17053.91.
(a) (1) For each taxable year beginning on or after January 1, 2017, there shall be allowed to a qualified small business microbusiness, as defined in Section 14837 of the Government Code, for costs paid or incurred during the taxable year with regard to compliance with state laws and regulations a credit against the “net tax,” as defined in Section 17039, in an amount
as specified in paragraph (2).(2) The credit allowed by this section shall either be five thousand dollars ($5,000) one thousand two hundred dollars ($1,200) or an amount equal to twenty-five dollars ($25) per each person-hour spent on compliance with state laws and regulations, as elected by the taxpayer. taxpayer, not to exceed one thousand two hundred dollars ($1,200).
(b) For purposes of this section:
(1)Compliance section, compliance with state laws and regulations means the adherence to laws, regulations, guidelines, and specifications relevant to the taxpayer’s business and includes, but is not limited to, preparation for, and the providing of, mandatory training for employees, modification of the business premises, and providing required information regarding employee safety.
(2)“Qualified small business” means a business that:
(A)Is independently owned and operated.
(B)Is not dominant in its field of operation.
(C)Has fewer than 100 employees.
(D)Averages annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three taxable years.
(c) 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 the six succeeding years if necessary, until the credit is exhausted.
(d) Section 41 does not apply to the credit allowed by this section.