California Budget Update
Both houses of the state Legislature passed
a series of majority vote budget bills today, but did not take any action on AB
103, the budget trailer bill. The
Governor now has 12 days to sign or veto the majority vote budget package. Negotiations
with the Republicans will continue to take place in hope that an agreement may be
AB 103 was amended and implements the Governor’s tax proposals including major
changes to the Enterprise Zone program presented in his May 16, 2011 revised budget. The
May revised budget, includes
the following proposed reductions to the California Enterprise Zone program:
· Credits are only available to firms that increase their level of employment
· The credit is capped at $5,000 for each new incremental full-time equivalent employee
· Credits must be claimed on the taxpayers original return
· 30-day clock on vouchers for tax years prior to 2011
· The credits will be limited to a 5-year carryforward period
The following proposed changes have been added to AB 103:
· The increase in full-time jobs will be calculated separately for each EZ.
· The entity claiming the credit will be required to provide the Franchise Tax Board (FTB) with information
to demonstrate compliance under penalty of perjury.
TALX will continue to keep you posted.
This weblog is sponsored by TALX.