AB 1404, as introduced, Grove. Income taxes: credit: employees with disabilities.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning January 1, 2016, would allow a credit under those laws to an employer who employs in this state, an individual with a disability who may be paid a special minimum wage, and pays the qualified employee a wage equal to or exceeding the minimum wage during the taxable year. The credit would be allowed in an amount equal to the difference between the special minimum wage and the minimum wage.
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 17053.75 is added to the Revenue and
2Taxation Code, to read:
(a) For taxable years beginning on or after January
41, 2016, there shall be allowed a credit against the “net tax,” as
P2 1defined by Section 17039, to a qualified employer who employs
2a qualified employee and who pays the qualified employee a wage
3that equals or exceeds the minimum wage during the taxable year.
4(b) The credit shall be in an amount that is equal to the
5difference between the special minimum wage that may be paid
6to a qualified employee and the minimum wage.
7(c) For purposes of this section, the following definitions shall
8apply:
9(1) “Minimum wage” means the wage established by the
10Industrial Welfare
Commission as provided for in Chapter 1
11(commencing with Section 1171) of Part 4 of Division 2 of the
12Labor Code.
13(2) “Qualified employee” means an individual who may be paid
14a special minimum wage pursuant to Section 214(c) of Title 29 of
15the United States Code or Section 1191 or 1191.5 of the Labor
16Code.
17(3) (A) Qualified employer means a taxpayer that employs a
18qualified employee in this state.
19(B) In the case of any pass-thru entity, the determination of
20whether a taxpayer is a qualified employer under this section shall
21be made at the entity level and any credit under this section or
22Section 23675 shall be allowed to the pass-thru entity and passed
23through to the partners or shareholders in accordance with
24applicable provisions of this part or Part 11 (commencing with
25Section 23001). For
purposes of this section, the term “pass-thru
26entity” means any partnership or S corporation.
27(d) A qualified employer shall do both of the following:
28(1) Obtain from the Industrial Welfare Commission a
29certification that a qualified employee meets the eligibility
30requirements of paragraph (2) of subdivision (c).
31(2) Retain the certification and provide a copy of it upon request
32to the Franchise Tax Board.
Section 23675 is added to the Revenue and Taxation
34Code, to read:
(a) For taxable years beginning on or after January 1,
362016, there shall be allowed a credit against the “tax,” as defined
37by Section 23036, to a qualified employer who employs a qualified
38employee and who pays the qualified employee a wage that equals
39or exceeds the minimum wage during the taxable year.
P3 1(b) The credit shall be in an amount that is equal to the
2difference between the special minimum wage that may be paid
3to a qualified employee and the minimum wage.
4(c) For purposes of this section, the following definitions shall
5apply:
6(1) “Minimum wage” means the wage established by the
7Industrial Welfare Commission
as provided for in Chapter 1
8(commencing with Section 1171) of Part 4 of Division 2 of the
9Labor Code.
10(2) “Qualified employee” means an individual who may be paid
11a special minimum wage pursuant to Section 214(c) of Title 29 of
12the United States Code or Section 1191 or 1191.5 of the Labor
13Code.
14(3) (A) Qualified employer means a taxpayer that employs a
15qualified employee in this state.
16(B) In the case of any pass-thru entity, the determination of
17whether a taxpayer is a qualified taxpayer under this section shall
18be made at the entity level and any credit under this section or
19Section 17053.75 shall be allowed to the pass-thru entity and
20passed through to the partners or shareholders in accordance with
21applicable provisions of this part or Part 10 (commencing with
22Section 17001). For purposes
of this subparagraph, the term
23“pass-thru entity” means any partnership or “S” corporation.
24(d) A qualified employer shall do both of the following:
25(1) Obtain from the Industrial Welfare Commission a
26certification that a qualified employee meets the eligibility
27requirements of paragraph (2) of subdivision (c).
28(2) Retain the certification and provide a copy of it upon request
29to the Franchise Tax Board.
It is the intent of the Legislature to enact legislation
31to comply with the requirements of Section 41.
This act provides for a tax levy within the meaning of
33Article IV of the Constitution and shall go into immediate effect.
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