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

The Personal Income Tax Law and Corporation Tax Law allow various credits against the taxes imposed by that law, including a credit for hiring qualified full-time employees within a designated census tract or economic development area, as provided. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, and before January 1, 2028, 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. The bill would provide that the credit amount is 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, 2023, and who is a foster youth or former foster youth, as those terms are defined. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. The bill would also include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.