CA AB2630

Expands the definition of "qualified employer" for the full-time employee hiring tax credit from taxpayers with 20 or fewer employees to those with 50 or fewer employees, effective for taxable years beginning on or after January 1, 2011.

Maintains the $3,000 per-employee tax credit against personal income tax (Section 17053.80) and corporation tax (Section 23623) for net increases in qualified full-time employees hired during the taxable year.

Qualifies full-time employees must work an average of at least 35 hours per week or qualify as salaried full-time employees under Labor Code Section 515, and cannot include employees in enterprise zones, manufacturing enhancement areas, or other designated tax incentive areas.

Limits total credits under both sections to $400 million cumulatively across all taxable years, with a cut-off date established by the Franchise Tax Board based on when timely filed returns claiming these credits reach that threshold.

Allows unused credits to be carried forward for up to seven years to reduce tax liability in following years.