California Legislature—2013–14 Regular Session

Assembly BillNo. 32


Introduced by Assembly Member John A. Pérez

December 3, 2012


An act to amend Sections 12209, 17053.57, and 23657 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 32, as introduced, John A. Pérez. Insurance taxes: income taxes: credits: community development financial institution investments.

Existing laws governing the taxation of insurers, the Personal Income Tax Law, and the Corporation Tax Law, authorize, until January 1, 2017, a credit in an amount equal to 20% of a qualified investment, as defined, made into a community development financial institution, as defined, but not to exceed, in the aggregate amount under all those laws, $10,000,000 per year.

The bill would increase the $10,000,000 limitation on the aggregate amount of qualified investments to $20,000,000.

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:

P1    1

SECTION 1.  

Section 12209 of the Revenue and Taxation Code
2 is amended to read:

3

12209.  

(a) For each year beginning on or after January 1, 1999,
4and before January 1, 2017, there shall be allowed as a credit
P2    1against the amount of tax, as defined in Section 28 of Article XIII
2of the California Constitution, an amount equal to 20 percent of
3the amount of each qualified investment made by a taxpayer during
4the taxable year into a community development financial institution
5that is certified by the Department of Insurance, California
6Organized Investment Network, or any successor thereof.

7(b) For purposes of determining any tax that may be imposed
8under Section 685 of the Insurance Code on a taxpayer not
9organized under the laws of this state, the amount of the credit
10allowed by subdivision (a) shall be treated as a tax paid under
11Section 12201 or Section 28 of Article XIII of the California
12Constitution.

13(c) (1) Notwithstanding any other provision of this part, a credit
14shall not be allowed under this section unless the California
15Organized Investment Network, or its successor within the
16Department of Insurance, certifies that the investment described
17in subdivision (a) qualifies for the credit under this section and
18certifies the total amount of the credit allocated to the taxpayer
19pursuant to this section.

20(2) A credit shall not be allowed by this section unless the
21applicant and the taxpayer provide satisfactory substantiation to,
22and in the form and manner requested by, the Department of
23Insurance, California Organized Investment Network, or any
24successor thereof, that the investment is a qualified investment as
25defined in paragraph (1) of subdivision (h).

26(3) The aggregate amount of qualified investments made by all
27taxpayers pursuant to this section, Section 17053.57, and Section
2823657 shall not exceedbegin delete ten million dollars ($10,000,000)end deletebegin insert twenty end insert
29begin insertmillion dollars ($20,000,000)end insert for each calendar year. However, if
30the aggregate amount of qualified investments made in any
31calendar year is less thanbegin delete ten million dollars ($10,000,000)end deletebegin insert twenty end insert
32begin insertmillion dollars ($20,000,000)end insert, the difference may be carried over
33to the next year, and any succeeding year during which this section
34remains in effect, and added to the aggregate amount authorized
35for those years.

36(4) If the California Organized Investment Network determines
37that total qualified investments will exceed the aggregate amount
38of qualified investments made by all taxpayers specified in
39paragraph (3), priority shall be granted to those applications that
40meet any or all of the following:

P3    1(A) Directly benefit low-income persons.

2(B) Prioritize rental housing, mortgages for community-based
3residential programs, and self-help housing ahead of single-family
4owned housing.

5(C) Represent investments from insurance companies subject
6to tax under Section 12201 of this code or under Section 28 of
7Article XIII of the California Constitution.

8(d) The community development financial institution shall do
9all of the following:

10(1) Apply to the Department of Insurance, California Organized
11Investment Network, or its successor, for certification of its status
12as a community development financial institution.

13(2) Apply to the Department of Insurance, California Organized
14Investment Network, or its successor, on behalf of the taxpayer
15for certification of the amount of the investment and the credit
16amount allocated to the taxpayer, obtain the certification, and retain
17a copy of the certification.

18(3) Obtain the taxpayer’s California company identification
19number for tax administration purposes and provide this
20information to the Department of Insurance, California Organized
21Investment Network, or its successor, with the application required
22in paragraph (2).

23(4) Provide an annual listing to the State Board of Equalization,
24in the form and manner agreed upon by the State Board of
25Equalization and the Department of Insurance, California
26 Organized Investment Network, or its successor, of the names and
27taxpayer’s California company identification numbers of any
28taxpayer who makes any withdrawal or partial withdrawal of a
29qualified investment before the expiration of 60 months from the
30date of the qualified investment.

31(5) Submit reports to the department, California Organized
32Investment Network, or any successor thereof, as required pursuant
33to subdivision (a) of Section 12939.1 of the Insurance Code.

34(e) The California Organized Investment Network may certify
35investments for the credit allowed by this section on or before
36January 1, 2015, but not after that date.

37(f) The Insurance Commissioner may develop instructions,
38procedures, and standards for applications, and for administering
39the criteria for the evaluation of applications under this section.
P4    1The Insurance Commissioner may, from time to time, issue
2regulations to implement the provisions of this section.

3(g) The Department of Insurance, California Organized
4Investment Network, or any successor thereof, shall do all of the
5following:

6(1) Accept and evaluate applications for certification from
7financial institutions and issue certificates that the applicant is a
8community development financial institution qualified to receive
9qualified investments. To receive a certificate, an applicant shall
10satisfy the Department of Insurance, California Organized
11Investment Network, or any successor thereof, that it meets the
12specific requirements to be a community development financial
13institution for this state program as defined in paragraph (2) of
14subdivision (h). The certificate may be issued for a specified period
15of time, and may include reasonable conditions to effectuate the
16intent of this section. The Insurance Commissioner may suspend
17or revoke a certification, after affording the institution notice and
18the opportunity to be heard, if the commissioner finds that an
19institution no longer meets the requirement for certification.

20(2) Accept and evaluate applications for certification from any
21community development financial institution on behalf of the
22taxpayer and issue certificates to taxpayers in an aggregate amount
23that shall not exceed the limit specified in subdivision (c). The
24certificate shall include the amount eligible to be made as an
25investment that qualifies for the credit and the total amount of the
26credit to which the taxpayer is entitled for the year. Applications
27for tax credits shall be accepted and evaluated throughout the year.

28(3) Provide an annual listing to the State Board of Equalization,
29in the form or manner agreed upon by the State Board of
30Equalization and the Department of Insurance, California
31Organized Investment Network, or its successor, of the taxpayers
32who were issued certificates, their respective National Association
33of Insurance Commissioners company number and employer’s tax
34identification number, the amount of the qualified investment made
35by each taxpayer, and the total amount of qualified investments.

36(4) Include information specified pursuant to subdivision (b) of
37Section 12939.1 of the Insurance Code in the report required by
38Section 12922 of the Insurance Code.

39(h) For purposes of this section:

P5    1(1) “Qualified investment” means an investment that is a deposit
2or loan that does not earn interest, or an equity investment, or an
3equity-like debt instrument that conforms to the specifications for
4these instruments as prescribed by the United States Department
5of the Treasury, Community Development Financial Institutions
6Fund, or its successor, or, in the absence of that prescription, as
7defined by the Insurance Commissioner. The investment must be
8equal to or greater than fifty thousand dollars ($50,000) and made
9for a minimum duration of 60 months. During that 60-month
10period, the community development financial institution shall have
11full use and control of the proceeds of the entire amount of the
12investment as well as any earnings on the investment for its
13community development purposes. The entire amount of the
14investment shall be received by the community development
15financial institution before the application for the tax credit is
16submitted. The community development financial institution shall
17use the proceeds of the investment for a purpose that is consistent
18with its community development mission and for the benefit of
19economically disadvantaged communities and low-income people
20in California.

21(2) “Community development financial institution” means a
22private financial institution located in this state that is certified by
23the Department of Insurance, California Organized Investment
24Network, or its successor, that, consistent with the legislative
25findings, declarations, and intent set forth in Section 12939 of the
26Insurance Code, has community development as its primary
27mission, and that lends in urban, rural, or reservation-based
28communities in this state. A community development financial
29institution may include a community development bank, a
30community development loan fund, a community development
31credit union, a microenterprise fund, a community development
32corporation-based lender, or a community development venture
33fund.

34(i) (1) If a qualified investment is withdrawn before the end of
35the 60th month and not reinvested in another community
36development financial institution within 60 days, there shall be
37added to the “tax,” as defined in Section 28 of Article XIII of the
38California Constitution, for the year in which the withdrawal
39occurs, the entire amount of any credit previously allowed under
40this section.

P6    1(2) If a qualified investment is reduced before the end of the
260th month, but not below fifty thousand dollars ($50,000), there
3shall be added to the “tax,” as defined in Section 28 of Article XIII
4of the California Constitution, for the taxable year in which the
5reduction occurs, an amount equal to 20 percent of the total
6reduction for the year.

7(j) In the case where the credit allowed by this section exceeds
8the “tax,” the excess may be carried over to reduce the “tax” for
9the next four years, or until the credit has been exhausted,
10whichever occurs first.

11(k) The State Board of Equalization shall, as requested by the
12Department of Insurance, California Organized Investment
13Network, or its successor, advise and assist in the administration
14of this section.

15(l) This section shall remain in effect only until December 1,
162017, and as of that date is repealed.

17

SEC. 2.  

Section 17053.57 of the Revenue and Taxation Code
18 is amended to read:

19

17053.57.  

(a) For each taxable year beginning on or after
20January 1, 1997, and before January 1, 2017, there shall be allowed
21as a credit against the amount of “net tax,” as defined in Section
2217039, an amount equal to 20 percent of the amount of each
23qualified investment made by a taxpayer during the taxable year
24into a community development financial institution that is certified
25by the Department of Insurance, California Organized Investment
26Network, or any successor thereof.

27(b) (1) Notwithstanding any other provision of this part, a credit
28shall not be allowed under this section unless the California
29Organized Investment Network, or its successor within the
30Department of Insurance, certifies that the investment described
31in subdivision (a) qualifies for the credit under this section and
32certifies the total amount of the credit allocated to the taxpayer
33pursuant to this section.

34(2) A credit shall not be allowed by this section unless the
35applicant and the taxpayer provide satisfactory substantiation to,
36and in the form and manner requested by, the Department of
37Insurance, California Organized Investment Network, or any
38successor thereof, that the investment is a qualified investment, as
39defined in paragraph (1) of subdivision (g).

P7    1(3) The aggregate amount of qualified investments made by all
2taxpayers pursuant to this section, Section 12209, and Section
323657 shall not exceedbegin delete ten million dollars ($10,000,000)end deletebegin insert end insertbegin insert twenty end insert
4begin insertmillion dollars ($20,000,000)end insert for each calendar year. However, if
5the aggregate amount of qualified investments made in any
6calendar year is less thanbegin delete ten million dollars ($10,000,000)end deletebegin insert end insertbegin insert twenty end insert
7begin insertmillion dollars ($20,000,000)end insert, the difference may be carried over
8to the next year, and any succeeding year during which this section
9remains in effect, and added to the aggregate amount authorized
10for those years.

11(4) If the California Organized Investment Network determines
12that total qualified investments will exceed the aggregate amount
13of qualified investments made by all taxpayers specified in
14paragraph (3), priority shall be granted to those applications that
15meet any or all of the following:

16(A) Directly benefit low-income persons.

17(B) Prioritize rental housing, mortgages for community-based
18residential programs, and self-help housing ahead of single-family
19owned housing.

20(C) Represent investments from insurance companies subject
21to tax under Section 12201 of this code or under Section 28 of
22Article XIII of the California Constitution.

23(c) The community development financial institution shall do
24all of the following:

25(1) Apply to the Department of Insurance, California Organized
26Investment Network, or its successor, for certification of its status
27as a community development financial institution.

28(2) Apply to the Department of Insurance, California Organized
29Investment Network, or its successor, on behalf of the taxpayer,
30for certification of the amount of the investment and the credit
31amount allocated to the taxpayer, obtain the certification, and retain
32a copy of the certification.

33(3) Obtain the taxpayer’s identification number, or in the case
34of a partnership, the taxpayer identification numbers of all the
35partners for tax administration purposes and provide this
36information to the Department of Insurance, California Organized
37Investment Network, or its successor, with the application required
38in paragraph (2).

39(4) Provide an annual listing to the Franchise Tax Board, in the
40form and manner agreed upon by the Franchise Tax Board and the
P8    1Department of Insurance, California Organized Investment
2Network, or its successor, of the names and taxpayer identification
3numbers of any taxpayer who makes any withdrawal or partial
4withdrawal of a qualified investment before the expiration of 60
5months from the date of the qualified investment.

6(5) Submit reports to the department, California Organized
7Investment Network, or any successor thereof, as required pursuant
8to subdivision (a) of Section 12939.1 of the Insurance Code.

9(d) The Insurance Commissioner may develop instructions,
10procedures, and standards for applications, and for administering
11the criteria for the evaluation of applications under this section.
12The Insurance Commissioner may, from time to time, issue
13regulations to implement the provisions of this section.

14(e) The California Organized Investment Network may certify
15investments for the credit allowed by this section on or before
16January 1, 2015, but not after that date.

17(f) The Department of Insurance, California Organized
18Investment Network, or any successor thereof, shall do all of the
19following:

20(1) Accept and evaluate applications for certification from
21financial institutions and issue certificates that the applicant is a
22community development financial institution qualified to receive
23qualified investments. To receive a certificate, an applicant shall
24satisfy the Department of Insurance, California Organized
25Investment Network, or any successor thereof, that it meets the
26specific requirements to be a community development financial
27institution for this state program as defined in paragraph (2) of
28subdivision (g). The certificate may be issued for a specified period
29of time, and may include reasonable conditions to effectuate the
30intent of this section. The Insurance Commissioner may suspend
31or revoke a certification, after affording the institution notice and
32the opportunity to be heard, if the commissioner finds that an
33institution no longer meets the requirement for certification.

34(2) Accept and evaluate applications for certification from any
35community development financial institution on behalf of the
36taxpayer and issue certificates to taxpayers in an aggregate amount
37that shall not exceed the limit specified in subdivision (b). The
38certificate shall include the amount eligible to be made as an
39investment that qualifies for the credit and the total amount of the
40credit to which the taxpayer is entitled for the taxable year.
P9    1Applications for tax credits shall be accepted and evaluated
2throughout the year.

3(3) Provide an annual listing to the Franchise Tax Board, in the
4form or manner agreed upon by the Franchise Tax Board and the
5Department of Insurance, California Organized Investment
6Network, or its successor, of the taxpayers who were issued
7certificates, their respective tax identification numbers, the amount
8of the qualified investment made by each taxpayer, and the total
9amount of qualified investments.

10(4) Include information specified pursuant to subdivision (b) of
11Section 12939.1 of the Insurance Code in the report required by
12Section 12922 of the Insurance Code.

13(g) For purposes of this section:

14(1) “Qualified investment” means an investment that is a deposit
15or loan that does not earn interest, or an equity investment, or an
16equity-like debt instrument that conforms to the specifications for
17these instruments as prescribed by the United States Department
18of the Treasury, Community Development Financial Institutions
19Fund, or its successor, or, in the absence of that prescription, as
20defined by the Insurance Commissioner. The investment must be
21equal to or greater than fifty thousand dollars ($50,000) and made
22for a minimum duration of 60 months. During that 60-month
23period, the community development financial institution shall have
24full use and control of the proceeds of the entire amount of the
25investment as well as any earnings on the investment for its
26community development purposes. The entire amount of the
27investment shall be received by the community development
28financial institution before the application for the tax credit is
29submitted. The community development financial institution shall
30use the proceeds of the investment for a purpose that is consistent
31with its community development mission and for the benefit of
32economically disadvantaged communities and low-income people
33in California.

34(2) “Community development financial institution” means a
35private financial institution located in this state that is certified by
36the Department of Insurance, California Organized Investment
37Network, or its successor, that, consistent with the legislative
38findings, declarations, and intent set forth in Section 12939 of the
39Insurance Code, has community development as its primary
40mission, and that lends in urban, rural, or reservation-based
P10   1communities in this state. A community development financial
2institution may include a community development bank, a
3community development loan fund, a community development
4credit union, a microenterprise fund, a community development
5corporation-based lender, or a community development venture
6fund.

7(h) (1) If a qualified investment is withdrawn before the end
8of the 60th month and not reinvested in another community
9development financial institution within 60 days, there shall be
10added to the “net tax,” as defined in Section 17039, for the taxable
11year in which the withdrawal occurs, the entire amount of any
12credit previously allowed under this section.

13(2) If a qualified investment is reduced before the end of the
1460th month, but not below fifty thousand dollars ($50,000), there
15shall be added to the “net tax,” as defined in Section 17039, for
16the taxable year in which the reduction occurs, an amount equal
17to 20 percent of the total reduction for the taxable year.

18(i) In the case where the credit allowed by this section exceeds
19the “net tax,” the excess may be carried over to reduce the “net
20tax” for the next four taxable years, or until the credit has been
21exhausted, whichever occurs first.

22(j) The Franchise Tax Board shall, as requested by the
23Department of Insurance, California Organized Investment
24Network, or its successor, advise and assist in the administration
25of this section.

26(k) This section shall remain in effect only until December 1,
272017, and as of that date is repealed.

28

SEC. 3.  

Section 23657 of the Revenue and Taxation Code is
29amended to read:

30

23657.  

(a) For each taxable year beginning on or after January
311, 1997, and before January 1, 2017, there shall be allowed as a
32credit against the amount of “tax,” as defined in Section 23036,
33an amount equal to 20 percent of the amount of each qualified
34investment made by a taxpayer during the taxable year into a
35community development financial institution that is certified by
36the Department of Insurance, California Organized Investment
37Network, or any successor thereof.

38(b) (1) Notwithstanding any other provision of this part, a credit
39shall not be allowed under this section unless the California
40Organized Investment Network, or its successor within the
P11   1Department of Insurance, certifies that the investment described
2in subdivision (a) qualifies for the credit under this section and
3certifies the total amount of the credit allocated to the taxpayer
4pursuant to this section.

5(2) A credit shall not be allowed by this section unless the
6applicant and the taxpayer provide satisfactory substantiation to,
7and in the form and manner requested by, the Department of
8Insurance, California Organized Investment Network, or any
9successor thereof, that the investment is a qualified investment, as
10defined in paragraph (1) of subdivision (g).

11(3) The aggregate amount of qualified investments made by all
12taxpayers pursuant to this section, Section 12209, and Section
1317053.57 shall not exceedbegin delete ten million dollars ($10,000,000)end deletebegin insert end insertbegin insert twenty end insert
14begin insertmillion dollars ($20,000,000)end insert for each calendar year. However, if
15the aggregate amount of qualified investments made in any
16calendar year is less than begin delete ten million dollars ($10,000,000)end delete begin insert end insertbegin insert twenty end insert
17begin insertmillion dollars ($20,000,000)end insert, the difference may be carried over
18to the next year, and any succeeding year during which this section
19remains in effect, and added to the aggregate amount authorized
20for those years.

21(4) If the California Organized Investment Network determines
22that total qualified investments will exceed the aggregate amount
23of qualified investments made by all taxpayers specified in
24paragraph (3), priority shall be granted to those applications that
25meet any or all of the following:

26(A) Directly benefit low-income persons.

27(B) Prioritize rental housing, mortgages for community-based
28residential programs, and self-help housing ahead of single-family
29owned housing.

30(C) Represent investments from insurance companies subject
31to tax under Section 12201 of this code or under Section 28 of
32Article XIII of the California Constitution.

33(c) The community development financial institution shall do
34all of the following:

35(1) Apply to the Department of Insurance, California Organized
36Investment Network, or its successor, for certification of its status
37as a community development financial institution.

38(2) Apply to the Department of Insurance, California Organized
39Investment Network, or its successor, on behalf of the taxpayer,
40for certification of the amount of the investment and the credit
P12   1amount allocated to the taxpayer, obtain the certification, and retain
2a copy of the certification.

3(3) Obtain the taxpayer’s identification number, or in the case
4of an “S” corporation, the taxpayer identification numbers of all
5the shareholders for tax administration purposes and provide this
6information to the Department of Insurance, California Organized
7Investment Network, or its successor, with the application required
8in paragraph (2).

9(4) Provide an annual listing to the Franchise Tax Board, in the
10form and manner agreed upon by the Franchise Tax Board and the
11Department of Insurance, California Organized Investment
12Network, or its successor, of the names and taxpayer identification
13numbers of any taxpayer who makes any withdrawal or partial
14withdrawal of a qualified investment before the expiration of 60
15months from the date of the qualified investment.

16(5) Submit reports to the department, California Organized
17Investment Network, or any successor thereof, as required pursuant
18to subdivision (a) of Section 12939.1 of the Insurance Code.

19(d) The California Organized Investment Network may certify
20investments for the credit allowed by this section on or before
21January 1, 2015, but not after that date.

22(e) The Insurance Commissioner may develop instructions,
23procedures, and standards for applications, and for administering
24the criteria for the evaluation of applications under this section.
25The Insurance Commissioner may, from time to time, issue
26regulations to implement the provisions of this section.

27(f) The Department of Insurance, California Organized
28Investment Network, or any successor thereof, shall do all of the
29following:

30(1) Accept and evaluate applications for certification from
31financial institutions and issue certificates that the applicant is a
32community development financial institution qualified to receive
33qualified investments. To receive a certificate, an applicant shall
34satisfy the Department of Insurance, California Organized
35Investment Network, or any successor thereof, that it meets the
36specific requirements to be a community development financial
37institution for this state program as defined in paragraph (2) of
38subdivision (g). The certificate may be issued for a specified period
39of time, and may include reasonable conditions to effectuate the
40intent of this section. The Insurance Commissioner may suspend
P13   1or revoke a certification, after affording the institution notice and
2the opportunity to be heard, if the commissioner finds that an
3institution no longer meets the requirement for certification.

4(2) Accept and evaluate applications for certification from any
5community development financial institution on behalf of the
6taxpayer and issue certificates to taxpayers in an aggregate amount
7that shall not exceed the limit specified in subdivision (b). The
8certificate shall include the amount eligible to be made as an
9investment that qualifies for the credit and the total amount of the
10credit to which the taxpayer is entitled for the taxable year.
11Applications for tax credits shall be accepted and evaluated
12throughout the year.

13(3) Provide an annual listing to the Franchise Tax Board, in the
14form or manner agreed upon by the Franchise Tax Board and the
15Department of Insurance, California Organized Investment
16Network, or its successor, of the taxpayers who were issued
17certificates, their respective tax identification numbers, the amount
18of the qualified investment made by each taxpayer, and the total
19amount of qualified investments.

20(4) Include information specified pursuant to subdivision (b) of
21Section 12939.1 of the Insurance Code in the report required by
22Section 12922 of the Insurance Code.

23(g) For purposes of this section:

24(1) “Qualified investment” means an investment that is a deposit
25or loan that does not earn interest, or an equity investment, or an
26equity-like debt instrument that conforms to the specifications for
27these instruments as prescribed by the United States Department
28of the Treasury, Community Development Financial Institutions
29Fund, or its successor, or, in the absence of that prescription, as
30defined by the Insurance Commissioner. The investment must be
31equal to or greater than fifty thousand dollars ($50,000) and made
32for a minimum duration of 60 months. During that 60-month
33period, the community development financial institution shall have
34full use and control of the proceeds of the entire amount of the
35investment as well as any earnings on the investment for its
36community development purposes. The entire amount of the
37investment shall be received by the community development
38financial institution before the application for the tax credit is
39submitted. The community development financial institution shall
40use the proceeds of the investment for a purpose that is consistent
P14   1with its community development mission and for the benefit of
2economically disadvantaged communities and low-income people
3in California.

4(2) “Community development financial institution” means a
5private financial institution located in this state that is certified by
6the Department of Insurance, California Organized Investment
7Network, or its successor, that, consistent with the legislative
8findings, declarations, and intent set forth in Section 12939 of the
9Insurance Code, has community development as its primary
10mission, and that lends in urban, rural, or reservation-based
11communities in this state. A community development financial
12institution may include a community development bank, a
13community development loan fund, a community development
14credit union, a microenterprise fund, a community development
15corporation-based lender, or a community development venture
16fund.

17(h) (1) If a qualified investment is withdrawn before the end
18of the 60th month and not reinvested in another community
19development financial institution within 60 days, there shall be
20added to the “tax,” as defined in Section 23036, for the taxable
21year in which the withdrawal occurs, the entire amount of any
22credit previously allowed under this section.

23(2) If a qualified investment is reduced before the end of the
2460th month, but not below fifty thousand dollars ($50,000), there
25shall be added to the “tax,” as defined in Section 23036, for the
26taxable year in which the reduction occurs, an amount equal to 20
27percent of the total reduction for the taxable year.

28(i) In the case where the credit allowed by this section exceeds
29the “tax,” the excess may be carried over to reduce the “tax” for
30the next four taxable years, or until the credit has been exhausted,
31whichever occurs first.

32(j) The Franchise Tax Board shall, as requested by the
33Department of Insurance, California Organized Investment
34Network, or its successor, advise and assist in the administration
35of this section.

36(k) This section shall remain in effect only until December 1,
372017, and as of that date is repealed.

P15   1

SEC. 4.  

This act provides for a tax levy within the meaning of
2Article IV of the Constitution and shall go into immediate effect.



O

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