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Another Employee Tax Credit Bill: AB 1973

Assembly Member Sandre Swanson from Oakland has introduced AB 1973 which would create a new hiring tax credit for businesses that employ ex-offenders.

SECTION 1. Section 17053.76 is added to the Revenue and Taxation Code, to read:

17053.76. (a) (1) For each taxable year beginning on or after January 1, 2010, there shall be allowed a credit against the “net tax,” as defined in Section 17039, an amount as described in paragraph (2), per each qualified employee employed by the taxpayer during the taxable year.

(2) (A) Twenty percent of the gross salary for each qualified employee employed by the taxpayer, not to exceed $5,000, for the first year of employment.
(B) Twenty percent of the gross salary for each qualified employee employed by the taxpayer, not to exceed $5,000, for the second year
of employment.

(b) The credit under subdivision (a) shall be allowed only with respect to the first year of employment if the qualified employee is employed by the taxpayer for 12 consecutive months from the date of employment and only with respect to the second year of employment if the qualified employee is employed by the taxpayer for 24 consecutive months from the date of employment.

(c) For purposes of this section, “qualified employee” means an individual who is an ex-offender employed by the taxpayer in a part-time or full-time position. “Qualified employee” shall not include an ex-offender who is required to register as a sex offender pursuant to Section 290 of the Penal Code, or the equivalent in another state or territory, under military law, or under federal law, or was convicted of a serious or violent felony.

(d) Any deduction or credit otherwise allowed under this part for the salaries paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit.

(e) If the credit allowed by 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 is exhausted.

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