Taxation.

(1) The Personal Income Tax Law, beginning on or after January 1, 2015, in modified conformity with federal income tax laws, allows an earned income tax credit against personal income tax and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability to an eligible individual that is equal to that portion of the earned income tax credit allowed by federal law as determined by the earned income tax credit adjustment factor, as specified. The law provides that the amount of the credit is calculated as a percentage of the eligible individual's earned income and is phased out above a specified amount as income increases and provides alternative calculation factors under specified circumstances. An "eligible individual" is defined to include specified individuals, and provides that, if a person does not have a qualifying child, he or she must be between 25 and 65 years of age at the end of the taxable year. The law requires, for taxable years beginning on or after January 1, 2016, specified earned income amounts, phaseout amounts, and the amount of disqualified income that would disallow this credit to be recomputed annually in the same manner as the recomputation of income tax brackets, as prescribed. This bill, for each taxable year beginning on or after January 1, 2018, would revise the age requirement for the definition of an "eligible individual," with regard to persons who do not have a qualifying child, to require solely that the person must have attained 18 years of age. The bill, for each taxable year beginning on or after January 1, 2018, and before January 1, 2019, would deem the California Consumer Price Index as the greater of 3.1% or the percentage change in the California Consumer Price Index for the recomputation of specified amounts. This bill, for taxable years on and after January 1, 2018, would revise the alternative calculation factors to expand the credit amount. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount to be paid as an earned income tax credit in excess of any tax liabilities. By expanding the definition of eligible individual and, thus, authorizing new payments from that account for additional amounts in excess of personal income tax liabilities, this bill would make an appropriation. (2) The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2021, a credit for hiring qualified full-time employees within a designated census tract or economic development area in an amount equal to 35% of the qualified wages paid to those employees multiplied by the applicable percentage for that taxable year. For the purposes of that credit, a qualified full-time employee is defined as an individual who meets certain requirements and satisfies at least one of several specified conditions, and the applicable percentage is calculated, in part, by comparing the total number of full-time employees employed in this state during the taxable year to the total number of full-time employees employed in this state during the base year, as defined, and qualified wages are limited to wages that exceed 150% of the minimum wage, or $10 per hour, as applicable, but do not exceed 350% of the minimum wage. This bill would extend the allowance of the credit until taxable years beginning before January 1, 2026. (3) The Personal Income Tax Law, in conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill, for taxable years beginning on or after January 1, 2018, would exclude from gross income the earned income of an eligible taxpayer that is derived from sources within Indian country in this state. The bill would define specified terms for the purposes of this exclusion. (4) The Personal Income Tax Law and the Corporation Tax Law allow a credit against the taxes imposed under those laws, for each taxable year beginning on and after January 1, 2014, and before January 1, 2025, in an amount as provided in a written agreement between the Governor's Office of Business and Economic Development (GO-Biz) and the taxpayer, agreed upon by the California Competes Tax Credit Committee, and based on specified factors, including the number of jobs the taxpayer will create or retain in the state and the amount of investment in the state by the taxpayer. Existing law provides for the allocation of credit amounts through the 2017–18 fiscal year, limits the aggregate amount of credit that may be allocated in a fiscal year, and subjects the amount to specified adjustments. This bill would extend the allowance of the credit until taxable years beginning before January 1, 2030. This bill would provide for the allocation of credit amounts of $180,000,000 for each fiscal year from 2018–19 to 2022–23, inclusive, subject to those specified adjustments. The bill would require GO-Biz, when determining whether to enter into a written agreement with a taxpayer for allocation periods beginning with the 2018–19 fiscal year, to consider the extent to which the credit will influence the taxpayer's ability, willingness, or both, to create jobs in this state that might not otherwise be created in the state by the taxpayer or any other taxpayer. This bill would require GO-Biz to additionally consider, when allocating the amount of the credit beginning with the 2018–19 fiscal year, the training opportunities offered by the taxpayer for its employees. The bill would require, on or before October 1, 2019, GO-Biz to provide to the Legislative Analyst's Office a report on the credits allocated pursuant to this section for the 2018–19 fiscal year containing specified information, including a detailed description of the methodology used to evaluate applications and allocate credits. The bill would require, on or before April 1, 2020, the Legislative Analyst's Office to provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, the budget committees of both houses, and the public with a report evaluating the GO-Biz report. This bill would also require GO-Biz to provide a member of the California Competes Tax Credit Committee, or their designated representatives, upon request of that member, with any information necessary to fulfill their duties related to the tax credit. (5) Existing law authorizes a city, county, or city and county that has entered into a reciprocal agreement, as defined, with the Franchise Tax Board, to exchange tax information, as provided. Existing law requires, upon the request of the Franchise Tax Board, each city, county, or city and county that assesses a city, county, or city and county business tax or requires a city, county, or city and county business license to annually submit to the board specified information relating to the administration of the city, county, or city and county's business tax or business license program. Existing law limits the collection and use of this information and provides that any unauthorized use of this information is punishable as a misdemeanor. Existing law repeals these provisions on January 1, 2019. This bill would delete the January 1, 2019, repeal date, thereby extending the operation of these provisions indefinitely, and would make clarifying changes to related provisions. Because these provisions make the unauthorized use of specified information punishable as a misdemeanor, this bill would impose a state-mandated local program by extending a crime. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.