AB-231 • 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: 2026-02-02
Official status: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date: Not listed

Plain English Breakdown

The official source does not specify what constitutes a 'qualified taxpayer' beyond hiring eligible employees, and it is unclear if there are additional requirements.

Work Opportunity Credit

AB-231 creates a work opportunity credit for businesses that hire individuals who have been convicted of felonies within the past year.

What This Bill Does

Creates a new tax credit for businesses that employ certain individuals with felony convictions.
Limits the credit to 40% of qualified wages paid to eligible employees hired within one year after their conviction or release from prison.
Requires detailed goals, performance indicators, and data collection for this tax expenditure.

Who It Names or Affects

Businesses that hire individuals with felony convictions within one year of their release or conviction date.

Terms To Know

Qualified taxpayer: A business that hires eligible employees and meets other requirements set by the bill.
Qualified employee: An individual who has been convicted of a felony within one year before being hired or released from prison.

Limits and Unknowns

The credit only applies for taxable years starting in 2026 through 2030.
Details about the specific goals and performance indicators are not fully outlined in the summary text.

Bill History

2026-02-02 California Legislative Information
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
2026-01-31 California Legislative Information
Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
2025-05-23 California Legislative Information
In committee: Held under submission.
2025-05-21 California Legislative Information
Joint Rule 62(a), file notice suspended. (Page 1627.)
2025-05-21 California Legislative Information
In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-14 California Legislative Information
In committee: Hearing postponed by committee.
2025-05-06 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (May 5). Re-referred to Com. on APPR.
2025-03-10 California Legislative Information
In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
2025-02-10 California Legislative Information
Referred to Com. on REV. & TAX.
2025-01-14 California Legislative Information
From printer. May be heard in committee February 13.
2025-01-13 California Legislative Information
Read first time. To print.

Official Summary Text

AB 231, 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, 2026, and before January 1, 2031, 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

Download Bill PDF