Plain English Breakdown
The phrase 'as provided' regarding felony convictions suggests further details exist elsewhere in the full bill text but are not included here.
Work Opportunity Credit for Employers Hiring People with Felony Convictions
AB-231 creates a tax credit equal to 40% of wages paid to employees convicted of felonies who are hired within one year of their conviction or release from prison.
What This Bill Does
- Allows qualified taxpayers to claim a credit against personal income and corporation taxes for taxable years beginning on or after January 1, 2026, and before January 1, 2031.
- Sets the credit amount at 40% of qualified wages paid or incurred to a qualified employee during the taxable year.
- Defines a qualified employee as an individual convicted of a felony who is hired no more than one year after their conviction date 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 or Corporation Tax Law who hire qualified employees.
- Individuals convicted of felonies who are hired within one year of their conviction or release from prison.
Terms To Know
- Qualified employee
- An individual convicted of a felony, as provided by the bill, who is hired no more than one year after being convicted or released from prison.
- Tax credit
- An amount that reduces the total tax owed to the government under the Personal Income Tax Law or Corporation Tax Law.
Limits and Unknowns
- The bill states the felony conviction must be 'as provided' but does not list all specific conditions in this summary.
- No effective date is listed beyond stating it takes effect immediately as a tax levy, though the credit applies to taxable years starting on or after January 1, 2026.