BILL NUMBER: SB 284 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 17, 2013
INTRODUCED BY Senator De León
FEBRUARY 14, 2013
An act to add and repeal Sections 17053.86 and 23686 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 284, as amended, 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, as
specified, and would require the Treasurer
California Educational Facilities Authority to perform
certain duties with regard to allocating and certifying the tax
credits allowed under these provisions.
This bill would become operative only if SB 285 of the 2013-14
Regular Session is enacted and takes effect on or before January 1,
2014.
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 17053.86 is added to the Revenue and Taxation
Code, to read:
17053.86. (a) (1) For taxable years beginning on or after January
1, 2014, and before January 1, 2017, there shall be allowed a credit
against the "net tax," as defined in Section 17039, an amount equal
to the following:
(A) For each taxable year beginning on and after January 1, 2014,
and before January 1, 2015, 60 percent of the amount contributed by
the taxpayer for the 2014 taxable year to the College
Access Tax Credit Fund, as allocated and certified by the
Treasurer California Educational Facilities
Authority .
(B) For each taxable year beginning on and after January 1, 2015,
and before January 1, 2016, 55 percent of the amount contributed by
the taxpayer for the 2015 taxable year to the College
Access Tax Credit Fund, as allocated and certified by the
Treasurer California Educational
Facilities Authority .
(C) For each taxable year beginning on and after January 1, 2016,
and before January 1, 2017, 50 percent of the amount contributed by
the taxpayer for the 2016 taxable year to the College
Access Tax Credit Fund, as allocated and certified by the
Treasurer California Educational
Facilities Authority .
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 23686 shall
not exceed five hundred be an amount equal to the sum
of all of the following:
(A) Five hundred million dollars
($500,000,000) in credit s for the 2014
calendar year and five hundred million dollars
($500,000,000) for each calendar year thereafter.
(B) The amount of previously unallocated and uncertified credits.
(2) (A) For purposes of this section, the Treasurer
California Educational Facilities Authority
shall do all of the following:
(i) On or after January 1, 2014, and before January 1, 2017,
allocate and certify tax credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the
Treasurer California Educational Facilities Authority
a certification for the credit allowed by this section.
(iii) On or after January 1, 2014, and before January 1, 2016,
notify the taxpayer within seven days of receipt of a contribution of
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer a choice between either the return of the contribution
or the receipt of the certification for the next taxable year.
(iv) On or after January 1, 2016, and before January 1, 2017,
notify the taxpayer within seven days of receipt of a contribution,
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer the option of a return of all of the contribution or the
portion of the contribution that would be limited, as applicable.
(v)
(iii) Provide to the Franchise Tax Board a copy of each
credit certificate issued for the calendar year by March 1 of the
calendar year immediately following the year in which those
certificates are issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) 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
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
(c) (1) 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 succeeding five years if
necessary, until the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) (1) The College Access Tax Credit Fund is hereby created as a
special fund in the State Treasury. All revenue in this special fund,
upon appropriation by the Legislature, shall be allocated to the
Student Aid Commission for purposes of awarding Cal Grants to
students pursuant to Section 69432.75 of the Education Code and
to reimburse all administrative costs incurred by the Student Aid
Commission and the California Educational Facilities Authority in
connection with the duties required under this section and Section
23686 .
(2) The tax credit allowed by subdivision (a) of this section and
subdivision (a) of Section 23686 for donations to the College Access
Tax Credit Fund shall be known as the College Access Tax Credit.
(e) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
SEC. 2. Section 23686 is added to the Revenue and Taxation Code,
to read:
23686. (a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2017, there shall be allowed a
credit against the "tax," as defined in Section 23036, an amount
equal to the following:
(A) For taxable years beginning on and after January 1,
2014, and before January 1, 2015, 60 percent of the amount
contributed by the taxpayer during the 2013
for the 2014 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the Treasurer
California Educational Facilities Authority .
(B) For taxable years beginning on and after January 1,
2015, and before January 1, 2016, 55 percent of the amount
contributed by the taxpayer during the 2014
for the 2015 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the Treasurer
California Educational Facilities Authority .
(C) For taxable years beginning on and after January 1,
2016, and before January 1, 2017, 50 percent of the amount
contributed by the taxpayer during the 2015
for the 2016 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the Treasurer
California Educational Facilities Authority .
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 17053.86 shall
not exceed five hundred be an amount equal to
the sum of all of the following:
(A) Five hundred million dollars
($500,000,000) for the 2014 calendar year and five hundred
million dollars ($500,000,000) for each calendar year
thereafter.
(B) The amount of previously unallocated and uncertified credits.
(2) (A) For purposes of this section, the Treasurer
California Educational Facilities Authority
shall do all of the following:
(i) On or after January 1, 2014, and before January 1,
2015 2017 , allocate and certify tax credits to
taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the
Treasurer California Educational Facilities Authority
a certification for the credit allowed by this section.
(iii) On or after January 1, 2015, and before January 1, 2016,
notify the taxpayer within seven days of receipt of a contribution of
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer a choice between either the return of the contribution
or the receipt of the certification for the next taxable year.
(iv) On or after January 1, 2016, and before January 1, 2017,
notify the taxpayer within seven days of receipt of a contribution,
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five hundred million dollar ($500,000,000) cap set forth in paragraph
(1) of subdivision (b) has been reached, the Treasurer shall offer
the taxpayer the option of a return of all of the contribution or the
portion of the contribution that would be limited, as applicable.
(v)
(iii) Provide to the Franchise Tax Board a copy of each
credit certificate issued for the calendar year by March 1 of the
calendar year immediately following the year in which those
certificates are issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) 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
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
(c) (1) 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 succeeding five years if necessary, until
the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
SEC. 3. This act shall become operative only if
Senate Bill 285 of the 2013-14 Regular Session is enacted and takes
effect on or before January 1, 2014.
SEC. 3. SEC. 4. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.