BILL NUMBER: AB 242 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 14, 2011
INTRODUCED BY Committee on Revenue and Taxation (Perea (Chair),
Beall, Charles Calderon, Fuentes, and Gordon)
FEBRUARY 3, 2011
An act to amend Section 17220 of, and to add
Sections 17131.10, 17131.11, 17131.12, 17131.13, 17131.14, 17134.1,
17202.1, 24304, and 24343.6 to, to
the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 242, as amended, Committee on Revenue and Taxation. Income
taxes: conformity: federal health care.
The Personal Income Tax Law and the Bank and Corporation Tax Law,
among other things, allow various exclusions, deductions, and credit
in modified conformity to federal income tax laws.
This bill would provide additional modified conformity to
specified provisions of the federal Patient Protection and Affordable
Care Act and the Health Care and Education Reconciliation Act of
2010 relating to simple cafeteria plans for small businesses, health
care benefits of indian Indian tribe
members, free choice vouchers, therapeutic discovery project grants,
and student loan repayment programs , and
deduction for self-employment taxes .
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17131.10 is added to the Revenue and Taxation
Code, to read:
17131.10. (a ) For taxable years
beginning on or after January 1, 2011, Section 125(j) of the
Internal Revenue Code, relating to simple cafeteria plans for small
businesses, as added by Section 9022 of the Patient Protection and
Affordable Care Act (Public Law 111-148), shall apply, except as
otherwise provided.
(b) For taxable years beginning on or after January 1, 2014,
Section 125(f) of the Internal Revenue Code, relating to qualified
benefits defined, as amended by Section 1515 of the Patient
Protection and Affordable Care Act (Public Law 111-148), shall apply,
except as otherwise provided.
SEC. 2. Section 17131.11 is added to the Revenue and Taxation
Code, to read:
17131.11. For taxable years beginning on or after January 1,
2010, Section 137 of the Internal Revenue Code, relating to adoption
assistance programs, as amended by Section 10909(a)(2) of the Patient
Protection and Affordable Care Act (Public Law 111-148), shall
apply, except as otherwise provided.
SEC. 3. Section 17131.12 is added to the Revenue and Taxation
Code, to read:
17131.12. (a) Section 139D of the Internal Revenue Code, relating
to Indian health care benefits, as added by Section 9021 of the
Patient Protection and Affordable Care Act (Public Law 111-148),
shall apply, except as otherwise provided.
(b) This section shall apply to benefits and coverage provided
after March 23, 2010.
(c) No inference shall be made with respect to the enactment the
act adding this section with respect to the exclusion from gross
income of benefits provided by either an Indian tribe or tribal
organization that are not within the scope of this section or were
provided prior to March 23, 2010.
(c) This section shall not be construed to create an inference
with respect to the exclusion from gross income of either of the
following:
(1) Benefits provided by an Indian tribe or tribal organization
that are not within the scope of this section.
(2) Benefits provided prior to the effective date of the act
adding this section.
SEC. 4. Section 17131.13 is added to the Revenue and Taxation
Code, to read:
17131.13. For taxable years beginning
vouchers provided on or after January 1, 2014, Section 139D of
the Internal Revenue Code, relating to free choice vouchers, as added
by Section 10108(f) of the Patient Protection and Affordable Care
Act (Public Law 111-148), shall apply, except as otherwise provided.
SEC. 5. Section 17131.14 is added to the Revenue and Taxation
Code, to read:
17131.14. (a) Any grant made in any year by the Secretary of the
Treasury under Section 9023(e) of the Patient Protection and
Affordable Care Act (Public Law 111-148), to a person that places in
service qualified therapeutic discovery project property, shall not
be includable in the gross income or the alternative minimum taxable
income of the taxpayer.
(b) This section shall apply in the same manner and to the same
periods as the provisions of federal law referred to in
subdivision (a) apply Section 48D(f)(3) of the
Internal Revenue Code, as added by Section 9023(a) of the
Patient Protection and Affordable Care Act (Public Law 111-148),
relating to treatment of grants, applies for federal purposes,
except as otherwise provided.
SEC. 6. Section 17134.1 is added to the Revenue and Taxation Code,
to read:
17134.1. For taxable years beginning on or after January 1, 2010,
Section 108(f)(4) of the Internal Revenue Code, relating to payments
under the National Health Service Corps loan repayment program and
certain state loan repayment programs, as amended by Section 10908 of
the Patient Protection and Affordable Care Act (Public Law 111-148),
shall apply, except as otherwise provided.
SEC. 7. Section 17220 of the Revenue and
Taxation Code is amended to read:
17220. (a) Section 164(a)(3) of the Internal Revenue Code,
relating to the deductibility of state, local, and foreign income,
war profits, and excess profits taxes, shall not apply.
(b) Section 164(b)(5) of the Internal Revenue Code, relating to
general sales taxes, shall not apply.
(c) In addition to the provisions of Section 164(c) of the
Internal Revenue Code, relating to deduction denied in case of
certain taxes, no deduction shall be allowed for any tax imposed
under Chapter 10.5 (commencing with Section 17935), Chapter 10.6
(commencing with Section 17941), or Chapter 10.7 (commencing with
Section 17948) of this part or under Part 11 (commencing with Section
23001).
(d) For taxable years beginning on or after January 1, 2013,
Section 164(f) of the Internal Revenue Code, relating to deduction
for one-half of self-employment taxes, as amended by Sections 9015(b)
and 10906(b) of the Patient Protection and Affordable Care Act
(Public Law 111-148), shall apply, except as otherwise provided.
SEC. 7. Section 17202.1 is added to the
Revenue and Taxation Code , to read:
17202.1. For taxable years beginning on or after January 1, 2014,
Section 162(a) of the Internal Revenue Code, as amended by Section
10108(g) of the Patient Protection and Affordable Care Act (Public
Law 111-148), shall apply, except as otherwise provided.
SEC. 8. Section 24304 is added to the
Revenue and Taxation Code , to read:
24304. (a) Any grant made in any year by the Secretary of the
Treasury under Section 9023(e) of the Patient Protection and
Affordable Care Act (Public Law 111-148), to a person that places in
service qualified therapeutic discovery project property, shall not
be includable in the gross income or the alternative minimum taxable
income of the taxpayer.
(b) This section shall apply in the same manner and to the same
periods as Section 48D(f)(3) of the Internal Revenue Code, as added
by Section 9023(a) of the Patient Protection and Affordable Care Act
(Public Law 111-148), relating to treatment of grants, applies for
federal purposes, except as otherwise provided.
SEC. 8. SEC. 9. Section 24343.6 is
added to the Revenue and Taxation Code, to read:
24343.6. For taxable years beginning
vouchers provided on or after January 1, 2014, Section 162(a)
of the Internal Revenue Code, as amended by Section 10108(g) of the
Patient Protection and Affordable Care Act (Public Law 111-148),
shall apply, except as otherwise provided.
SEC. 9. SEC. 10. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.