BILL NUMBER: SB 268 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Nguyen
FEBRUARY 19, 2015
An act to amend Section 17052.6 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 268, as introduced, Nguyen. Income taxes: credit: dependent
care.
The Personal Income Tax Law, in modified conformity to federal
income tax law, authorizes a credit for household and dependent care
expenses necessary for gainful employment, as provided.
This bill, for taxable years beginning on or after January 1,
2015, would increase the amount of employment-related expenses
incurred during a taxable year which may be taken into account in
determining the amount of the credit from $3,000 to $4,000 if there
is one qualifying dependent and from $6,000 to $12,000 if there are 2
or more qualifying dependents.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17052.6 of the Revenue and Taxation Code is
amended to read:
17052.6. (a) For each taxable year beginning on or after January
1, 2000, there shall be allowed as a credit against the "net tax", as
defined in Section 17039, an amount determined in accordance with
Section 21 of the Internal Revenue Code, relating to expenses
for household and dependent care services necessary for gainful
employment, except that the amount of the credit shall be a
percentage, as provided in subdivision (b) of the allowable federal
credit without taking into account whether there is a federal tax
liability.
(b) For the purposes of subdivision (a), the percentage of the
allowable federal credit shall be determined as follows:
(1) For taxable years beginning before January 1, 2003:
The percentage
If the adjusted gross income of
is: credit is:
$40,000 or less.............. 63%
Over $40,000 but not over 53%
$70,000......................
Over $70,000 but not over 42%
$100,000.....................
Over $100,000................ 0%
(2) For taxable years beginning on or after January 1, 2003:
The percentage
If the adjusted gross income of
is: credit is:
$40,000 or less.............. 50%
Over $40,000 but not over 43%
$70,000......................
Over $70,000 but not over 34%
$100,000.....................
Over $100,000................ 0%
(c) For purposes of this section, "adjusted gross income" means
adjusted gross income as computed for purposes of paragraph (2) of
subdivision (h) of Section 17024.5.
(d) The credit authorized by this section shall be limited, as
follows:
(1) Employment-related expenses, within the meaning of Section 21
of the Internal Revenue Code, relating to expenses for
household and dependent care services necessary for gainful
employment, shall be limited to expenses for household services
and care provided in this state.
(2) Earned income, within the meaning of Section 21(d) of the
Internal Revenue Code, relating to earned income limitation,
shall be limited to earned income subject to tax under this
part. For purposes of this paragraph, compensation received by a
member of the armed forces for active services as a member of the
armed forces, other than pensions or retired pay, shall be considered
earned income subject to tax under this part, whether or not the
member is domiciled in this state.
(e) For purposes of this section, Section 21(b)(1) of the Internal
Revenue Code, relating to a qualifying individual, is modified to
additionally provide that a child, as defined in Section 151
(c)(3) 152(c)(3) of the Internal Revenue Code,
relating to age requirements, shall be treated, for
purposes of Section 152 of the Internal Revenue Code, relating
to dependent defined, as applicable for purposes of this
section, as receiving over one-half of his or her support during the
calendar year from the parent having custody for a greater portion of
the calendar year, that parent shall be treated as a "custodial
parent," within the meaning of Section 152(e) of the Internal Revenue
Code, relating to special rule for divorced parents, etc.,
as applicable for purposes of this section, and the child shall
be treated as a qualifying individual under Section 21(b)(1) of the
Internal Revenue Code, relating to qualifying individual,
as applicable for purposes of this section, if both of the following
apply:
(1) The child receives over one-half of his or her support during
the calendar year from his or her parents who never married each
other and who lived apart at all times during the last six months of
the calendar year.
(2) The child is in the custody of one or both of his or her
parents for more than one-half of the calendar year.
(f) For taxable years beginning on or after January 1, 2015:
(1) The reference to "$3,000" in Section 21(c)(1) of the Internal
Revenue Code is modified to read "$4,000".
(2) The reference to "$6,000" in Section 21(c)(2) of the Internal
Revenue Code is modified to read "$12,000".
(f)
(g) The amendments to this section made by Section 1.5
of Chapter 824 of the Statutes of 2002 shall apply only to taxable
years beginning on or after January 1, 2002.
(g)
(h) The amendments made to this section by the
act adding this subdivision Chapter 14 of the
Statutes of 2011 shall apply to taxable years beginning on or
after January 1, 2011.
SEC. 2. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.