An act to add and repeal Sections 17053.65 and 23665 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Impact
The passage of AB 1698 is expected to bolster small businesses, particularly those with fewer than 50 employees, by partially offsetting the costs associated with training employees in food safety. This could enhance public health by ensuring that more employees are certified in food handling, aligning with state health regulations. The proposed tax credits would simplify tax expenditures for small businesses, making it easier for them to invest in necessary employee training that supports compliance with established health standards.
Summary
Assembly Bill 1698, introduced by Assembly Member Alanis, aims to amend the Revenue and Taxation Code to include a tax credit for small businesses that incur expenses related to obtaining food handler cards for their employees. Specifically, the bill permits a credit of up to $250 per taxpayer per taxable year for expenses directly associated with employees obtaining these certifications. This initiative is set to be enacted for taxable years from January 1, 2026, to December 31, 2028, intending to encourage compliance with health and safety regulations while alleviating financial burdens on small businesses.
Sentiment
The sentiment surrounding AB 1698 appears to be positive among proponents who view it as a beneficial measure for small businesses. Supporters argue that it empowers smaller employers to invest in essential employee training without fear of prohibitive costs. On the other hand, there is a concern from opponents who may argue about the implications of tax credits on state revenue or the efficacy of such training in improving food safety, highlighting a mixed sentiment in discussions surrounding the bill.
Contention
A notable point of contention among the discussions about AB 1698 revolves around the scope of the tax credit and its expiration in 2030. Critics are concerned that while the bill provides immediate financial relief, it does not address the long-term sustainability of employee training funding, potentially leaving small businesses without support after 2028. Additionally, the requirement for compliance with Section 113948 of the Health and Safety Code has raised questions about its practical implications for small business owners, especially those unfamiliar with regulatory nuances.