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 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.
end deleteVote: 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
4January 1, 2014, and before January 1, 2017, there shall be allowed
5a credit against the “net tax,” as defined in Section 17039, an
6amount equal to the following:
7(A) For each taxable year beginning on and after January 1,
82014, and before January 1, 2015, 60 percent of the amount
9contributed by the taxpayer for the 2014 taxable year to the College
10Access Tax Credit Fund, as allocated and certified by the
California
11Educational Facilities Authority.
12(B) For each taxable year beginning on and after January 1,
132015, and before January 1, 2016, 55 percent of the amount
14contributed by the taxpayer for the 2015 taxable year to the College
15Access Tax Credit Fund, as allocated and certified by the California
16Educational Facilities Authority.
17(C) For each taxable year beginning on and after January 1,
182016, and before January 1, 2017, 50 percent of the amount
19contributed by the taxpayer for the 2016 taxable year to the College
20Access Tax Credit Fund, as allocated and certified by the California
21Educational Facilities Authority.
22(2) Contributions shall be made only in cash.
23(b) (1) The aggregate amount of credit that may be allocated
24and certified pursuant to this section and Section 23686 shall
be
25an amount equal to the sum of all of the following:
26(A) Five hundred million dollars ($500,000,000) in credits for
27the 2014 calendar year and each calendar year thereafter.
28(B) The amount of previously unallocated and uncertified
29credits.
30(2) (A) For purposes of this section, the California Educational
31Facilities Authority shall do all of the following:
32(i) On or after January 1, 2014, and before January 1, 2017,
33allocate and certify tax credits to taxpayers under this section.
34(ii) Establish a procedure for taxpayers to contribute to the
35College
Access Tax Credit Fund and to obtain from the
California
P3 1Educational Facilities Authority a certification for the credit
2allowed by this section.begin insert The procedure shall require the California
3Education Facilities Authority to certify the contribution amount
4eligible for credit within 45 days following receipt of the
5contribution.end insert
6(iii) Provide to the Franchise Tax Board a copy of each credit
7certificate issued for the calendar year by March 1 of the calendar
8year immediately following the year in which those certificates
9are issued.
10(B) (i) The California Educational Facilities Authority shall
11adopt any regulations necessary to implement this paragraph.
12(ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
13Division 3 of Title 2 of the Government Code does not apply to
14any regulation adopted by the California Educational Facilities
15Authority pursuant to clause (i).
16(c) (1) In the case where the credit allowed by this section
17exceeds the “net tax,” the excess may be carried over to reduce
18the “net tax” in the following year, and succeeding five years if
19necessary, until the credit is exhausted.
20(2) A deduction shall not be allowed under this part for amounts
21taken into account under this section in calculating the credit
22allowed by this section.
23(d) (1) The College Access Tax Credit Fund is hereby created
24as a
special fund in the State Treasury. All revenue in this special
25fundbegin delete, upon appropriation by the Legislature,end delete shall be allocatedbegin delete to begin insert as follows:end insert
26the Student Aid Commission for purposes of awarding Cal Grants
27to students pursuant to Section 69432.75 of the Education Code
28and to reimburse all administrative costs incurred by the Student
29Aid Commission and the California Educational Facilities
30Authority in connection with the duties required under this section
31and Section 23686.end delete
32(A) First to the General Fund in an amount equal to the
33
aggregate amount of certified credits allowed pursuant to this
34section and Section 23686 for the taxable year.
35(B) Second, upon appropriation, as follows:
end insertbegin insert
36(i) To the Franchise Tax Board, the California Educational
37Facilities Authority, the Controller, and the Student Aid
38Commission for reimbursement of all administrative costs incurred
39by those agencies in connection with their duties under this section,
40Section 23686, and Section 69432.7 of the Education Code.
P4 1(ii) To the Student Aid Commission for purposes of awarding
2Cal Grants to students pursuant to Section 69432.7.
3(2) The tax credit allowed by subdivision (a) of this section and
4subdivision (a) of Section 23686 for donations to the College
5Access Tax Credit Fund shall be known as the College Access
6Tax Credit.
7(e) This section shall remain in effect only until December 1,
82017, and as of that date is repealed.
Section 23686 is added to the Revenue and Taxation
10Code, to read:
(a) (1) For each taxable year beginning on or after
12January 1, 2014, and before January 1, 2017, there shall be allowed
13a credit against the “tax,” as defined in Section 23036, an amount
14equal to the following:
15(A) For taxable years beginning on and after January 1, 2014,
16and before January 1, 2015, 60 percent of the amount contributed
17by the taxpayer for the 2014 taxable year to the College Access
18Tax Credit Fund, as allocated and certified by the California
19Educational Facilities Authority.
20(B) For taxable years beginning on and after January 1, 2015,
21and before January 1, 2016, 55
percent of the amount contributed
22by the taxpayer for the 2015 taxable year to the College Access
23Tax Credit Fund, as allocated and certified by the
California
24Educational Facilities Authority.
25(C) For taxable years beginning on and after January 1, 2016,
26and before January 1, 2017, 50 percent of the amount contributed
27by the taxpayer for the 2016 taxable year to the College Access
28Tax Credit Fund, as allocated and certified by the California
29Educational Facilities Authority.
30(2) Contributions shall be made only in cash.
31(b) (1) The aggregate amount of credit that may be allocated
32and certified pursuant to this section and Section 17053.86 shall
33be an amount equal to the sum of all of the following:
34(A) Five hundred million dollars ($500,000,000) for the 2014
35calendar
year and each calendar year thereafter.
36(B) The amount of previously unallocated and uncertified
37credits.
38(2) (A) For purposes of this section, the California Educational
39Facilities Authority shall do all of the following:
P5 1(i) On or after January 1, 2014, and before January 1, 2017,
2allocate and certify tax credits to taxpayers under this section.
3(ii) Establish a procedure for taxpayers to contribute to the
4College Access Tax Credit Fund and to obtain from the
California
5Educational Facilities Authority a certification for the credit
6allowed by this section.begin insert The procedure shall require the California
7Education Facilities Authority to certify the contribution amount
8eligible for credit within 45 days following receipt of the
9contribution.end insert
10(iii) Provide to the Franchise Tax Board a copy of each credit
11certificate issued for the calendar year by March 1 of the calendar
12year immediately following the year in which those certificates
13are issued.
14(B) (i) The California Educational Facilities Authority shall
15adopt any regulations necessary to implement this paragraph.
16(ii) 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 regulation adopted by the California Educational Facilities
19Authority pursuant to clause (i).
20(c) (1) In the case where the credit allowed by this section
21exceeds the “tax,” the excess may be carried over to reduce the
22“tax” in the following year, and succeeding five years if necessary,
23until the credit is exhausted.
24(2) A deduction shall not be allowed under this part for amounts
25taken into account under this section in calculating the credit
26allowed by this section.
27(d) This section shall remain in effect only until December 1,
282017, and as of that date is
repealed.
This act shall become operative only if Senate Bill
30285 of the 2013-14 Regular Session is enacted and takes effect
31on or before January 1, 2014.
This act provides for a tax levy within the meaning of
33Article IV of the Constitution and shall go into immediate effect.
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