AB 943, as introduced, Nestande. Income taxes: credits: qualified scholarships: qualified programs.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by that law.
This bill, for taxable years beginning on or after January 1, 2013, and before January 1, 2017, would allow a credit against the taxes imposed under those laws for monetary contributions to nonprofit organizations to fund qualified scholarships for specified pupils to attend private schools, as defined, or to fund grants for qualified programs relating to science, technology, engineering, and math literacy, and the arts for public and charter schools, as defined.
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 17053.83 is added to the Revenue and
2Taxation Code, to read:
(a) For each taxable year beginning on or after
2January 1, 2013, and before January 1, 2017, there shall be allowed
3as a credit against the “net tax,” as defined in Section 17039, an
4amount equal to the monetary amount contributed by a taxpayer
5to a nonprofit organization to fund a qualified scholarship. The
6credit shall not exceed 50 percent of the “net tax” for the taxable
7year.
8(b) For purposes of this section:
9(1) “Nonprofit organization” means an organization that is
10tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
11(2) “Private school” means a person, firm, association,
12partnership, or
corporation offering or conducting private school
13instruction on the elementary or high school level.
14(3) “Qualified scholarship” means a scholarship for a pupil with
15special needs or a pupil in foster care to attend a private school
16that meets all of the following:
17(A) The pupil remains eligible for the scholarship until he or
18she graduates from high school or leaves the foster care program.
19(B) The scholarship may be used at any private school if the
20pupil’s residence changes and attendance at a particular private
21school is not feasible.
22(C) Eligibility for the scholarship shall be based on family
23income, not to exceed 250 percent of the federal poverty guidelines.
24A partial scholarship may be granted if the family income of a
25pupil that was awarded a
scholarship in the previous year increases
26in the following year.
27(c) A nonprofit organization that provides qualified scholarships
28shall retain data on the educational improvement of scholarship
29recipients so that the efficacy of the qualified scholarship program
30may be evaluated.
31(d) The aggregate amount of credit allowed to all taxpayers
32under this section and Section 23684 shall not exceed fifty million
33dollars ($50,000,000) for all taxable years.
34(e) In the case where the credit allowed by this section exceeds
35the “net tax,” the excess may be carried over to reduce the “net
36tax” in the following year, and the succeeding years if necessary,
37until the credit is exhausted.
38(f) The credit under this section shall be in addition to any
39deduction under
this part to which the taxpayer may be entitled.
P3 1(g) (1) The Franchise Tax Board shall promulgate rules and
2regulations as necessary or appropriate to implement this section.
3(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
4Division 3 of Title 2 of the Government Code does not apply to
5any standard, criterion, procedure, determination, rule, notice, or
6guideline established or issued by the Franchise Tax Board
7pursuant to this section.
8(h) This section shall remain in effect only until December 1,
92017, and as of that date is repealed.
Section 17053.84 is added to the Revenue and Taxation
11Code, to read:
(a) For each taxable year beginning on or after
13January 1, 2013, and before January 1, 2017, there shall be allowed
14as a credit against the “net tax,” as defined in Section 17039, an
15amount equal to the monetary amount contributed by a taxpayer
16to a nonprofit organization to provide a grant for a qualified
17program. The credit shall not exceed 50 percent of the “net tax”
18for the taxable year.
19(b) For purposes of this section:
20(1) “Charter school” means a school established pursuant to
21Part 26.8 (commencing with Section 47600) of Title 2 of the
22Education Code providing elementary or high school education.
23(2) “Nonprofit organization” means an organization that is
24tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
25(3) “Public school” means any day or evening elementary school
26and any day or evening high school established by statute, or by
27municipal or district authority.
28(4) “Qualified program” means a program in science,
29technology, engineering, and math literacy, and the arts for public
30and charter schools that is both of the following:
31(A) An advanced academic or similar program that is not part
32of the regular program of a public or charter school, but enhances
33the curriculum of the public or charter school.
34(B) A cocurricular activity for pupils that is an optional,
35noncredit educational
activity that supplements education,
36including, but not limited to, gifted programs, visual and
37performing arts, music arts, academic clubs, and educational field
38trips.
39(c) A grant provided by the nonprofit organization for a qualified
40program shall be provided to a specific public or charter school,
P4 1or more than one school, of the nonprofit organization’s choosing.
2A grant shall include guidelines that detail what specific programs
3may be funded by the grant moneys and shall prohibit the use of
4grant moneys for administration or overhead costs.
5(d) The aggregate amount of credit allowed to all taxpayers
6under this section and Section 23683 shall not exceed fifty million
7dollars ($50,000,000) for all taxable years.
8(e) In the case where the credit allowed by this section exceeds
9the “net tax,” the excess may be
carried over to reduce the “net
10tax” in the following year, and the succeeding years if necessary,
11until the credit is exhausted.
12(f) The credit under this section shall be in addition to any
13deduction under this part to which the taxpayer may be entitled.
14(g) (1) The Franchise Tax Board shall promulgate rules and
15regulations as necessary or appropriate to implement this section.
16(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
17Division 3 of Title 2 of the Government Code does not apply to
18any standard, criterion, procedure, determination, rule, notice, or
19guideline established or issued by the Franchise Tax Board
20pursuant to this section.
21(h) This section shall remain in effect only until December 1,
222017, and as of that date is repealed.
Section 23683 is added to the Revenue and Taxation
24Code, to read:
(a) For each taxable year beginning on or after January
261, 2013, and before January 1, 2017, there shall be allowed as a
27credit against the “tax,” as defined in Section 23036, an amount
28equal to the monetary amount contributed by a taxpayer to a
29nonprofit organization to fund a qualified scholarship. The credit
30shall not exceed 50 percent of the “tax” for the taxable year.
31(b) For purposes of this section:
32(1) “Nonprofit organization” means an organization that is
33tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
34(2) “Private school” means a person, firm, association,
35partnership, or corporation offering
or conducting private school
36instruction on the elementary or high school level.
37(3) “Qualified scholarship” means a scholarship for a pupil with
38special needs, a pupil in foster care, or a pupil from a low-income
39family, to attend a private school that meets all of the following:
P5 1(A) The pupil remains eligible for the scholarship until he or
2she graduates from high school or leaves the foster care program.
3(B) The scholarship may be used at any private school if the
4pupil’s residence changes and attendance at a particular private
5school is not feasible.
6(C) Eligibility for the scholarship shall be based on family
7income, not to exceed 250 percent of the federal poverty guidelines.
8A partial scholarship may be granted if the family income of a
9pupil
that was awarded a scholarship in the previous year increases
10in the following year.
11(c) A nonprofit organization that provides qualified scholarships
12shall retain data on the educational improvement of scholarship
13recipients so that the efficacy of the qualified scholarship program
14may be evaluated.
15(d) The aggregate amount of credit allowed to all taxpayers
16under this section and Section 23684 shall not exceed fifty million
17dollars ($50,000,000) for all taxable years.
18(e) In the case where the credit allowed by this section exceeds
19the “tax,” the excess may be carried over to reduce the “tax” in
20the following year, and the succeeding years if necessary, until the
21credit is exhausted.
22(f) The credit under this section shall be in addition to any
23
deduction under this part to which the taxpayer may be entitled.
24(g) (1) The Franchise Tax Board shall promulgate rules and
25regulations as necessary or appropriate to implement this section.
26(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
27Division 3 of Title 2 of the Government Code does not apply to
28any standard, criterion, procedure, determination, rule, notice, or
29guideline established or issued by the Franchise Tax Board
30pursuant to this section.
31(h) This section shall remain in effect only until December 1,
322017, and as of that date is repealed.
Section 23684 is added to the Revenue and Taxation
34Code, to read:
(a) For each taxable year beginning on or after January
361, 2013, and before January 1, 2017, there shall be allowed as a
37credit against the “tax,” as defined in Section 23036, an amount
38equal to the monetary amount contributed by a taxpayer to a
39nonprofit organization to provide a grant for a qualified program.
P6 1The credit shall not exceed 50 percent of the “tax” for the taxable
2year.
3(b) For purposes of this section:
4(1) “Charter school” means a school established pursuant to
5Part 26.8 (commencing with Section 47600) of Title 2 of the
6Education Code providing elementary or high school education.
7(2) “Nonprofit
organization” means an organization that is
8tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
9(3) “Public school” means any day or evening elementary school
10and any day or evening high school established by statute, or by
11municipal or district authority.
12(4) “Qualified program” means a program in science,
13technology, engineering, and math literacy, and the arts for public
14and charter schools that is both of the following:
15(A) An advanced academic or similar program that is not part
16of the regular program of a public or charter school, but enhances
17the curriculum of the public or charter school.
18(B) A cocurricular activity for pupils that is an optional,
19noncredit educational activity that supplements
education,
20including, but not limited to, gifted programs, visual and
21performing arts, music arts, academic clubs, and educational field
22trips.
23(c) A grant provided by the nonprofit organization for a qualified
24program shall be provided to a specific public or charter school,
25or more than one school, of the nonprofit organization’s choosing.
26A grant shall include guidelines that detail what specific programs
27may be funded by the grant moneys and shall prohibit the use of
28grant moneys for administration or overhead costs.
29(d) The aggregate amount of credit allowed to all taxpayers
30under this section and Section 23683 shall not exceed fifty million
31dollars ($50,000,000) for all taxable years.
32(e) In the case where the credit allowed by this section exceeds
33the “tax,” the excess may be carried over to reduce the “tax”
in
34the following year, and the succeeding years if necessary, until the
35credit is exhausted.
36(f) The credit under this section shall be in addition to any
37deduction under this part to which the taxpayer may be entitled.
38(g) (1) The Franchise Tax Board shall promulgate rules and
39regulations as necessary or appropriate to implement this section.
P7 1(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
2Division 3 of Title 2 of the Government Code does not apply to
3any standard, criterion, procedure, determination, rule, notice, or
4guideline established or issued by the Franchise Tax Board
5pursuant to this section.
6(h) This section shall remain in effect only until December 1,
72017, and as of that date is repealed.
This act provides for a tax levy within the meaning of
9Article IV of the Constitution and shall go into immediate effect.
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