AB 2164, as introduced, Patterson. Income taxes: credit: education and training.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would, for taxable years beginning on or after January 1, 2014, and before January 1, 2019, allow a credit under both laws in an amount equal to 50% of the costs paid or incurred by a taxpayer for qualified education and training, as defined, of a qualified employee, as specified.
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:
This act shall be known and may be cited as the
2California Career Advancement Tax Credit.
Section 17053.13 is added to the Revenue and Taxation
2Code, to read:
(a) (1) For taxable years beginning on or after
4January 1, 2014, and before January 1, 2019, there shall be allowed
5as a credit against the “net tax,” as defined in Section 17039, an
6amount equal to 50 percent of the costs paid or incurred by the
7taxpayer during the taxable year for the qualified education and
8training of a qualified employee, subject to paragraph (2).
9(2) The credit allowed by this section shall not exceed two
10thousand five hundred dollars ($2,500) per qualified employee per
11taxable year.
12(b) For purposes of this section:
13(1) “Qualified education and training” means either of the
14following:
15(A) Education or training provided to the taxpayer’s qualified
16employees to maintain or improve a skill required for the taxpayer’s
17trade or business.
18(B) Education and training provided to the taxpayer’s qualified
19employees in order to comply with the express requirements
20imposed by the taxpayer or by laws or regulations as a condition
21of the qualified employee’s retention of an established employment
22relationship with the taxpayer, qualified employee status, or rate
23of compensation.
24(2) “Qualified employee” means an employee of the taxpayer
25employed within California during the taxable year.
26(c) In the case where the credit allowed by this section exceeds
27the “net tax,”
the excess may be carried over to reduce the “net
28tax” in the following year, and succeeding years if necessary, until
29the credit is exhausted.
30(d) A deduction otherwise allowed under this part for any
31amount paid or incurred by the qualified taxpayer upon which the
32credit is based shall be reduced by the amount of the credit allowed
33by this section.
34(e) Credit under this section shall be allowed only for credits
35claimed on a timely filed original return of the qualified taxpayer.
36(f) This section shall remain in effect only until December 1,
372019, and as of that date is repealed.
Section 23623.2 is added to the Revenue and Taxation
39Code, to read:
(a) (1) For taxable years beginning on or after
2January 1, 2014, and before January 1, 2019, there shall be allowed
3as a credit against the “tax,” as defined in Section 23036, an amount
4equal to 50 percent of the costs paid or incurred by the taxpayer
5during the taxable year for the qualified education and training of
6a qualified employee, subject to paragraph (2).
7(2) The credit allowed by this section shall not exceed two
8thousand five hundred dollars ($2,500) per qualified employee per
9taxable year.
10(b) For purposes of this section:
11(1) “Qualified
education and training” means education or
12training provided to the taxpayer’s qualified employees to maintain
13or improve a skill required for the taxpayer’s trade or business.
14(2) “Qualified employee” means an employee of the taxpayer
15employed within California during the taxable year.
16(c) In the case where the credit allowed by this section exceeds
17the “tax,” the excess may be carried over to reduce the “tax” in
18the following year, and succeeding years if necessary, until the
19credit is exhausted.
20(d) A deduction otherwise allowed under this part for any
21amount paid or incurred by the qualified taxpayer upon which the
22credit is based shall be reduced by the amount of the credit allowed
23by this section.
24(e) Credit under this
section shall be allowed only for credits
25claimed on a timely filed original return of the qualified taxpayer.
26(f) This section shall remain in effect only until December 1,
272019, and as of that date is repealed.
This act provides for a tax levy within the meaning of
29Article IV of the Constitution and shall go into immediate effect.
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