AB 2617 Summary

• Allows a 15% tax credit against personal income tax and corporate tax for qualified taxpayers that commence business on or after January 1, 2010, based on wages paid to qualified full-time employees.

• Defines qualified full-time employees as those working an average of at least 35 hours per week or salaried employees working full-time under California Labor Code Section 515.

• Limits qualified wages to those subject to California's Unemployment Insurance Code Division 6, with annual full-time equivalents capped at 2,000 hours per employee or 52 weeks for salaried employees.

• Allows unused tax credits to carry over to subsequent taxable years until exhausted, and preserves wage deductions otherwise allowed without reduction by the credit amount.

• Takes effect immediately as a tax levy for taxable years beginning on or after January 1, 2010.