Personal Income Tax Law: Corporation Tax Law: credits: fast food restaurants.

Entirely new tax credit program (Quick-Service Restaurant Affordability Act of 2025) added, creating Sections 17053.92 and 23692 of the Revenue and Taxation Code to provide a $12,000 per-location credit against personal income tax and corporate tax for qualified fast food restaurant operators.

Fiscal committee jurisdiction changed from 'no' to 'yes,' reflecting that the bill now authorizes a new tax expenditure requiring fiscal review.

Defines 'qualified taxpayer' as a franchisee or independent fast food restaurant operator with no more than 45 locations under common ownership in California, and 'qualified fast food restaurant' as one subject to Part 4.5.5 (commencing with Section 1474) of Division 2 of the Labor Code.

Credit applies to taxable years beginning on or after January 1, 2026, and before January 1, 2031. The provision sunsets on December 1, 2031. First compliance report due by December 1, 2027.

Credit amount is $12,000 per qualified fast food restaurant per taxable year. Excess credit may be carried forward for up to three additional years. Bill takes effect immediately as a tax levy under Article IV of the California Constitution.

To qualify, employers must annually demonstrate compliance with appropriate Labor Code provisions and maintain an active unemployment insurance account with the Employment Development Department. The Franchise Tax Board may request information from the Department of Industrial Relations to verify compliance.

Franchise Tax Board is authorized to prescribe rules, guidelines, and regulations to administer the credit and prevent improper claims. Standard rulemaking procedures under Government Code Chapter 3.5 are exempted for FTB guidance on this credit.

The original cannabis amendment to Section 26153 (Business and Professions Code) is retained but repositioned at the end of the bill. A minor typo was corrected: 'the a donation' changed to 'a donation.'