BILL NUMBER: AB 943	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Nestande

                        FEBRUARY 22, 2013

   An act to add and repeal Sections 1705.83, 17053.84, 23683, and
23684 of the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 17053.83 is added to the Revenue and Taxation
Code, to read:
   17053.83.  (a) For each taxable year beginning on or after January
1, 2013, and before January 1, 2017, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to the monetary amount contributed by a taxpayer to a nonprofit
organization to fund a qualified scholarship. The credit shall not
exceed 50 percent of the "net tax" for the taxable year.
   (b) For purposes of this section:
   (1) "Nonprofit organization" means an organization that is
tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
   (2) "Private school" means a person, firm, association,
partnership, or corporation offering or conducting private school
instruction on the elementary or high school level.
   (3) "Qualified scholarship" means a scholarship for a pupil with
special needs or a pupil in foster care to attend a private school
that meets all of the following:
   (A) The pupil remains eligible for the scholarship until he or she
graduates from high school or leaves the foster care program.
   (B) The scholarship may be used at any private school if the pupil'
s residence changes and attendance at a particular private school is
not feasible.
   (C) Eligibility for the scholarship shall be based on family
income, not to exceed 250 percent of the federal poverty guidelines.
A partial scholarship may be granted if the family income of a pupil
that was awarded a scholarship in the previous year increases in the
following year.
   (c) A nonprofit organization that provides qualified scholarships
shall retain data on the educational improvement of scholarship
recipients so that the efficacy of the qualified scholarship program
may be evaluated.
   (d) The aggregate amount of credit allowed to all taxpayers under
this section and Section 23684 shall not exceed fifty million dollars
($50,000,000) for all taxable years.
   (e) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and the succeeding years if necessary, until
the credit is exhausted.
   (f) The credit under this section shall be in addition to any
deduction under this part to which the taxpayer may be entitled.
   (g) (1) The Franchise Tax Board shall promulgate rules and
regulations as necessary or appropriate to implement this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 2.  Section 17053.84 is added to the Revenue and Taxation
Code, to read:
   17053.84.  (a) For each taxable year beginning on or after January
1, 2013, and before January 1, 2017, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to the monetary amount contributed by a taxpayer to a nonprofit
organization to provide a grant for a qualified program. The credit
shall not exceed 50 percent of the "net tax" for the taxable year.
   (b) For purposes of this section:
   (1) "Charter school" means a school established pursuant to Part
26.8 (commencing with Section 47600) of Title 2 of the Education Code
providing elementary or high school education.
   (2) "Nonprofit organization" means an organization that is
tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
   (3) "Public school" means any day or evening elementary school and
any day or evening high school established by statute, or by
municipal or district authority.
   (4) "Qualified program" means a program in science, technology,
engineering, and math literacy, and the arts for public and charter
schools that is both of the following:
   (A) An advanced academic or similar program that is not part of
the regular program of a public or charter school, but enhances the
curriculum of the public or charter school.
   (B) A cocurricular activity for pupils that is an optional,
noncredit educational activity that supplements education, including,
but not limited to, gifted programs, visual and performing arts,
music arts, academic clubs, and educational field trips.
   (c) A grant provided by the nonprofit organization for a qualified
program shall be provided to a specific public or charter school, or
more than one school, of the nonprofit organization's choosing. A
grant shall include guidelines that detail what specific programs may
be funded by the grant moneys and shall prohibit the use of grant
moneys for administration or overhead costs.
   (d) The aggregate amount of credit allowed to all taxpayers under
this section and Section 23683 shall not exceed fifty million dollars
($50,000,000) for all taxable years.
   (e) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and the succeeding years if necessary, until
the credit is exhausted.
   (f) The credit under this section shall be in addition to any
deduction under this part to which the taxpayer may be entitled.
   (g) (1) The Franchise Tax Board shall promulgate rules and
regulations as necessary or appropriate to implement this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 3.  Section 23683 is added to the Revenue and Taxation Code,
to read:
   23683.  (a) For each taxable year beginning on or after January 1,
2013, and before January 1, 2017, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to
the monetary amount contributed by a taxpayer to a nonprofit
organization to fund a qualified scholarship. The credit shall not
exceed 50 percent of the "tax" for the taxable year.
   (b) For purposes of this section:
   (1) "Nonprofit organization" means an organization that is
tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
   (2) "Private school" means a person, firm, association,
partnership, or corporation offering or conducting private school
instruction on the elementary or high school level.
   (3) "Qualified scholarship" means a scholarship for a pupil with
special needs, a pupil in foster care, or a pupil from a low-income
family, to attend a private school that meets all of the following:
   (A) The pupil remains eligible for the scholarship until he or she
graduates from high school or leaves the foster care program.
   (B) The scholarship may be used at any private school if the pupil'
s residence changes and attendance at a particular private school is
not feasible.
   (C) Eligibility for the scholarship shall be based on family
income, not to exceed 250 percent of the federal poverty guidelines.
A partial scholarship may be granted if the family income of a pupil
that was awarded a scholarship in the previous year increases in the
following year.
   (c) A nonprofit organization that provides qualified scholarships
shall retain data on the educational improvement of scholarship
recipients so that the efficacy of the qualified scholarship program
may be evaluated.
   (d) The aggregate amount of credit allowed to all taxpayers under
this section and Section 23684 shall not exceed fifty million dollars
($50,000,000) for all taxable years.
   (e) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the succeeding years if necessary, until the
credit is exhausted.
   (f) The credit under this section shall be in addition to any
deduction under this part to which the taxpayer may be entitled.
   (g) (1) The Franchise Tax Board shall promulgate rules and
regulations as necessary or appropriate to implement this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 4.  Section 23684 is added to the Revenue and Taxation Code,
to read:
   23684.  (a) For each taxable year beginning on or after January 1,
2013, and before January 1, 2017, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to
the monetary amount contributed by a taxpayer to a nonprofit
organization to provide a grant for a qualified program. The credit
shall not exceed 50 percent of the "tax" for the taxable year.
   (b) For purposes of this section:
   (1) "Charter school" means a school established pursuant to Part
26.8 (commencing with Section 47600) of Title 2 of the Education Code
providing elementary or high school education.
   (2) "Nonprofit organization" means an organization that is
tax-exempt under Section 501(c)(3) of the Internal Revenue Code.
   (3) "Public school" means any day or evening elementary school and
any day or evening high school established by statute, or by
municipal or district authority.
   (4) "Qualified program" means a program in science, technology,
engineering, and math literacy, and the arts for public and charter
schools that is both of the following:
   (A) An advanced academic or similar program that is not part of
the regular program of a public or charter school, but enhances the
curriculum of the public or charter school.
   (B) A cocurricular activity for pupils that is an optional,
noncredit educational activity that supplements education, including,
but not limited to, gifted programs, visual and performing arts,
music arts, academic clubs, and educational field trips.
   (c) A grant provided by the nonprofit organization for a qualified
program shall be provided to a specific public or charter school, or
more than one school, of the nonprofit organization's choosing. A
grant shall include guidelines that detail what specific programs may
be funded by the grant moneys and shall prohibit the use of grant
moneys for administration or overhead costs.
   (d) The aggregate amount of credit allowed to all taxpayers under
this section and Section 23683 shall not exceed fifty million dollars
($50,000,000) for all taxable years.
   (e) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the succeeding years if necessary, until the
credit is exhausted.
   (f) The credit under this section shall be in addition to any
deduction under this part to which the taxpayer may be entitled.
   (g) (1) The Franchise Tax Board shall promulgate rules and
regulations as necessary or appropriate to implement this section.
   (2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (h) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 5.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.