Provides corporation business tax and gross income tax credits for employers of certain persons with disabilities.
Impact
The bill mandates that qualified employees must be employed for at least 35 hours a week and earn a minimum wage of $15 per hour. However, it explicitly excludes individuals with disabilities who work as independent contractors or consultants. As part of the implementation process, employers must submit an application to the Director of the Division of Vocational Rehabilitation Services for certification of their employees as qualified. The certification process aims to be efficient, requiring a determination within 90 days, and establishes that if no determination is made within this timeframe, the application is considered approved automatically.
Summary
Assembly Bill A1477 aims to provide corporation business tax and gross income tax credits for employers who employ persons with disabilities. Specifically, the bill allows a taxpayer to receive a tax credit equal to 15% of the wages paid to a qualified employee with a disability during a taxable year, limited to a maximum of $2,000 per employee. This initiative is designed to incentivize businesses to hire individuals with disabilities, thereby promoting inclusivity in the workforce and easing the financial burden on employers.
Contention
Notable points of contention surrounding A1477 may include the adequacy of the criteria for what constitutes a qualified employee, as well as concerns about the administrative burden placed on employers in obtaining certifications. Critics may argue that while the financial incentives are beneficial, the criteria and application process could deter employers from participating. Additionally, how effectively the bill translates to actual employment opportunities for persons with disabilities will likely be scrutinized, especially concerning the defined wage thresholds and workload expectations.
An act to amend Sections 24801, 24826, 24827, 24830, 24862, and 24908 of, to repeal Section 24861 of, and to repeal and add Section 24863 of, the Public Utilities Code, relating to transportation.