CA AB1596

Expands the definition of "qualified employer" under the hiring tax credit from employers with 20 or fewer employees to employers with 50 or fewer employees for taxable years beginning January 1, 2012 and later.

Maintains the $3,000 tax credit per net increase in qualified full-time employees hired, with credits calculated on an annual full-time equivalent basis.

Requires the Franchise Tax Board to report to the Legislature by January 1, 2015 on the number of employers claiming the credit, amounts utilized and carried over, and average number of employees hired during 2012-2014.

Applies to both Personal Income Tax Law and Corporation Tax Law and preserves existing rules regarding qualified employees, wage calculations, carryover provisions, and credit limitations.

Requires a two-thirds vote for passage as it results in higher taxes under California Constitution Article XIII A, Section 3.