CA AB2945

Allows a tax credit equal to 35% of qualified wages paid to qualified employees for taxable years beginning January 1, 2019 through December 31, 2023, with a maximum credit of $2,100 per employee.

Applies to both personal income tax and corporation tax for qualified employers who meet federal Work Opportunity Tax Credit requirements as certified by the Employment Development Department.

Defines qualified employees as those with no functional hearing who have completed or are completing rehabilitative services through the Department of Rehabilitation, Department of Veterans Affairs, or Ticket to Work Program.

Excludes sexually oriented businesses from claiming the credit and prevents employers from claiming duplicate credits or deductions for the same wages.

Allows unused credits to carry over to the following seven years and requires the Employment Development Department to provide annual lists of qualified employers and employees to the Franchise Tax Board.