Plain English Breakdown
The phrase 'as provided' regarding felony convictions suggests specific definitions exist in the full bill but are not detailed in this summary.
Work Opportunity Tax Credit for Employers Hiring People with Felony Convictions
AB-1565 creates a state tax credit equal to 40% of wages paid to employees who have been convicted of felonies and were hired within one year of their conviction or release from prison.
What This Bill Does
- Allows a tax credit for taxable years starting on or after January 1, 2027, and before January 1, 2032.
- Sets the credit amount at 40% of qualified wages paid to eligible employees during the taxable year.
- Defines a qualified employee as someone convicted of a felony who is hired within one year of their conviction or release from prison.
- Includes specific goals, performance indicators, and data collection requirements required by existing law for new tax expenditures.
Who It Names or Affects
- Taxpayers subject to the Personal Income Tax Law in California.
- Corporations subject to the Corporation Tax Law in California.
- Individuals convicted of felonies who are hired within one year of their conviction or release from prison.
Terms To Know
- Tax credit
- An amount subtracted directly from the total tax a person or business owes to the government.
- Qualified employee
- A worker who has been convicted of a felony and was hired within one year of that conviction or their release from prison.
Limits and Unknowns
- The bill states the credit applies to felonies 'as provided' but does not list specific crimes in this summary.
- The text mentions additional information is included for tax expenditures, but does not detail those goals or indicators here.