AB 2205: Personal Income Tax Law: Corporation Tax Law: New Employment Credit.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees, as defined, within a designated census tract or economic development area in an amount equal to 35% of the qualified wages, defined in part as those wages that exceed 150% of minimum wage but do not exceed 350% of minimum wage, paid to those employees multiplied by the applicable percentage for that taxable year. Existing law exempts certain taxpayers from the above-described census tract or economic development area requirement, as specified, and disallows the above-described credit for specified businesses. Existing law repeals the above-described provisions on December 1, 2029.

This bill would extend the operative date for the above-described tax credits through taxable years beginning before January 1, 2031. The bill would extend the above-described repeal date to December 1, 2034.

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 also would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 14, 2026In committee: Held under submission.
2. May 14, 2026Joint Rule 62(a), file notice suspended. (Page 5030.)
3. May 13, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
4. April 28, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 27). Re-referred to Com. on APPR.
5. April 13, 2026In committee: Set, second hearing. Referred to REV. & TAX. suspense file.
6. April 6, 2026In committee: Set, first hearing. Hearing canceled at the request of author.
7. March 19, 2026Re-referred to Com. on REV. & TAX.
8. March 18, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
9. March 9, 2026Referred to Com. on REV. & TAX.
10. February 20, 2026From printer. May be heard in committee March 22.
11. February 19, 2026Read first time. To print.