Income taxes: California Work Opportunity Tax Credit.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for each taxable year beginning on or after January 1, 2021, and before January 1, 2025, would allow a credit against the taxes imposed under both laws to a qualified employer, as defined, in an amount equal to that allowed under the federal Work Opportunity Tax Credit, as modified. The bill would prohibit the credit from exceeding $2,400 per qualified employee per taxable year, and would require the Employment Development Department to issue certification of qualified individuals, as specified. By expanding the crime of perjury, this bill would create a state-mandated local program. Existing law requires any bill authorizing a new tax expenditure, defined to include tax credits, to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would require the Employment Development Department to prepare a specified report in this regard. 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.