AB 1569, as introduced, Rodriguez. Income taxes: credits: apprenticeships.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment.
This bill, for taxable years beginning on or after January 1, 2016, and before January 1, 2020, would allow a credit against the taxes imposed under those tax laws in an amount equal to $2,000 for each registered apprentice, as defined, trained by the taxpayer in 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 17053.10 is added to the Revenue and
2Taxation Code, to read:
(a) For each taxable year beginning on or after
2January 1, 2016, and before January 1, 2020, there shall be allowed
3as a credit against the “net tax,” as defined in Section 17039, in
4an amount equal to two thousand dollars ($2,000) for each
5registered apprentice trained by the taxpayer in the taxable year.
6(b) For purposes of this section, “registered apprentice” means
7a person who meets all of the following requirements:
8(1) Is 16 years of age or older, but under 25 years of age.
9(2) Has not obtained a high school diploma, and is enrolled in
10high school or a General Education Development test preparation
11 program.
12(3) Is trained by the taxpayer through an apprenticeship program
13that meets all of the following requirements:
14(A) The apprenticeship program is approved by the Chief of
15the Division of Apprenticeship Standards pursuant to Chapter 4
16(commencing with Section 3070) of Division 3 of the Labor Code.
17(B) The program is provided pursuant to an apprenticeship
18agreement as described in Section 3077 of the Labor Code.
19(C) The minimum term in hours for the program is 4,000 hours.
20(c) Upon request of the Franchise Tax Board, the taxpayer shall
21provide a copy of the apprenticeship agreement to the Franchise
22Tax Board.
23(d) In the
case where the credit allowed by this section exceeds
24the “net tax,” the excess may be carried over to reduce the “net
25tax” in the following year, and succeeding four years, if necessary,
26until the credit is exhausted.
27(e) The Franchise Tax Board may prescribe rules, guidelines,
28or procedures necessary or appropriate to carry out the purposes
29of this section.
30(f) This section shall remain in effect only until December 1,
312020, and as of that date is repealed.
Section 23667 is added to the Revenue and Taxation
33Code, to read:
(a) For each taxable year beginning on or after January
351, 2016, and before January 1, 2020, there shall be allowed as a
36credit against the “tax,” as defined in Section 23036, in an amount
37equal to two thousand dollars ($2,000) for each registered
38apprentice trained by the taxpayer in the taxable year.
39(b) For purposes of this section, “registered apprentice” means
40a person who meets all of the following requirements:
P3 1(1) Is 16 years of age or older, but under 25 years of age.
2(2) Has not obtained a high school diploma, and is enrolled in
3high school or a General Education Development test preparation
4program.
5(3) Is trained by the taxpayer through an apprenticeship program
6that meets all of the following requirements:
7(A) The apprenticeship program is approved by the Chief of
8the Division of Apprenticeship Standards pursuant to Chapter 4
9(commencing with Section 3070) of Division 3 of the Labor Code.
10(B) The program is provided pursuant to an apprenticeship
11agreement as described in Section 3077 of the Labor Code.
12(C) The minimum term in hours for the program is 4,000 hours.
13(c) Upon request of the Franchise Tax Board, the taxpayer shall
14provide a copy of the apprenticeship agreement to the Franchise
15Tax Board.
16(d) In the case where
the credit allowed by this section exceeds
17the “tax,” the excess may be carried over to reduce the “net tax”
18in the following year, and succeeding four years, if necessary, until
19the credit is exhausted.
20(e) The Franchise Tax Board may prescribe rules, guidelines,
21or procedures necessary or appropriate to carry out the purposes
22of this section.
23(f) This section shall remain in effect only until December 1,
242020, and as of that date is repealed.
This act provides for a tax levy within the meaning of
26Article IV of the Constitution and shall go into immediate effect.
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