SB 284, as introduced, De León. Income taxes: credits: contributions to education funds.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, under both laws, for taxable years beginning on or after January 1, 2014, and before January 1, 2017, would allow a credit equal to a certain percentage of a contribution to the College Access Tax Credit Fund, established by this bill, for specified education purposes, as provided. This bill would specify that the aggregate amount of credit that may be allocated under both laws shall not exceed $500,000,000 for each calendar year, and would require the Treasurer to perform certain duties with regard to allocating and certifying the tax credits allowed under these provisions.
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 17053.86 is added to the Revenue and
2Taxation Code, to read:
(a) (1) For taxable years beginning on or after
2January 1, 2014, and before January 1, 2017, there shall be allowed
3a credit against the “net tax,” as defined in Section 17039, an
4amount equal to the following:
5(A) For each taxable year beginning on and after January 1,
62014, and before January 1, 2015, 60 percent of the amount
7contributed by the taxpayer 2014 taxable year to the College Access
8Tax Credit Fund, as allocated and certified by the Treasurer.
9(B) For each taxable year beginning on and after January 1,
102015, and before January 1, 2016, 55 percent of the amount
11contributed by the taxpayer 2015 taxable year to the College Access
12Tax Credit Fund, as
allocated and certified by the Treasurer.
13(C) For each taxable year beginning on and after January 1,
142016, and before January 1, 2017, 50 percent of the amount
15contributed by the taxpayer 2016 taxable year to the College Access
16Tax Credit Fund, as allocated and certified by the Treasurer.
17(2) Contributions shall be made only in cash.
18(b) (1) The aggregate amount of credit that may be allocated
19and certified pursuant to this section and Section 23686 shall not
20exceed five hundred million dollars ($500,000,000) for the 2014
21calendar year and five hundred million dollars ($500,000,000) for
22each calendar year thereafter.
23(2) (A) For purposes of this section, the Treasurer shall do all
24of the following:
25(i) On or after January 1, 2014, and before January 1, 2017,
26allocate and certify tax credits to taxpayers under this section.
27(ii) Establish a procedure for taxpayers to contribute to the
28College Access Tax Credit Fund and to obtain from the Treasurer
29a certification for the credit allowed by this section.
30(iii) On or after January 1, 2014, and before January 1, 2016,
31notify the taxpayer within seven days of receipt of a contribution
32of the contribution amount that is eligible for a credit. If the
33allocation and certification would be limited or denied because
34the five hundred million dollar ($500,000,000) cap set forth in
35paragraph (1) of subdivision (b) has been reached, the Treasurer
36shall offer the taxpayer a choice between either the return of the
37contribution or the receipt of the certification for the next
taxable
38year.
39(iv) On or after January 1, 2016, and before January 1, 2017,
40notify the taxpayer within seven days of receipt of a contribution,
P3 1the contribution amount that is eligible for a credit. If the allocation
2and certification would be limited or denied because the five
3hundred million dollar ($500,000,000) cap set forth in paragraph
4(1) of subdivision (b) has been reached, the Treasurer shall offer
5the taxpayer the option of a return of all of the contribution or the
6portion of the contribution that would be limited, as applicable.
7(v) Provide to the Franchise Tax Board a copy of each credit
8certificate issued for the calendar year by March 1 of the calendar
9year immediately following the year in which those certificates
10are issued.
11(c) (1) In the case where the credit allowed by this
section
12exceeds the “net tax,” the excess may be carried over to reduce
13the “net tax” in the following year, and succeeding five years if
14necessary, until the credit is exhausted.
15(2) A deduction shall not be allowed under this part for amounts
16taken into account under this section in calculating the credit
17allowed by this section.
18(d) (1) The College Access Tax Credit Fund is hereby created
19as a special fund in the State Treasury. All revenue in this special
20fund, upon appropriation by the Legislature, shall be allocated to
21the Student Aid Commission for purposes of awarding Cal Grants
22to students pursuant to Section 69432.75 of the Education Code.
23(2) The tax credit allowed by subdivision (a) of this section and
24subdivision (a) of Section 23686 for donations to the College
25Access Tax Credit
Fund shall be known as the College Access
26Tax Credit.
27(e) This section shall remain in effect only until December 1,
282017, and as of that date is repealed.
Section 23686 is added to the Revenue and Taxation
30Code, to read:
(a) (1) For each taxable year beginning on or after
32January 1, 2014, and before January 1, 2017, there shall be allowed
33a credit against the “tax,” as defined in Section 23036, an amount
34equal to the following:
35(A) For taxable years on and after January 1, 2014, and before
36January 1, 2015, 60 percent of the amount contributed by the
37taxpayer during the 2013 taxable year to the College Access Tax
38Credit Fund, as allocated and certified by the Treasurer.
39(B) For taxable years on and after January 1, 2015, and before
40January 1, 2016, 55 percent of the amount contributed by the
P4 1taxpayer during the 2014 taxable year to the College Access Tax
2Credit Fund, as
allocated and certified by the Treasurer.
3(C) For taxable years on and after January 1, 2016, and before
4January 1, 2017, 50 percent of the amount contributed by the
5taxpayer during the 2015 taxable year to the College Access Tax
6Credit Fund, as allocated and certified by the Treasurer.
7(2) Contributions shall be made only in cash.
8(b) (1) The aggregate amount of credit that may be allocated
9and certified pursuant to this section and Section 17053.86 shall
10not exceed five hundred million dollars ($500,000,000) for the
112014 calendar year and five hundred million dollars ($500,000,000)
12for each calendar year thereafter.
13(2) (A) For purposes of this section, the Treasurer shall do all
14of the following:
15(i) On or after January 1, 2014, and before January 1, 2015,
16allocate and certify tax credits to taxpayers under this section.
17(ii) Establish a procedure for taxpayers to contribute to the
18College Access Tax Credit Fund and to obtain from the Treasurer
19a certification for the credit allowed by this section.
20(iii) On or after January 1, 2015, and before January 1, 2016,
21notify the taxpayer within seven days of receipt of a contribution
22of the contribution amount that is eligible for a credit. If the
23allocation and certification would be limited or denied because
24the five hundred million dollar ($500,000,000) cap set forth in
25paragraph (1) of subdivision (b) has been reached, the Treasurer
26shall offer the taxpayer a choice between either the return of the
27contribution or the receipt of the certification for the next
taxable
28year.
29(iv) On or after January 1, 2016, and before January 1, 2017,
30notify the taxpayer within seven days of receipt of a contribution,
31the contribution amount that is eligible for a credit. If the allocation
32and certification would be limited or denied because the five
33hundred million dollar ($500,000,000) cap set forth in paragraph
34(1) of subdivision (b) has been reached, the Treasurer shall offer
35the taxpayer the option of a return of all of the contribution or the
36portion of the contribution that would be limited, as applicable.
37(v) Provide to the Franchise Tax Board a copy of each credit
38certificate issued for the calendar year by March 1 of the calendar
39year immediately following the year in which those certificates
40are issued.
P5 1(c) (1) In the case where the credit allowed by this
section
2exceeds the “tax,” the excess may be carried over to reduce the
3“tax” in the following year, and succeeding five years if necessary,
4until the credit is exhausted.
5(2) A deduction shall not be allowed under this part for amounts
6taken into account under this section in calculating the credit
7allowed by this section.
8(d) This section shall remain in effect only until December 1,
92017, and as of that date is repealed.
This act provides for a tax levy within the meaning of
11Article IV of the Constitution and shall go into immediate effect.
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