WeVote
Log In

Bill

Bill

AB 1565

Income and corporation taxes: credits: work opportunity credit.

2025-2026 Regular Session Introduced by Tri Ta

AB 1565 modifies California's work opportunity tax credit for employers hiring disadvantaged workers, currently under committee review to determine fiscal and economic impacts.

In committee: Set, first hearing. Referred to suspense file.
#incomeandcorporationtaxes #credits #workopportunitycredit
0
WeVote Research Nonpartisan
Bill Summary · AB 1565

Legislative bill overview

AB 1565 proposes modifications to California's work opportunity tax credit, a state income and corporation tax incentive designed to encourage employers to hire workers from specified disadvantaged groups. The bill is currently in early legislative stages, having been referred to the Revenue and Taxation Committee with a scheduled hearing and subsequent placement on the suspense file for budget-related review.

Why is this important

Work opportunity credits directly affect state tax revenue and employer hiring incentives, making this relevant to both business competitiveness and workforce development. California's version of this federal tax credit influences labor market participation for vulnerable populations and has measurable fiscal impacts on the state budget, which is why it's subject to suspense file review.

Potential points of contention

  • Fiscal cost vs. economic benefit trade-off: Expanding or modifying the credit increases foregone tax revenue; legislators must weigh whether employment gains justify the cost
  • Target group eligibility and effectiveness: Defining which worker populations qualify and whether the credit actually changes hiring behavior (or simply subsidizes hiring that would occur anyway) remains debated
  • Administrative burden: Employers must certify worker eligibility; unclear criteria or compliance requirements can reduce participation or create compliance costs

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.