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AB 244

Quick-Service Restaurant Young Workforce Apprenticeship Program: tax credits.

2025-2026 Regular Session Introduced by Juan Alanis

AB 244 creates a state apprenticeship program for quick‑service restaurants and offers a $1,000 tax credit per registered apprentice (up to 100 per taxpayer per year) to encourage

Re-referred to Com. on L. & E.
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Bill Summary · AB 244

AB 244 — Quick‑Service Restaurant Young Workforce Apprenticeship Program; tax credits

Status: Re‑referred to Committee on Labor & Employment (3/25/2025)
Introduced: 1/14/2025 (Author: Alanis)

Purpose / Intent

AB 244 creates a state‑administered apprenticeship support program for the quick‑service (fast food) industry and establishes a temporary tax credit to encourage employers to hire and train young, entry‑level fast‑food workers. The bill seeks to expand pipelines of trained workers for quick‑service restaurants, lower employer recruitment costs, and incentivize employers — especially smaller franchisees — to participate in youth apprenticeship training.

Key provisions

  • Establishes the Quick‑Service Restaurant Young Workforce Apprenticeship Program (Labor Code, new Art. 7, §§3130–3133 et seq.), to be created and administered by the Division of Apprenticeship Standards (DAS) upon appropriation by the Legislature.

    • The program may provide grants, reimbursements, or other funding mechanisms to certified apprenticeship programs and eligible entities to support quick‑service youth apprenticeship training.
    • Funding must come from legislative appropriations; DAS distributes funds and may require recipients to demonstrate adherence to program rules and "high road" employment principles.
    • Eligible entities include registered apprenticeship sponsors and a broad set of organizations (public educational institutions, community organizations, labor organizations, private employers, workforce boards, etc.).
    • Defines “qualified apprentice” as a fast‑food employee under 22 years old, with no prior fast‑food employment, enrolled in a DAS‑certified apprenticeship.
    • Defines "participating small franchisee employer" as an operator owning fewer than 50 stores that elects to participate and complies with requirements.

  • Creates a temporary state tax credit (amendments to Personal Income Tax and Corporation Tax laws):

    • For taxable years beginning on or after Jan 1, 2026 and before Jan 1, 2031 (effectively tax years 2026–2030), qualified taxpayers may claim a $1,000 credit per registered apprentice who is employed at least 6 months.
    • Credit capped at 100 registered apprentices per qualified taxpayer per taxable year (maximum $100,000 credit per taxpayer per year).

  • Reporting, data, and information sharing:

    • The bill requires specific goals, performance indicators, and data collection related to this new tax expenditure (consistent with existing law for new tax expenditures).
    • The Franchise Tax Board (FTB) must provide information to DAS to help complete the required report; shared taxpayer information remains subject to statutory confidentiality limits. The bill notes that unlawful disclosure could be a crime and addresses related state‑mandated local program and reimbursement issues.

Who is affected

  • Quick‑service restaurant employers (especially small franchisees under 50 stores) — potential incentive to hire and train eligible young workers and to participate in certified apprenticeship programs.
  • Young workers (under 22, new to fast food) — increased access to registered apprenticeship opportunities and on‑the‑job training.
  • Division of Apprenticeship Standards and apprenticeship program sponsors — responsible for program administration, fund distribution, oversight, and reporting.
  • State tax agencies and state budget — revenue loss from tax credits and potential appropriations for program funds; administrative responsibilities for FTB and DAS.

Timeline / Procedural notes

  • Tax credit applies for taxable years beginning on/after 1/1/2026 and before 1/1/2031.
  • Program establishment by DAS is contingent on legislative appropriation.
  • Legislative history (so far): introduced 1/14/2025; printed 1/15/2025; referred to Labor & Employment and Revenue & Taxation committees 3/24/2025; amended and re‑referred to Labor & Employment 3/25/2025.

Potential impacts

  • Employer incentives may expand apprenticeship participation and reduce hiring/training costs for quick‑service restaurants, especially smaller operators.
  • State fiscal impact: reduced tax revenue from credits (up to $100,000 per qualified taxpayer annually) and potential General Fund expenditures for program grants (amount to be determined by appropriation).
  • Administrative burden: DAS and FTB will need to implement program rules and reporting systems; statutory confidentiality protections apply to shared taxpayer data.

(Notes: Bill text is partially truncated in the provided version; summary reflects available provisions.)

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

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