17052.55.
(a) For each taxable year beginning on or after January 1, 2002, and before January 1, 2007, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount paid or incurred during the taxable year for qualified expenses in connection with lending a qualified employee to a public school or vocational institution for the purpose of teaching mathematics or science.(b) For purposes of this section:
(1) “Qualified expenses” means both of the following:
(A) Amounts paid or incurred by the taxpayer with respect to expenses incurred by or on behalf of a taxpayer’s employee in connection with lending a qualified employee to a public school or vocational institution for the purpose of teaching mathematics or science, including, but not limited to, expenses for teaching supplies, class materials, and equipment.
(B) Expenses paid or incurred by the taxpayer for the wages of a qualified employee, to the extent those wages are allocable to teaching or preparation time.
(2) “Qualified employee” means an employee whose employment specialty includes mathematics or science.
(3) “Public school” means any high school in this state that is a part of a public school district or any community college in this state that is a part of the California Community College system.
(c)A credit shall be allowed under this section only if the teaching is certified by the public school or vocational institution receiving the teaching services. “Certified” means the issuance to the taxpayer of a service record by the public school or vocational institution, verifying receipt of the teaching services. That service record shall contain the employee’s name, dates of teaching service, number of teaching hours, and a verification signature from an authorized agent or designee of the public school or vocational institution.
(4) “Preparation time” means any time spent that is reasonably related to fulfilling the duties and responsibilities of being a teacher including, but not limited to, preparing lesson plans, grading assignments and exams, holding office hours for meeting with students or parents, or both, and commuting to and from the schoolsite.
(5) “Mathematics” means instruction designed to develop fluency in basic computational skills and an understanding of mathematical concepts and mathematical reasoning and problem solving, including, but not limited to, number sense, algebraic functions, geometry and other measurement functions, statistics, data analysis, probability analysis, and quantitative concepts. “Mathematics” includes, but is not limited to, courses in algebra I, algebra II, linear algebra, calculus, geometry, trigonometry, mathematical analysis, probability and statistics, and advanced probability and statistics.
(6) “Science” means instruction designed to develop skills and procedures for the systematic pursuit of knowledge that includes, but is not limited to, problem solving and recognition, the collection of data through observation and experiment, and the formulation and testing of hypotheses. “Science” includes, but is not limited to, courses in biology, life science, physical science, physics, chemistry, geoscience, health science, and computer science.
(c) A credit shall be allowed under this section only if the teaching is certified as follows:
(1) A high school that qualifies as a public school under paragraph 3 of subdivision (b) shall issue a service record to the taxpayer verifying receipt of the teaching services and compliance with the requirements of subdivision (f). That service record shall contain the employee’s name, dates of teaching service, number of teaching hours, verification of the employee’s eminence credential, or eligibility for the issuance thereof, a copy of the school district’s written determination that no credentialed teacher was reasonably available, and a verification signature from an authorized agent or designee of the high school.
(2) A community college that qualifies as a public school under paragraph 3 of subdivision (b) or a vocational institution shall issue a service record to the taxpayer verifying receipt of the teaching services. That service record shall contain the employee’s name, dates of teaching service, number of teaching hours, and a verification signature from an authorized agent or designee of the community college or vocational institution. That service record shall be made available to the Franchise Tax Board upon request.
(d) The credit allowed by this section is limited to expenses paid or incurred in connection with employees located in this state.
(e) No deduction may be allowed to a taxpayer for that amount of expenses for which a credit is allowed to that taxpayer under this section.
(f) No credit may be allowed under this section with respect to the lending of a qualified employee to a high school unless both of the following are true:
(1) That employee has been issued, or is eligible for the issuance of, an eminence credential pursuant to Section 44262 of the Education Code, as certified by the employing school district.
(2) That employee has filled a vacant teaching position for which no certified high school teacher was the school district has determined in writing that no teacher possessing a valid credential or authorization to teach mathematics or science was reasonably available as certified by the employing school district.
(g) In the case where 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 the succeeding seven years if necessary, until the credit is exhausted.
(h) This section shall remain in effect only until December 1, 2007, and as of that date is repealed.