Income taxes: credits: qualified first-year wages: homeless youth: foster or former foster youth.

The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, in an amount that is equal to either 40% or 25% of the amount paid or incurred by a qualified taxpayer during the taxable year for qualified first-year wages of qualified employees, depending on the amount of hours worked by the qualified employee during the first year of employment, not to exceed $2,400 per qualified employee. The bill would define "qualified employee" to mean an employee who is hired on or after January 1, 2021, and who is a homeless youth, foster youth, or former foster youth, as those terms are defined. The bill would also include additional information required for any bill authorizing a new income tax credit. This bill would take effect immediately as a tax levy.