AB-1565 • 2026

Income and corporation taxes: credits: work opportunity credit.

Crime Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Ta
Last action: 2026-04-27
Official status: In committee: Set, second hearing. Held under submission.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Income and corporation taxes: credits: work opportunity credit.

AB 1565, as introduced, Ta.

What This Bill Does

AB 1565, as introduced, Ta.
Income and corporation taxes: credits: work opportunity credit.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a credit against those taxes to a qualified taxpayer in an amount equal to 40% of the qualified wages paid or incurred to a qualified employee employed during the taxable year.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-04-27 California Legislative Information
In committee: Set, second hearing. Held under submission.
2026-03-16 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2026-02-02 California Legislative Information
Referred to Com. on REV. & TAX.
2026-01-13 California Legislative Information
From printer. May be heard in committee February 12.
2026-01-12 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1565, as introduced, Ta.
Income and corporation taxes: credits: work opportunity credit.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a credit against those taxes to a qualified taxpayer in an amount equal to 40% of the qualified wages paid or incurred to a qualified employee employed during the taxable year. The bill would define a qualified employee for this purpose to mean an individual that, among other things, has been convicted of a felony, as provided, and has a hiring date not more than one year after the date the individual was convicted or was released from prison.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will
achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new income tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

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