BILL NUMBER: AB 2582	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Maienschein

                        FEBRUARY 19, 2016

   An act to add Sections 17053.75 and 23675 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 17053.75 is added to the Revenue and Taxation
Code, to read:
   17053.75.  (a) For taxable years beginning on or after January 1,
2017, there shall be allowed a credit against the "net tax," as
defined by Section 17039, to a qualified employer who pays a
qualified employee a wage that equals or exceeds the state minimum
wage during the taxable year.
   (b) The credit shall be in an amount that is equal to the
difference between the special minimum wage that may be paid to the
qualified employee and the state minimum wage, multiplied by the
number of hours worked by the qualified employee for the qualified
employer during the taxable year.
   (c) For purposes of this section, the following definitions shall
apply:
   (1) "Minimum wage" means the wage established by the Industrial
Welfare Commission as provided for in Chapter 1 (commencing with
Section 1171) of Part 4 of Division 2 of the Labor Code.
   (2) "Qualified employee" means an individual who may be paid a
special minimum wage pursuant to Section 214(c) of Title 29 of the
United States Code or Section 1191 or 1191.5 of the Labor Code.
   (3) (A) "Qualified employer" means a taxpayer that employs a
qualified employee in this state.
   (B) In the case of any pass-thru entity, the determination of
whether a taxpayer is a qualified employer under this section shall
be made at the entity level, and any credit under this section or
Section 23675 shall be allowed to the pass-thru entity and passed
through to the partners or shareholders in accordance with applicable
provisions of this part or Part 11 (commencing with Section 23001).
For purposes of this section, the term "pass-thru entity" means any
partnership or "S" Corporation.
   (d) A qualified employer shall do both of the following:
   (1) Obtain from the Industrial Welfare Commission a certification
that a qualified employee meets the eligibility requirements of
paragraph (2) of subdivision (c). The certification shall include the
dollar amount of special minimum wage applicable to each qualified
employee.
   (2) Retain the certification and provide a copy of it upon request
to the Franchise Tax Board.
   (e) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section. Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
  SEC. 2.  Section 23675 is added to the Revenue and Taxation Code,
to read:
   23675.  (a) For taxable years beginning on or after January 1,
2017, there shall be allowed a credit against the "tax," as defined
by Section 23036, to a qualified employer who pays a qualified
employee a wage that equals or exceeds the state minimum wage during
the taxable year.
   (b) The credit shall be in an amount that is equal to the
difference between the special minimum wage that may be paid to the
qualified employee and the state minimum wage, multiplied by the
number of hours worked by the qualified employee for the qualified
employer during the taxable year.
   (c) For purposes of this section, the following definitions shall
apply:
   (1) "Minimum wage" means the wage established by the Industrial
Welfare Commission as provided for in Chapter 1 (commencing with
Section 1171) of Part 4 of Division 2 of the Labor Code.
   (2) "Qualified employee" means an individual who may be paid a
special minimum wage pursuant to Section 214(c) of Title 29 of the
United States Code or Section 1191 or 1191.5 of the Labor Code.
   (3) (A) "Qualified employer" means a taxpayer that employs a
qualified employee in this state.
   (B) In the case of any pass-thru entity, the determination of
whether a taxpayer is a qualified taxpayer under this section shall
be made at the entity level, and any credit under this section or
Section 17053.75 shall be allowed to the pass-thru entity and passed
through to the partners in accordance with applicable provisions of
this part or Part 10 (commencing with Section 17001). For purposes of
this subparagraph, the term "pass-thru entity" means any
partnership.
   (d) A qualified employer shall do both of the following:
   (1) Obtain from the Industrial Welfare Commission a certification
that a qualified employee meets the eligibility requirements of
paragraph (2) of subdivision (c). The certification shall include the
dollar amount of special minimum wage applicable to each qualified
employee.
   (2) Retain the certification and provide a copy of it upon request
to the Franchise Tax Board.
   (e) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section. Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
  SEC. 3.  It is the intent of the Legislature to enact legislation
to comply with the requirements of Section 41.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.