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AB-361 Income taxes: credit: apprentices.(2017-2018)

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Date Published: 05/16/2017 04:00 AM
AB361:v97#DOCUMENT

Amended  IN  Assembly  May 15, 2017
Amended  IN  Assembly  March 27, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 361


Introduced by Assembly Member Cervantes

February 08, 2017


An act to add and repeal Sections 17053.11 and 23667 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 361, as amended, Cervantes. Income taxes: credit: apprentices.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill bill, under both laws, for taxable years beginning on or after January 1, 2018, and before January 1, 2023, would allow a credit against those taxes for each taxable year beginning on or after January 1, 2017, in an amount equal to $1,000 for each registered apprentice trained by the taxpayer and who worked 7 months or more during the taxable year, not to exceed $10,000 per taxable year per taxpayer.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17053.11 is added to the Revenue and Taxation Code, to read:

17053.11.
 (a) For each taxable year beginning on or after January 1, 2017, 2018, and before January 1, 2023, there shall be allowed a credit against the “net tax,” as defined in Section 17039, in an amount equal to one thousand dollars ($1,000) for each individual who was employed by the tax payer taxpayer as a registered apprentice in this state for seven months or more during the taxable year, not to exceed ten thousand dollars ($10,000) per taxable year per taxpayer.
(b) For purposes of this section, “registered apprentice” means an individual who is trained by the taxpayer through an apprenticeship program that meets all of the following requirements:
(1) The apprenticeship program is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.
(2) The program is provided pursuant to an apprenticeship agreement as described in Section 3077 of the Labor Code.
(3) The minimum term for the program is 2,000 hours.
(c) (1) A credit shall only be allowed under this section for the taxable year if the taxpayer obtains a copy of an apprentice certificate from the Division of Apprenticeship Standards in the Department of Industrial Relations. A certificate is required for each taxable year. The taxpayer shall provide a copy of the certificate to the Franchise Tax Board upon request.
(2) The Division of Apprenticeship Standards may adopt rules and regulations as reasonably necessary to fulfill its obligations under this section, but shall consult with the Franchise Tax Board.
(d)  The credit allowed under this section must be claimed on a timely filed original return.
(e) 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, if necessary.
(f) (1) The Franchise Tax Board may issue adopt any regulations necessary or appropriate to implement the purposes of this section.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board.
(g) Any deduction otherwise allowed under this part for the wages or salaries paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit.
(h) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.

SEC. 2.

 Section 23667 is added to the Revenue and Taxation Code, to read:

23667.
 (a) For each taxable year beginning on or after January 1, 2017, 2018, and before January 1, 2023, there shall be allowed a credit against the “tax,” as defined in Section 23036, in an amount equal to one thousand dollars ($1,000) for each individual who was employed by the taxpayer as a registered apprentice in this state for seven months or more for the taxpayer, during the taxable year, not to exceed ten thousand dollars ($10,000) per taxable year per taxpayer.
(b) For purposes of this section, “registered apprentice” means an individual who is trained by the taxpayer through an apprenticeship program that meets all of the following requirements:
(1) The apprenticeship program is approved by the Chief of the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.
(2) The program is provided pursuant to an apprenticeship agreement as described in Section 3077 of the Labor Code.
(3) The minimum term for the program is 2,000 hours.
(c) (1) A credit shall only be allowed under this section for the taxable year if the taxpayer obtains a copy of an apprentice certificate from the Division of Apprenticeship Standards in the Department of Industrial Relations. A certificate is required for each taxable year. The taxpayer shall provide a copy of the certificate to the Franchise Tax Board upon request.
(2) The Division of Apprenticeship Standards may adopt rules and regulations as reasonably necessary to fulfill its obligations under this section, but shall consult with the Franchise Tax Board.
(d) The credit allowed under this section must be claimed on a timely filed original return.
(e) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following year, if necessary.
(f) (1) The Franchise Tax Board may issue adopt any regulations necessary or appropriate to implement the purposes of this section.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board.
(g) Any deduction otherwise allowed under this part for the wages or salaries paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit.
(h) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.

SEC. 3.

 It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.

SEC. 4.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.