Income taxes: credits: COVID-19 supplemental paid sick leave.

(1) Existing law, the Healthy Workplaces, Healthy Families Act of 2014, entitles an employee who works in California for the same employer for 30 or more days within a year from the commencement of employment to paid sick days. Existing law, until September 30, 2022, provides for COVID-19 supplemental paid sick leave for covered employees, in-home supportive service providers, and waiver personal care service providers who are unable to work due to certain reasons related to COVID-19, and requires specified employers to compensate the covered employees and providers at specified rates, as provided. The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that specified payments required to be made to taxpayers, including refunds, are to be paid from that account. This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2023, would allow a credit against the taxes imposed by those laws to specified employers for the amount paid by the employer as COVID-19 supplemental paid sick leave benefits. The bill would require amounts of this credit in excess of the tax liability of a nonprofit organization that is authorized to claim the credit to be paid to the nonprofit organization from the Tax Relief and Refund Account. The bill would require the refunded amount to be used only by the nonprofit organization to make its employer contributions to the Unemployment Fund, as specified. By authorizing new refund payments to be paid from the continuously appropriated Tax Relief and Refund Account, this bill would make an appropriation. (2) Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure.