CA AB246

Repeals prior hiring tax credit of $3,000 per employee for taxable years beginning January 1, 2009 through December 31, 2011.

Creates new hiring tax credits effective January 1, 2012: $4,500 per net increase in full-time employees paid less than $16 per hour, and $9,100 per net increase paid $16 or more per hour.

Limits qualified employers to disabled veteran business enterprises, disadvantaged business enterprises, microbusinesses, and small businesses as defined in specified state codes, replacing previous definition of employers with 20 or fewer employees.

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

Allows unused credits to carry forward up to eight years and requires two-thirds legislative approval due to potential increased tax liability under California Constitution Article XIII A, Section 3.