AB 2582, as introduced, Maienschein. 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 on and after January 1, 2017, would allow a credit under those laws to an employer who pays a qualified employee a wage equal to or exceeding the state minimum wage during the taxable year, as provided. The bill would define a qualified employee as an individual with a disability who may be paid a special minimum wage under existing state or federal law. The credit would be allowed in an amount equal to the difference between the special minimum wage and the state minimum wage, multiplied by the hours worked by the qualified employee.
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
21, 2017, there shall be allowed a credit against the “net tax,” as
3defined by Section 17039, to a qualified employer who pays a
4qualified employee a wage that equals or exceeds the state
5minimum wage during the taxable year.
6(b) The credit shall be in an amount that is equal to the
7difference between the special minimum wage that may be paid
8to the qualified employee and the state minimum wage, multiplied
9by the number of hours worked by the qualified employee for the
10qualified employer during the taxable year.
11(c) For purposes of this section, the following definitions shall
12apply:
13(1) “Minimum wage” means the wage established by the
14Industrial Welfare Commission as provided for in Chapter 1
15(commencing with Section 1171) of Part 4 of Division 2 of the
16Labor Code.
17(2) “Qualified employee” means an individual who may be paid
18a special minimum wage pursuant to Section 214(c) of Title 29 of
19the United States Code or Section 1191 or 1191.5 of the Labor
20Code.
21(3) (A) “Qualified employer” means a taxpayer that employs
22a qualified employee in this state.
23(B) In the case of any pass-thru entity, the determination of
24whether a taxpayer is a qualified employer under this section shall
25be made at the entity level, and any credit under this section or
26Section 23675 shall be allowed to the pass-thru entity and passed
27through
to the partners or shareholders in accordance with
28applicable provisions of this part or Part 11 (commencing with
29Section 23001). For purposes of this section, the term “pass-thru
30entity” means any partnership or “S” Corporation.
31(d) A qualified employer shall do both of the following:
32(1) Obtain from the Industrial Welfare Commission a
33certification that a qualified employee meets the eligibility
34requirements of paragraph (2) of subdivision (c). The certification
35shall include the dollar amount of special minimum wage
36applicable to each qualified employee.
37(2) Retain the certification and provide a copy of it upon request
38to the Franchise Tax Board.
39(e) The Franchise Tax Board may
prescribe rules, guidelines,
40or procedures necessary or appropriate to carry out the purposes
P3 1of this section. Chapter 3.5 (commencing with Section 11340) of
2Part 1 of Division 3 of Title 2 of the Government Code does not
3apply to any standard, criterion, procedure, determination, rule,
4notice, or guideline established or issued by the Franchise Tax
5Board pursuant to this section.
Section 23675 is added to the Revenue and Taxation
7Code, to read:
(a) For taxable years beginning on or after January 1,
92017, there shall be allowed a credit against the “tax,” as defined
10by Section 23036, to a qualified employer who pays a qualified
11employee a wage that equals or exceeds the state minimum wage
12during the taxable year.
13(b) The credit shall be in an amount that is equal to the
14difference between the special minimum wage that may be paid
15to the qualified employee and the state minimum wage, multiplied
16by the number of hours worked by the qualified employee for the
17qualified employer during the taxable year.
18(c) For purposes of this section, the following definitions shall
19apply:
20(1) “Minimum wage” means the wage established by the
21Industrial Welfare Commission as provided for in Chapter 1
22(commencing with Section 1171) of Part 4 of Division 2 of the
23Labor Code.
24(2) “Qualified employee” means an individual who may be paid
25a special minimum wage pursuant to Section 214(c) of Title 29 of
26the United States Code or Section 1191 or 1191.5 of the Labor
27Code.
28(3) (A) “Qualified employer” means a taxpayer that employs
29a qualified employee in this state.
30(B) In the case of any pass-thru entity, the determination of
31whether a taxpayer is a qualified taxpayer under this section shall
32be made at the entity level, and any credit under this section or
33Section 17053.75 shall be allowed to the pass-thru entity and
34passed through to the partners in accordance with applicable
35
provisions of this part or Part 10 (commencing with Section
3617001). For purposes of this subparagraph, the term “pass-thru
37entity” means any partnership.
38(d) A qualified employer shall do both of the following:
39(1) Obtain from the Industrial Welfare Commission a
40certification that a qualified employee meets the eligibility
P4 1requirements of paragraph (2) of subdivision (c). The certification
2shall include the dollar amount of special minimum wage
3applicable to each qualified employee.
4(2) Retain the certification and provide a copy of it upon request
5to the Franchise Tax Board.
6(e) The Franchise Tax Board may prescribe rules, guidelines,
7or procedures necessary or appropriate to carry out
the purposes
8of this section. Chapter 3.5 (commencing with Section 11340) of
9Part 1 of Division 3 of Title 2 of the Government Code does not
10apply to any standard, criterion, procedure, determination, rule,
11notice, or guideline established or issued by the Franchise Tax
12Board pursuant to this section.
It is the intent of the Legislature to enact legislation
14to comply with the requirements of Section 41.
This act provides for a tax levy within the meaning of
16Article IV of the Constitution and shall go into immediate effect.
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