).
13(B) The total number of qualified full-time employees employed
14in the preceding taxable year by the taxpayer and by any trade or
15business acquired by the taxpayer during the current taxable year.
16(C) The total number of full-time employees employed in the
17current taxable year by the taxpayer and by any trade or business
18acquired during the current taxable year.
19(2) For taxpayersbegin delete whoend deletebegin insert
thatend insert first commence doing business in
20this state during the taxable year, the number of full-time
21employees for the immediately preceding prior taxable year shall
22be zero.
23(d) In the case where the credit allowed by this section exceeds
24the “tax,” the excess may be carried over to reduce the “tax” in
25the following year, and succeeding seven years if necessary, until
26the credit is exhausted.
27(e) begin deleteAny end deletebegin insertA end insertdeduction otherwise allowed under this part for
28qualified wages shall not be reduced by the amount of the credit
29allowed under this section.
30(f) For purposes of this section:
31(1) All employees of the trades or businesses that are treated as
32related under either Section 267, 318, or 707 of the Internal
33Revenue Code shall be treated as employed by a single taxpayer.
34(2) In determining whether the taxpayer has first commenced
35doing business in this state during the taxable year, the provisions
36of subdivisionbegin delete (f)end deletebegin insert (g)end insert of Sectionbegin delete 17276,end deletebegin insert 24416.20,end insert without
37application of paragraph (7) of that subdivision, shall apply.
38(g) (1) (A) Credit under this section and Section 17053.80 shall
39be allowed only for credits claimed on timely filed original returns
P14 1received by the Franchise Tax Board on or before the cut-off date
2established by the Franchise Tax Board.
3(B) For purposes of this paragraph, the cut-off date shall be the
4last day of the calendar quarter within which the Franchise Tax
5Board estimates it will have received timely filed original returns
6claiming credits under this section and Section 17053.80 that
7cumulatively total four hundred million dollars ($400,000,000)
8for all taxable years.
9(2) The date a return is received shall be determined by the
10Franchise Tax Board.
11(3) (A) The determinations of the Franchise Tax Board with
12respect to the cut-off date, the date a return is received, and whether
13a return has been timely filed for purposes of this subdivision may
14not be reviewed in any administrative or judicial proceeding.
15(B) Any disallowance of a credit claimed due to a determination
16under this subdivision, including the application of the limitation
17specified in paragraph (1), shall be treated as a mathematical error
18appearing on the return. Any amount of tax resulting from such
19disallowance may be assessed by the Franchise Tax Board in the
20same manner as provided by Section 19051.
21(4) The Franchise Tax Board
shall periodically provide notice
22on itsbegin insert Internetend insert Web site with respect to the amount of credit under
23this section and Section 17053.80 claimed on timely filed original
24returns received by the Franchise Tax Board.
25(h) (1) The Franchise Tax Board may prescribe rules,begin delete guidelinesend delete
26begin insert guidelines,end insert or procedures necessary or appropriate to carry out the
27purposes of this section, including any guidelines regarding the
28limitation on total credits allowable under this section and Section
2917053.80 and guidelines necessary to avoid the application of
30paragraph (2) of subdivision (f) through split-ups, shell
31corporations, partnerships, tiered ownership structures, or
32otherwise.
33(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
34Division 3 of Title 2 of the Government Code does not apply to
35any standard, criterion, procedure, determination, rule, notice, or
36guideline established or issued by the Franchise Tax Board
37pursuant to this section.
38(i) This section shall remain in effect only
until December 1 of
39the calendar year after the year of the cut-off date, and as of that
40December 1 is repealed.
This act provides for a tax levy within the meaning
2of Article IV of the Constitution and shall go into immediate effect.
O
99