BILL NUMBER: AB 577	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Miller

                        FEBRUARY 16, 2011

   An act  to add Sections 18153 and 24996 to the Revenue and
Taxation Code,   relating to taxation  , to take effect
immediately, tax levy  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 577, as amended, Miller. Personal income tax: 
investments in California-based companies.   corporation
taxes: capital gains: exclusion.  
   The Personal Income Tax Law and the Corporation Tax Law provide
that gain or loss upon the disposition of a capital asset is
determined by reference to the adjusted basis of that asset. 

   This bill would, for taxable years beginning on or after January
1, 2011, provide that gross income does not include any gain from the
sale or exchange of a capital asset, as defined, that is purchased
during the 2011 or 2012 calendar year, and is held for more than one
year.  
   This bill would take effect immediately as a tax levy. 

   The Personal Income Tax Law allows various credits and deductions
against the taxes imposed by that law.  
   This bill would declare that it is the intent of the Legislature
to enact tax legislation to encourage investment in California-based
companies, as provided. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 18153 is added to the 
 Revenue and Taxation Code   , to read:  
   18153.  For each taxable year beginning on or after January 1,
2011, gross income shall not include any gain from the sale or
exchange of a capital asset, as defined by Section 1221 of the
Internal Revenue Code, that is purchased during the 2011 or 2012
calendar year, and is held for more than one year. 
   SEC. 2.    Section 24996 is added to the  
Revenue and Taxation Code   , to read:  
   24996.  For each taxable year beginning on or after January 1,
2011, gross income shall not include any gain from the sale or
exchange of a capital asset, as defined by Section 1221 of the
Internal Revenue Code, that is purchased during the 2011 or 2012
calendar year, and is held for more than one year. 
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    The Legislature finds and declares
that private investment in publically traded California-based
companies is beneficial to the state and its citizens for several
reasons, including the fact that private investments in publically
traded corporations helps them expand, hire, and produce the quality
products that California is known for around the world. 

  SEC. 2.    It is the intent of the Legislature to
enact tax legislation to do the following:
   (a) Encourage investment in California-based companies that are
publicly owned and listed on the New York Stock Exchange (NYSE) or
the National Association of Securities Dealers Automated Quotations
System (NASDAQ).
   (b) Provide special incentives and lower tax rates for California
citizens to utilize on investment profits from the sale of NYSE or
NASDAQ listed businesses that are headquartered in California.
   (c) Allow taxpayers to recapture their loss of investment capital
faster by encouraging investment in a publically traded
California-based company
   (d) Support the creation of private and public sector policies
that encourage investment in publically traded California-based
businesses by the state's citizens.
   (e) Encourage the creation of special public and private
educational programs designed to promote California and the
importance of investing in California-based companies because those
investments are good for California and its citizens.