SB 295, as introduced, De León. College Access Tax Credit Fund.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2017, a credit equal to a certain percentage of a contribution to the College Access Tax Credit Fund for specified education purposes, as provided.
This bill would extend the allowance of these credits to taxable years beginning before January 1, 2018.
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 17053.86 of the Revenue and Taxation
2Code is amended to read:
(a) (1) Forbegin insert eachend insert taxablebegin delete yearsend deletebegin insert yearend insert beginning on
4or after January 1, 2014, and before January 1,begin delete 2017,end deletebegin insert 2018,end insert there
5shall be allowed as a credit against the “net tax,” as defined in
6Section 17039, an amount equal to the following:
7(A) For each taxable year
beginning on and after January 1,
82014, and before January 1,begin delete 2015,end deletebegin insert 2016,end insert 60 percent of the amount
P2 1contributed by the taxpayer for the 2014 begin insertor 2015 end inserttaxable year to
2the College Access Tax Credit Fund, as allocated and certified by
3the California Educational Facilities Authority.
4(B) For each taxable year beginning on and after January 1,
5begin delete 2015,end deletebegin insert 2016,end insert and before January 1,begin delete 2016,end deletebegin insert
2017,end insert 55 percent of the
6amount contributed by the taxpayer for thebegin delete 2015end deletebegin insert 2016end insert taxable year
7to the College Access Tax Credit Fund, as allocated and certified
8by the California Educational Facilities Authority.
9(C) For each taxable year beginning on and after January 1,
10begin delete 2016,end deletebegin insert 2017,end insert and before January 1,begin delete 2017,end deletebegin insert 2018,end insert 50 percent of the
11amount contributed by the
taxpayer for thebegin delete 2016end deletebegin insert 2017end insert taxable year
12to the College Access Tax Credit Fund, as allocated and certified
13by the California Educational Facilities Authority.
14(2) Contributions shall be made only in cash.
15(b) (1) The aggregate amount of credit that may be allocated
16and certified pursuant to this section and Section 23686 shall be
17an amount equal to the sum of all of the following:
18(A) Five hundred million dollars ($500,000,000) in credits for
19the 2014 calendar year and each calendar year thereafter.
20(B) The amount of previously unallocated and
uncertified
21credits.
22(2) (A) For purposes of this section, the California Educational
23Facilities Authority shall do all of the following:
24(i) On or after January 1, 2014, and before January 1,begin delete 2017,end delete
25begin insert 2018,end insert allocate and certify tax credits to taxpayers under this section.
26(ii) Establish a procedure for taxpayers to contribute to the
27College Access Tax Credit Fund and to obtain from the California
28Educational Facilities Authority a certification for the credit
29allowed by this section. The procedure shall require the California
30Educational Facilities Authority to certify the contribution amount
31eligible for
credit within 45 days following receipt of the
32contribution.
33(iii) Provide to the Franchise Tax Board a copy of each credit
34certificate issued for the calendar year by March 1 of the calendar
35year immediately following the year in which those certificates
36are issued.
37(B) (i) The California Educational Facilities Authority shall
38adopt any regulations necessary to implement this paragraph.
39(ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
40Division 3 of Title 2 of the Government Code does not apply to
P3 1any regulation adopted by the California Educational Facilities
2Authority pursuant to clause (i).
3(c) (1) In the case where the credit allowed by this section
4exceeds the “net tax,” the excess may be
carried over to reduce
5the “net tax” in the following year, and succeeding five years if
6necessary, until the credit is exhausted.
7(2) A deduction shall not be allowed under this part for amounts
8taken into account under this section in calculating the credit
9allowed by this section.
10(d) (1) The College Access Tax Credit Fund is hereby created
11as a special fund in the State Treasury. All revenue in this special
12fund shall be allocated as follows:
13(A) First to the General Fund in an amount equal to the
14aggregate amount of certified credits allowed pursuant to this
15section and Section 23686 for the taxable year. Funds allocated to
16the General Fund shall be considered General Fund revenues for
17purposes of Sections 8 and 8.5 of Article XVI of the California
18Constitution.
19(B) Second, upon appropriation, as follows:
20(i) To the Franchise Tax Board, the California Educational
21Facilities Authority, the Controller, and the Student Aid
22Commission for reimbursement of all administrative costs incurred
23by those agencies in connection with their duties under this section,
24Section 23686, and Section 69432.7 of the Education Code.
25(ii) To the Student Aid Commission for purposes of awarding
26Cal Grants to students pursuant to Section 69431.7 of the Education
27Code.
28(2) The tax credit allowed by subdivision (a) of this section and
29subdivision (a) of Section 23686 for donations to the College
30Access Tax Credit Fund shall be known as the College Access
31Tax Credit.
32(e) This
section shall remain in effect only until December 1,
33begin delete 2017,end deletebegin insert
2018,end insert and as of that date is repealed.
Section 23686 of the Revenue and Taxation Code is
35amended to read:
(a) (1) For each taxable year beginning on or after
37January 1, 2014, and before January 1,begin delete 2017,end deletebegin insert 2018,end insert there shall be
38allowed as a credit against the “tax,” as defined in Section 23036,
39an amount equal to the following:
P4 1(A) Forbegin delete taxable yearsend deletebegin insert each taxable yearend insert beginning on and after
2January 1, 2014, and before January 1,begin delete 2015,end deletebegin insert
2016,end insert 60 percent of
3the amount contributed by the taxpayer for the 2014begin insert
or 2015end insert
4 taxable year to the College Access Tax Credit Fund, as allocated
5and certified by the California Educational Facilities Authority.
6(B) Forbegin delete taxable yearsend deletebegin insert each taxable yearend insert beginning on and after
7January 1,begin delete 2015,end deletebegin insert 2016,end insert and before January 1,begin delete 2016,end deletebegin insert 2017,end insert 55
8percent of the amount contributed by the taxpayer for thebegin delete 2015end delete
9begin insert
2016end insert taxable year to the College Access Tax Credit Fund, as
10allocated and certified by the California Educational Facilities
11Authority.
12(C) Forbegin delete taxable yearsend deletebegin insert each taxable yearend insert beginning on and after
13January 1,begin delete 2016,end deletebegin insert 2017,end insert and before January 1,begin delete 2017,end deletebegin insert2018,end insert 50 percent
14of the amount contributed by the taxpayer for thebegin delete 2016end deletebegin insert
2017end insert
15 taxable year to the College Access Tax Credit Fund, as allocated
16and certified by the California Educational Facilities Authority.
17(2) Contributions shall be made only in cash.
18(b) (1) The aggregate amount of credit that may be allocated
19and certified pursuant to this section and Section 17053.86 shall
20be an amount equal to the sum of all of the following:
21(A) Five hundred million dollars ($500,000,000)begin insert in creditsend insert for
22the 2014 calendar year and each calendar year thereafter.
23(B) The amount of previously unallocated and uncertified
24credits.
25(2) (A) For purposes of this section, the California Educational
26Facilities Authority shall do all of the following:
27(i) On or after January 1, 2014, and before January 1,begin delete 2017,end delete
28begin insert 2018,end insert allocate and certify tax credits to taxpayers under this section.
29(ii) Establish a procedure for taxpayers to contribute to the
30College Access Tax Credit Fund and to obtain from the California
31Educational Facilities Authority a certification for the credit
32allowed by this section. The procedure shall require the California
33Educational Facilities Authority to certify the contribution amount
34eligible for credit within 45 days
following receipt of the
35contribution.
36(iii) Provide to the Franchise Tax Board a copy of each credit
37certificate issued for the calendar year by March 1 of the calendar
38year immediately following the year in which those certificates
39are issued.
P5 1(B) (i) The California Educational Facilities Authority shall
2adopt any regulations necessary to implement this paragraph.
3(ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
4Division 3 of Title 2 of the Government Code does not apply to
5any regulation adopted by the California Educational Facilities
6Authority pursuant to clause (i).
7(c) (1) In the case where the credit allowed by this section
8exceeds the “tax,” the excess may be carried over to reduce the
9
“tax” in the following year, and succeeding five years if necessary,
10until the credit is exhausted.
11(2) A deduction shall not be allowed under this part for amounts
12taken into account under this section in calculating the credit
13allowed by this section.
14(d) This section shall remain in effect only until December 1,
15begin delete 2017,end deletebegin insert 2018,end insert and as of that date is repealed.
This act provides for a tax levy within the meaning of
17Article IV of the Constitution and shall go into immediate effect.
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