BILL NUMBER: SB 472 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Cannella
FEBRUARY 26, 2015
An act to amend Section 17052.6 of the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 472, as introduced, Cannella. Income tax credit: child and
dependent care expenses.
The Personal Income Tax Law allows various credits against the
taxes imposed by that law, including a credit, in modified conformity
to a credit allowed by federal income tax laws, in an amount equal
to specified percentages of allowable federal credit for
employment-related child and dependent care expenses.
This bill would make technical, nonsubtsantive changes to these
provisions.
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 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, limited as follows:
(1) Employment-related expenses, within the meaning of Section 21
of the Internal Revenue Code, 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, 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
Armed Forces for active services as a member of the
armed forces, 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) of
the Internal Revenue Code, shall be treated, for purposes of Section
152 of the Internal Revenue Code, 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, 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, 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) 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) 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.