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SBx8 59: A WOTC For CA

As part of the Republican’s job package, Senator Dutton has introduced SBx8 59, a tax credit for new hires closely modeled on the federal Work Opportunity Tax Credit.

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

17053.76. (a) 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 equal to the sum of the following percentages of wages paid or incurred by the taxpayer during the taxable year to each qualified employee of the taxpayer:

(1) Twenty-five percent for each qualified employee employed by the qualified taxpayer for at least 120 hours, but less than 400 hours, during the taxable year.
(2) Forty percent for each qualified employee employed by the qualified taxpayer for at least 400 hours during the taxable year.
(b) The credit under subdivision (a) shall be allowed only with respect to the first six thousand dollars ($6,000) of wages paid or incurred during the taxable year to each qualified employee.
(c) For purposes of this section, all of the following definitions apply:
(1) “Qualified employee” means an individual who is any of the following, as documented by the Employment Development Department:
(A) A recipient of CalWORKs benefits.
(B) A parolee.
(C) A veteran, as defined in Section 980 of the Military and Veterans Code.
(D) Eligible for receipt of unemployment insurance benefits or currently receiving unemployment insurance benefits.
(E) A person on probation.
(2) “Qualified taxpayer” means a taxpayer that is a person or entity engaged in a trade or business within California that has its
principal office located in California.

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