CA AB1973

Increases tax credit for hiring full-time employees from $3,000 to $5,000 per employee for taxable years beginning on or after January 1, 2011, under both Personal Income Tax Law and Corporation Tax Law.

Defines "qualified full-time employee" as either an ex-offender convicted of a felony or a person unemployed for 12 or more consecutive months prior to hire, excluding sex offenders and those convicted of serious or violent felonies.

Maintains "qualified employer" definition as a taxpayer employing 20 or fewer employees as of the last day of the preceding taxable year.

Establishes a $400,000,000 cumulative credit cap across all taxable years, with credits allowed only on timely filed original returns received before a cutoff date determined by the Franchise Tax Board.

Allows excess credits to carry over and reduce taxes in the following seven years until exhausted, and repeals both tax credit provisions on December 1 of the calendar year following the cutoff date.