BILL NUMBER: SB 798	ENROLLED
	BILL TEXT

	PASSED THE SENATE  JANUARY 28, 2014
	PASSED THE ASSEMBLY  AUGUST 20, 2014
	AMENDED IN SENATE  JANUARY 6, 2014

INTRODUCED BY   Senator De León

                        FEBRUARY 22, 2013

   An act to add and repeal Sections 17053.86 and 23686 of the
Revenue and Taxation Code, relating to student financial aid, and
declaring the urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 798, 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. The 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 174 of the 2013-14
Regular Session is enacted and takes effect on or before January 1,
2015.
   This bill would declare that it is to take effect immediately as
an urgency statute.


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 as 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 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 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 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 be an
amount equal to the sum of all of the following:
   (A) Five hundred million dollars ($500,000,000) in credits for the
2014 calendar year and each calendar year thereafter.
   (B) The amount of previously unallocated and uncertified credits.
   (2) (A) For purposes of this section, the 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 California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
   (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
shall be allocated as follows:
   (A) First to the General Fund in an amount equal to the aggregate
amount of certified credits allowed pursuant to this section and
Section 23686 for the taxable year. Funds allocated to the General
Fund shall be considered General Fund revenues for purposes of
Sections 8 and 8.5 of Article XVI of the California Constitution.
   (B) Second, upon appropriation, as follows:
   (i) To the Franchise Tax Board, the California Educational
Facilities Authority, the Controller, and the Student Aid Commission
for reimbursement of all administrative costs incurred by those
agencies in connection with their duties under this section, Section
23686, and Section 69432.7 of the Education Code.
   (ii) To the Student Aid Commission for purposes of awarding Cal
Grants to students pursuant to Section 69431.7 of the Education Code.

   (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
as 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 for the 2014 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the 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 for the 2015 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the 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 for the 2016 taxable year to the College Access Tax Credit
Fund, as allocated and certified by the 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 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 each calendar year thereafter.
   (B) The amount of previously unallocated and uncertified credits.
   (2) (A) For purposes of this section, the 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 California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
   (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 174 of
the 2013-14 Regular Session is enacted and takes effect on or before
January 1, 2015.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   As our state economy is recovering, it is important to provide
adequate funding to the Cal Grant B Access awards beginning in the
2015-16 academic year so that these students can stay enrolled, it is
therefore necessary that this act take effect immediately so that
contributions can be made to the College Access Tax Credit Fund in
2014.