Personal Income Tax Law: Corporation Tax Law: New Employment Credit.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees, as defined, within a designated census tract or economic development area in an amount equal to 35% of the qualified wages, defined in part as those wages that exceed 150% of minimum wage but do not exceed 350% of minimum wage, paid to those employees multiplied by the applicable percentage for that taxable year. That law disallows this credit for specified businesses. This bill would eliminate the requirement that the new employment be located within a designated census tract or economic development area. The bill would expand the definition of qualified wages to include that amount of wages that exceeds 100% of minimum wage but does not exceed 350% of minimum wage. The bill would expand the definition of qualified employee to include an employee that is a member of a targeted group, as defined. The bill would also expand availability of the credit to all businesses except for sexually oriented business, as defined. The bill would apply all of these changes for taxable years beginning on or after January 1, 2024. This bill would take effect immediately as a tax levy.