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.
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
4January 1, 2014, and before January 1, 2017, there shall be allowed
5begin insert as end insert a 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. The procedure shall require the California
3begin delete Educationend deletebegin insert Educationalend insert Facilities Authority to certify the
4contribution amount eligible for credit within 45 days following
5receipt of the contribution.
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
25 fund shall be allocated as follows:
26(A) First to the General Fund in an amount equal to the
27
aggregate amount of certified credits allowed pursuant to this
28section and Section 23686 for the taxable year.
29(B) Second, upon appropriation, as follows:
30(i) To the Franchise Tax Board, the California Educational
31Facilities Authority, the Controller, and the Student Aid
32Commission for reimbursement of all administrative costs incurred
33by those agencies in connection with their duties under this section,
34Section 23686, and Section 69432.7 of the Education Code.
35(ii) To the Student Aid Commission for purposes of awarding
36Cal Grants to students pursuant to Section 69432.7begin insert of the Education
37Codeend insert.
38(2) The tax credit allowed by subdivision (a) of this section and
39subdivision (a) of Section 23686 for donations to the College
P4 1Access Tax Credit Fund shall be known as the College Access
2Tax Credit.
3(e) This section shall remain in effect only until December 1,
42017, and as of that date is repealed.
Section 23686 is added to the Revenue and Taxation
6Code, to read:
(a) (1) For each taxable year beginning on or after
8January 1, 2014, and before January 1, 2017, there shall be allowed
9begin insert as end insert a credit against the “tax,” as defined in Section 23036, an
10amount equal to the following:
11(A) For taxable years beginning on and after January 1, 2014,
12and before January 1, 2015, 60 percent of the amount contributed
13by the taxpayer for the 2014 taxable year to the College Access
14Tax Credit Fund, as allocated and certified by the California
15Educational Facilities Authority.
16(B) For taxable years beginning on and after January 1, 2015,
17and before January 1, 2016, 55 percent of the amount contributed
18by the taxpayer for the 2015 taxable year to the College Access
19Tax Credit Fund, as allocated and certified by the California
20Educational Facilities Authority.
21(C) For taxable years beginning on and after January 1, 2016,
22and before January 1, 2017, 50 percent of the amount contributed
23by the taxpayer for the 2016 taxable year to the College Access
24Tax Credit Fund, as allocated and certified by the California
25Educational Facilities Authority.
26(2) Contributions shall be made only in cash.
27(b) (1) The aggregate amount of credit that may be allocated
28and certified
pursuant to this section and Section 17053.86 shall
29be an amount equal to the sum of all of the following:
30(A) Five hundred million dollars ($500,000,000) for the 2014
31calendar year and each calendar year thereafter.
32(B) The amount of previously unallocated and uncertified
33credits.
34(2) (A) For purposes of this section, the California Educational
35Facilities Authority shall do all of the following:
36(i) On or after January 1, 2014, and before January 1, 2017,
37allocate and certify tax credits to taxpayers under this section.
38(ii) Establish a procedure for taxpayers to contribute to the
39College
Access Tax Credit Fund and to obtain from the California
40Educational Facilities Authority a certification for the credit
P5 1allowed by this section. The procedure shall require the California
2begin delete Educationend deletebegin insert Educationalend insert Facilities Authority to certify the
3contribution amount eligible for credit within 45 days following
4receipt of the contribution.
5(iii) Provide to the Franchise Tax Board a copy of each credit
6certificate issued for the calendar year by March 1 of the calendar
7year immediately following the year in which those certificates
8are issued.
9(B) (i) The California Educational Facilities
Authority shall
10adopt any regulations necessary to implement this paragraph.
11(ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
12Division 3 of Title 2 of the Government Code does not apply to
13any regulation adopted by the California Educational Facilities
14Authority pursuant to clause (i).
15(c) (1) In the case where the credit allowed by this section
16exceeds the “tax,” the excess may be carried over to reduce the
17“tax” in the following year, and succeeding five years if necessary,
18until the credit is exhausted.
19(2) A deduction shall not be allowed under this part for amounts
20taken into account under this section in calculating the credit
21allowed by this section.
22(d) This section shall remain in effect only until December 1,
232017, and as of that date is repealed.
This act shall become operative only if Senate Bill
25285 of the 2013-14 Regular Session is enacted and takes effect
26on or before January 1, 2014.
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