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CA AB2205

Bill

Status

Introduced

2/19/2026

Primary Sponsor

Sharon Quirk-Silva

Click for details

Origin

State Assembly

2025-2026 Regular Session

AI Summary

  • Extends the New Employment Credit from taxable years beginning before January 1, 2026 to taxable years beginning before January 1, 2031
  • Extends the repeal date of the credit provisions from December 1, 2029 to December 1, 2034
  • Credit equals 35% of qualified wages paid to qualified full-time employees hired in designated census tracts or economic development areas, with qualified wages defined as those exceeding 150% of minimum wage but not exceeding 350% of minimum wage
  • Exempts certain industries from geographic requirements, including semiconductor manufacturing, electric airplane manufacturing, lithium production, and lithium battery manufacturing, if they meet specified federal funding or state tax criteria
  • Takes effect immediately as a tax levy and requires majority vote for passage

Legislative Description

Personal Income Tax Law: Corporation Tax Law: New Employment Credit.

Last Action

Referred to Com. on REV. & TAX.

3/9/2026

Committee Referrals

Revenue and Taxation3/9/2026

Full Bill Text

No bill text available