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AB-2700 Income taxes: credits: job development.(2017-2018)

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Date Published: 05/16/2018 09:00 PM
AB2700:v96#DOCUMENT

Amended  IN  Assembly  May 16, 2018
Amended  IN  Assembly  May 07, 2018
Amended  IN  Assembly  March 21, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2700

Introduced by Assembly Members Burke and Low

February 15, 2018

An act to add and repeal Sections 17053.75, 17053.76, 23675, and 23676 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 2700, as amended, Burke. Income taxes: credits: job development.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would, under both laws for taxable years beginning on or after January 1, 2018, 2019, and before January 1, 2028, 2029, allow credits against tax in amounts equal to 30% or 15% of the qualified expenditures related to education and training programs for high demand high-demand jobs and the “Doing What Matters” program, respectively. The bill would specify data collection requirements for the credit.
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 17053.75 is added to the Revenue and Taxation Code, to read:

17053.75.
 (a) For each taxable year beginning on or after January 1, 2018, 2019, and before January 1, 2028, 2029, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to 30 percent of the costs paid or incurred by the qualified taxpayer during the taxable year for qualified expenditures.
(b) For purposes of this section:
(1) “Qualified expenditures” means the costs paid or incurred by a qualified taxpayer to create and administer an education and training program designed to prepare students for high demand high-demand jobs including, but not limited to, costs related to the development of curriculum, recruitment, training, and retention of instructors, and the creation of an application for the program on the qualified taxpayer’s Internet Web site.
(2) “Qualified taxpayer” means a person or entity engaged in a trade or business within the state that partners with a California Community College or the California State University to create and administer an education and training program designed to prepare students for high demand high-demand jobs.
(c) A credit under this section shall be allowed only on a timely filed original return of the taxpayer.
(d) The credit allowed by this section is in lieu of any deduction which the qualified taxpayer may otherwise claim pursuant to this part with respect to the same item of expense.

(d)

(e) (1) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out 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 does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.

(e)

(f) This section shall remain in effect only until December 1, 2028, 2029, and as of that date is repealed.

SEC. 2.

 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, 2018, 2019, and before January 1, 2028, 2029, there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to 15 percent of the costs paid or incurred by the qualified taxpayer during the taxable year for qualified expenditures.
(b) For purposes of this section:
(1) “Qualified expenditures” means the costs paid or incurred by a qualified taxpayer that are related to program activities for the “Doing What Matters” program, including, but not limited to, costs related to partnering with the California Community Colleges to shape and develop curriculum.
(2) “Qualified taxpayer” means a person or entity engaged in a trade or business within the state that is a “Doing What Matters” business partner within the California Community Colleges Economic and Workforce Development Division.
(c) A credit under this section shall be allowed only on a timely filed original return of the taxpayer.
(d) The credit allowed by this section is in lieu of any deduction which the qualified taxpayer may otherwise claim pursuant to this part with respect to the same item of expense.

(d)

(e) (1) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out 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 does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.

(e)

(f) This section shall remain in effect only until December 1, 2028, 2029, and as of that date is repealed.

SEC. 3.

 Section 23675 is added to the Revenue and Taxation Code, to read:

23675.
 (a) For each taxable year beginning on or after January 1, 2018, 2019, and before January 1, 2028, 2029, there shall be allowed to a qualified taxpayer a credit against the “tax,” as defined in Section 23036, in an amount equal to 30 percent of the costs paid or incurred by the qualified taxpayer during the taxable year for qualified expenditures.
(b) For purposes of this section:
(1) “Qualified expenditures” means the costs paid or incurred by a qualified taxpayer to create and administer an education and training program designed to prepare students for high demand high-demand jobs including, but not limited to, costs related to the development of curriculum, recruitment, training, and retention of instructors, and the creation of an application for the program on the qualified taxpayer’s Internet Web site.
(2) “Qualified taxpayer” means a person or entity engaged in a trade or business within the state that partners with a California Community College or the California State University to create and administer an education and training program designed to prepare students for high demand high-demand jobs.
(c) A credit under this section shall be allowed only on a timely filed original return of the taxpayer.
(d) The credit allowed by this section is in lieu of any deduction which the qualified taxpayer may otherwise claim pursuant to this part with respect to the same item of expense.

(d)

(e) (1) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out 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 does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.

(e)

(f) This section shall remain in effect only until December 1, 2028, 2029, and as of that date is repealed.

SEC. 4.

 Section 23676 is added to the Revenue and Taxation Code, to read:

23676.
 (a) For each taxable year beginning on or after January 1, 2018, 2019, and before January 1, 2028, 2029, there shall be allowed to a qualified taxpayer a credit against the “tax,” as defined in Section 23036, in an amount equal to 15 percent of the costs paid or incurred by the qualified taxpayer during the taxable year for qualified expenditures.
(b) For purposes of this section:
(1) “Qualified expenditures” means the costs paid or incurred by a qualified taxpayer that are related to program activities for the “Doing What Matters” program, including, but not limited to, costs related to partnering with the California Community Colleges to shape and develop curriculum.
(2) “Qualified taxpayer” means a person or entity engaged in a trade or business within the state that is a “Doing What Matters” business partner within the California Community Colleges Economic and Workforce Development Division.
(c) A credit under this section shall be allowed only on a timely filed original return of the taxpayer.
(d) The credit allowed by this section is in lieu of any deduction which the qualified taxpayer may otherwise claim pursuant to this part with respect to the same item of expense.

(d)

(e) (1) The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out 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 does not apply to any standard, criterion, procedure, determination, rule, notice, or guideline established or issued by the Franchise Tax Board pursuant to this section.

(e)

(f) This section shall remain in effect only until December 1, 2028, 2029, and as of that date is repealed.

SEC. 5.

 For purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.75, 17053.76, 23675, and 23676 of the Revenue and Taxation Code, as added by this act, the following data shall be collected:
(a) The number of training programs created as a result of this act.
(b) The number of students enrolled in the training programs created as a result of this act
(c) The number of students enrolled in the training programs created as a result of this act that obtain employment related to their field of study.
SEC. 5.

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

SEC. 6.

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