17053.80.
(a) (1) For each taxable year beginning on or after January 1, 2020, and before January 1, 2025, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, to a qualified employer an amount equal to 50 30 percent of all expenditures paid or direct costs incurred for the implementation of an eligible worker training program by the qualified employer during the taxable year, subject to paragraph (2).(2) The amount of credit allowed to a qualified
employer per taxable year shall not exceed five thousand dollars ($5,000) per qualified full-time employee completing an eligible worker training program established by the qualified employer.
(b) For purposes of this section:
(1) (A) “Eligible worker training program” means a training program that upgrades, retrains, or enhances the qualified employee’s job-related skills in a manner that is necessary to adapt to new demands in the workplace due to the adoption of new technology, equipment, or innovation.
(B) An eligible worker training program shall not include a training program that is required by a federal or state entity or that is operated and administered by a federal or state entity.
(2) “Qualified employer” means an entity whose primary business is in an industry that satisfies all of the following criteria:
(A) Is an industry experiencing a shortage of workers due to a lack of technical skills in the workforce.
(B) Is an industry experiencing technological disruption requiring significant capital investment for existing businesses to remain competitive.
(C) Is an industry providing middle-skill occupation, as identified by the Employment Development Department.
(3) “Qualified full-time employee” means an individual who meets all of the following requirements:
(A) Performs at least 50 percent of their services for the qualified employer during the taxable year.
(B) Performs at least 50 percent of their services for the qualified employer in California.
(C) Has been employed by a qualified employer for at least six
months and intends to remain employed by the qualified employer for 18 months after the completion of an eligible worker training program.
(D) Is paid no more than one hundred twenty thousand dollars ($120,000) per year.
(E) Satisfies either of the following conditions:
(i) Is paid wages by the qualified employer for services not less than an average of 35 hours per week.
(ii) Is a salaried employee and was paid compensation during the taxable year for full-time employment, within the meaning of Section 515 of the Labor Code, by the qualified employer.
(c) This credit shall be in lieu of any other credit or deduction that the taxpayer may otherwise claim pursuant to this part with respect to the same item of expense.
(c)
(d) (1) The Franchise Tax Board may adopt regulations as necessary or appropriate to implement the purposes of this section, including guidelines establishing procedures for claiming the credit allowed pursuant to 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 pursuant to this section.
(d)
(e) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.