SB 471

Bill Subjects

Corporation Tax Personal Income Tax Law Battery Manufacturers Hiring Credit Lithium Extraction

Abstract

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill would allow a credit against those taxes to a qualified taxpayer for each taxable year beginning on or after January 1, 2023, and before January 1, 2028, except as provided, in an amount equal to the qualified wages paid to a qualified full-time employee, as defined, hired prior to January 1, 2028. The bill would define "qualified taxpayer" for this purpose to mean a person or entity that is located in a designated census tract, as defined, and is primarily engaged in the business of lithium extraction or electric battery manufacturing. The bill would define "qualified wages" as those wages paid or incurred for work performed by a qualified full-time employee within the 36-month period beginning on the first day the employee commences employment with the qualified taxpayer that exceed 150% of minimum wage but do not exceed 350% of minimum wage. The bill would require that, if a credit is allowed to a qualified taxpayer, and the employment of the qualified employee is terminated within the first 36 months of employment, the tax imposed in the year of termination is increased by the amount of the credit received, except as provided. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives 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 tax expenditure. This bill would take effect immediately as a tax levy.