Income and corporation taxes: credits: restaurants, bars, and hotels.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2027, would allow a credit against those taxes to a qualified taxpayer in the amount of $10,000. The bill would define a qualified taxpayer as a taxpayer that owns and operates a bar, hotel, or restaurant that meets specified requirements, including that the taxpayer temporarily ceased business operations for the bar, hotel, or restaurant for at least 30 consecutive days during the 2020 or 2021 taxable year in response to an emergency order, as defined. The bill would require a qualified taxpayer claiming the credit to declare, under penalty of perjury, that they complied with all applicable emergency orders, in the form and manner prescribed by the Franchise Tax Board. By expanding the crime of perjury, the bill would impose a state-mandated local program. This bill would include additional information required for any bill authorizing a new income tax credit. 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. This bill would take effect immediately as a tax levy.