17053.8.
(a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2028, there shall be allowed as a credit against the “net tax,” as defined by Section 17039, an amount equal to 40 percent of the qualified wages paid to a qualified employee, subject to paragraph (2).(2) The credit allowed pursuant to this section shall not exceed two thousand four hundred dollars ($2,400) cumulatively for each qualified employee, regardless of taxable year.
(b) For purposes of this section:
(1) “Foster youth” shall mean any of the following:
(A) A child who is the subject of a petition filed pursuant to Section 300 of the Welfare and Institutions Code, whether or not the child has been removed from their home by the juvenile court pursuant to Section 319 or 361 of the Welfare and Institutions Code.
(B) A child who is the subject of a petition filed pursuant to Section 602 of the Welfare and Institutions Code, has been removed from their home by the juvenile court pursuant to Section 727 of the Welfare and Institutions Code, and is in foster care as defined by subdivision (d) of Section 727.4 of the Welfare and Institutions Code.
(C) A dependent child of the court of an Indian tribe, consortium of tribes, or tribal
organization who is the subject of a petition filed in the tribal court pursuant to the tribal court’s jurisdiction in accordance with the tribe’s law, provided that the child would also meet one of the descriptions in Section 300 of the Welfare and Institutions Code describing when a child may be adjudged a dependent child of the juvenile court.
(2) “Qualified employee” shall mean an employee that satisfies both of the following:
(A) Has not attained the age of 25 as of the last day of the taxable year.
(B) Is currently, or was at one time, a foster youth.
(3) “Qualified wages” shall mean wages paid to a qualified employee for work completed as part of a Work Experience Education
Program pursuant to Article 7 (commencing with Section 51760) of Chapter 5 of Part 28 of Division 4 of Title 2 of the Education Code or an apprenticeship or preapprenticeship program registered with the Division of Apprenticeship Standards pursuant to Chapter 4 (commencing with Section 3070) of Division 3 of the Labor Code.
(c) (1) In the case of an employee hired on or after January 1, 2021, the credit allowed by this section shall only be allowed for wages paid during the first 12 months of the employment of the qualified employee.
(2) In the case of an employee hired before January 1, 2021, the credit allowed by this section shall only be allowed for wages paid before January 1, 2022.
(d) Any deduction otherwise allowed under this part for qualified wages shall be reduced by the amount of the
credit allowed under this section.