BILL NUMBER: SBX6 7	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senators Denham, Dutton, and Wyland

                        FEBRUARY 24, 2010

   An act to add Sections 17053.82 and 23623.1 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 7, as introduced, Denham. Income taxes: hiring credit:
veterans.
   The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws, including a
credit for an increase in qualified employees of a qualified
employer.
   This bill would, under both laws, for taxable years beginning on
and after January 1, 2010, allow a credit to a qualified taxpayer, as
defined, in an amount equal to 25% of the wages, not to exceed
$6,000, paid to each qualified veteran, as defined, by the qualified
taxpayer during the taxable year.
    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 17053.82 is added to the Revenue and Taxation
Code, to read:
   17053.82.  (a) For each taxable year beginning on or after January
1, 2010, there shall be allowed a credit in the amount specified in
subdivision (b) against the "net tax," as defined by Section 17039,
to a qualified taxpayer who employs a qualified veteran during the
taxable year.
   (b) The credit amount shall be 25 percent of the wages, not to
exceed six thousand dollars ($6,000), paid to each qualified veteran
by the qualified taxpayer during the taxable year.
   (c) For purposes of this section, "qualified taxpayer" means a
taxpayer that has a business located in California or does business
primarily in California or with Californians.
   (d) For purposes of this section, "qualified veteran" means a
member of the Armed Forces of the United States who has been
honorably discharged from service within the five calendar years
preceding employment by the qualified taxpayer, who received
unemployment compensation within California for not less than four
weeks within the 12 calendar months preceding the date of employment
by the qualified taxpayer, and who is employed by the qualified
taxpayer for at least 120 hours during the taxable year in which the
credit is claimed.
   (e) The credit allowed by this section shall be decreased by the
amount of any other credit or deduction that the qualified taxpayer
may otherwise claim pursuant to this part.
   (f) In the case where the credit allowed under this section
exceeds the "net tax," the excess may be carried over to reduce the
"net tax" in the following year, and succeeding years if necessary,
until the credit has been exhausted.
  SEC. 2.  Section 23623.1 is added to the Revenue and Taxation Code,
to read:
   23623.1.  (a) For each taxable year beginning on or after January
1, 2010, there shall be allowed a credit in the amount specified in
subdivision (b) against the "tax," as defined by Section 23036, to a
qualified taxpayer who employs a qualified veteran during the taxable
year.
   (b) The credit amount shall be 25 percent of the wages, not to
exceed six thousand dollars ($6,000), paid to each qualified veteran
by the qualified taxpayer during the taxable year.
   (c) For purposes of this section, "qualified taxpayer" means a
taxpayer that has a business located in California or does business
primarily in California or with Californians.
   (d) For purposes of this section, "qualified veteran" means a
member of the Armed Forces of the United States who has been
honorably discharged from service within the five calendar years
preceding employment by the qualified taxpayer, who received
unemployment compensation within California for not less than four
weeks within the 12 calendar months preceding the date of employment
by the qualified taxpayer, and who is employed by the qualified
taxpayer for at least 120 hours during the taxable year in which the
credit is claimed.
   (e) The credit allowed by this section shall be decreased by the
amount of any other credit or deduction that the qualified taxpayer
may otherwise claim pursuant to this part.
   (f) In the case where the credit allowed under this section
exceeds the "tax," the excess may be carried over to reduce the "tax"
in the following year, and succeeding years if necessary, until the
credit has been exhausted.
  SEC. 3.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.