California 2017-2018 Regular Session Status: In Committee

AB 656 — Income taxes: credits: unemployment insurance tax.

Last action — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. Unemployment compensation is a joint federal and state program funded by federal and state unemployment taxes paid by employers with benefits paid by the state. Tax is imposed under both laws on the first $7,000 annually paid by an employer to an employee. Existing federal law, the Federal Unemployment Tax Act, provides a credit against this tax for contributions made to certified state unemployment compensation programs, but reduces this credit when a state has a debt to the Federal Unemployment Trust Account, thus requiring employers to pay more federal unemployment tax. California has a debt to the Federal Unemployment Trust Account. This bill, under both laws, for taxable years beginning on or after January 1, 2017, would allow a credit to employers in an amount equal to the reduction in credit under the Federal Unemployment Tax Act due to the state borrowing from the Federal Unemployment Trust Account. This bill would take effect immediately as a tax levy.

Bill Text

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Action History

  1. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. In committee: Set, second hearing. Hearing canceled at the request of author.

  4. In committee: Set, first hearing. Hearing canceled at the request of author.

  5. Referred to Com. on REV. & TAX.

  6. From printer. May be heard in committee March 17.

  7. Read first time. To print.

Sponsors

  • Kiley · Primary
  • Obernolte · Cosponsor

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 120 not signed on

Sponsors (1)

  • Kiley

Co-sponsors (1)

  • Obernolte

Not signed on (120)

120 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation
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Frequently asked questions

What does AB 656 do?
The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. Unemployment compensation is a joint federal and state program funded by federal and state unemployment taxes paid by employers with benefits paid by the state. Tax is imposed under both laws on the first $7,000 annually paid by an employer to an employee. Existing federal law, the Federal Unemployment Tax Act, provides a credit against this tax for contributions made to certified state unemployment compensation programs, but reduces this credit when a state has a debt to the Federal Unemployment Trust Account, thus requiring employers to pay more federal unemployment tax. California has a debt to the Federal Unemployment Trust Account. This bill, under both laws, for taxable years beginning on or after January 1, 2017, would allow a credit to employers in an amount equal to the reduction in credit under the Federal Unemployment Tax Act due to the state borrowing from the Federal Unemployment Trust Account. This bill would take effect immediately as a tax levy.
Who sponsors AB 656?
AB 656 is sponsored by Kiley and Obernolte.
What is the current status of AB 656?
This bill died with 2017-2018 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 656?
Track AB 656 free on One Click Politics — get push/email alerts when it moves.

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