BILL NUMBER: SB 471	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Berryhill

                        FEBRUARY 21, 2013

   An act to amend Section 17053.75 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 471, as introduced, Berryhill. Personal income taxes: credit.
   The Personal Income Tax Law allows for various tax credits in
computing the taxes imposed by that law, including a credit against
"net tax" for the taxable year in an amount equal to 5% of qualified
wages received by a taxpayer attributable to services performed in an
enterprise zone during the taxable year.
   This bill would make a technical, nonsubstantive change to that
provision.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17053.75 of the Revenue and Taxation Code is
amended to read:
   17053.75.  (a) There shall be allowed as a credit against the "net
 tax" (as   tax," as  defined by Section
 17039)   17039,  for the taxable year an
amount equal to five percent of the qualified wages received by the
taxpayer during the taxable year.
   (b) For purposes of this section:
   (1) "Qualified employee" means a taxpayer who meets both of the
following:
   (A) Is described in clauses (i) and (ii) of subparagraph (A) of
paragraph (4) of subdivision (b) of Section 17053.74.
   (B) Is not an employee of the federal government or of this state
or of any political subdivision of this state.
   (2) (A) "Qualified wages" means "wages," as defined in subsection
(b) of Section 3306 of the Internal Revenue Code, attributable to
services performed for an employer with respect to whom the taxpayer
is a qualified employee in an amount that does not exceed one and
one-half times the dollar limitation specified in that subsection.
   (B) "Qualified wages" does not include any compensation received
from the federal government or this state or any political
subdivision of this state.
   (C) "Qualified wages" does not include any wages received on or
after the date the enterprise zone designation expires, is no longer
binding, or becomes inoperative.
   (3) "Enterprise zone" means any area designated as an enterprise
zone pursuant to Chapter 12.8 (commencing with Section 7070) of
Division 7 of Title 1 of the Government Code.
   (c) For each dollar of income received by the taxpayer in excess
of qualified wages, as defined in this section, the credit shall be
reduced by nine cents ($0.09).
   (d) The amount of the credit allowed by this section in any
taxable year shall not exceed the amount of tax that would be imposed
on the taxpayer's income attributable to employment within the
enterprise zone as if that income represented all of the income of
the taxpayer subject to tax under this part.