Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1255

Introduced by Assembly Member Thurmond

February 27, 2015

An act to begin delete amend Section 17004 of end delete begin insert add Sections 17053.83 and 23683 to end insert the Revenue and Taxation Code, relating to taxation begin insert , to take effect immediately, tax levy end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 1255, as amended, Thurmond. begin delete Personal income taxes. end delete begin insert Income and corporation taxes: credit: donation of apparently wholesome food. end insert

The Personal Income Tax Law begin delete defines a taxpayer for purposes of that law. end delete begin insert and the Bank and Corporation Tax Law allow various credits against the taxes imposed by those laws. end insert

This bill would begin delete make technical, nonsubstantive changes to that definition. end delete begin insert allow a credit against those taxes for each taxable year, beginning on and after January 2015, a taxpayer donates apparently wholesome food, as defined, from any trade or business of the taxpayer to an organization located in California and exempt from federal income taxation, as specified. end insert

begin insert

This bill would take effect immediately as a tax levy.

end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 17053.83 is added to the end insert begin insert Revenue and
Taxation Code end insert begin insert , to read: end insert

begin insert

begin insert 17053.83. end insert   

(a) For taxable years beginning on or after January
1, 2015, a taxpayer who donates apparently wholesome food from
any trade or business of the taxpayer to an organization located
in California and exempt from federal income taxation as an
organization described in Section 501(c)(3) of the Internal Revenue
Code shall be allowed a credit against the “net tax,” as defined
in Section 17039, equal to 15 percent of the fair market value of
the contribution.

(b) For purposes of this section, “apparently wholesome food”
has the same meaning as the term in Section 170 of Title 26 of the
United States Code, as of January 1, 2015.

(c) 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) Section 41 does not apply to the credit allowed by this
section.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 23683 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 23683. end insert   

(a) For taxable years beginning on or after January
1, 2015, a taxpayer that donates apparently wholesome food from
any trade or business of the taxpayer to an organization located
in California and exempt from federal income taxation as an
organization described in Section 501(c)(3) of the Internal Revenue
Code shall be allowed a credit against the “tax,” as defined in
Section 23036, equal to 15 percent of the fair market value of the
contribution.

(b) For purposes of this section, “apparently wholesome food”
has the same meaning as the term in Section 170 of Title 26 of the
United States Code, as of January 1, 2015.

(c) 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) Section 41 does not apply to the credit allowed by this
section.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.

end insert

begin delete

SECTION 1.  

Section 17004 of the Revenue and Taxation Code
is amended to read:

17004.  

“Taxpayer” includes any individual, fiduciary, estate,
or trust subject to any tax that is imposed by this part, or any
partnership.

end delete