SB 670, as amended, Jackson. Income taxes: credit: dependent care: child care.
(1) 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. That law provides that the amount of the state credit is a percentage of the allowable federal credit determined on the basis of the amount of federal adjusted gross income earned, as provided.
This bill, for taxable years beginning on or after January 1, 2016, would increase the amount of the applicable state credit percentage, as provided.
(2) The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on and after January 1, 2016, and before January 1, 2021, would allow a credit in the amount of 30% of the costs of startup expenses for child care programs, constructing a child care facility, providing child care information and referral services, and contributing to a qualified care plan, as defined. The bill would also require the Franchise Tax Board to report to the Legislature on the effectiveness of these credits, as specified.
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 17052.6 of the Revenue and Taxation
2Code is amended to read:
(a) For each taxable year beginning on or after
4January 1, 2000, there shall be allowed as a credit against the “net
5tax”, as defined in Section 17039, an amount determined in
6accordance with Section 21 of the Internal Revenue Code, relating
7to expenses for household and dependent care services necessary
8for gainful employment, except that the amount of the credit shall
9be a percentage, as provided in subdivision (b) of the allowable
10federal credit without taking into account whether there is a federal
11tax liability.
12(b) For the purposes of subdivision (a), the percentage of the
13allowable federal credit shall be determined as follows:
14(1) For taxable years beginning before January 1, 2003:
|
|
The percentage of |
|---|---|
|
$40,000 or less |
63% |
|
Over $40,000 but not over $70,000 |
53% |
|
Over $70,000 but not over $100,000 |
42% |
|
Over $100,000 |
0% |
23(2) For taxable years beginning on or after January 1, 2003, and
24before January 1, 2016:
|
|
The percentage of |
|---|---|
|
$40,000 or less |
50% |
|
Over $40,000 but not over $70,000 |
43% |
|
Over $70,000 but not over $100,000 |
34% |
|
Over $100,000 |
0% |
P3 1(3) For taxable years beginning on or after January 1, 2016:
|
|
The percentage of |
|---|---|
|
$40,000 or less |
63% |
|
Over $40,000 but not over $70,000 |
53% |
|
Over $70,000 but not over $100,000 |
42% |
|
Over $100,000 |
0% |
10(c) For purposes of this section, “adjusted gross income” means
11adjusted gross income as computed for purposes of paragraph (2)
12of subdivision (h) of Section 17024.5.
13(d) The credit authorized by this section shall be limited, as
14follows:
15(1) Employment-related expenses, within the meaning of Section
1621 of the Internal Revenue Code, relating to
expenses for household
17and dependent care services necessary for gainful employment,
18shall be limited to expenses for household services and care
19provided in this state.
20(2) Earned income, within the meaning of Section 21(d) of the
21Internal Revenue Code, relating to earned income limitation, shall
22be limited to earned income subject to tax under this part. For
23purposes of this paragraph, compensation received by a member
24of the armed forces for active services as a member of the armed
25forces, other than pensions or retired pay, shall be considered
26earned income subject to tax under this part, whether or not the
27member is domiciled in this state.
28(e) For purposes of this section, Section 21(b)(1) of the Internal
29Revenue Code, relating to a qualifying individual, is modified to
30additionally
provide that a child, as defined in Section begin delete 152(c)(3)end delete
31begin insert 152(f)(1)end insert of the Internal Revenue Code, relating to age
32requirements, shall be treated, for purposes of Section 152 of the
33Internal Revenue Code, relating to dependent defined, as applicable
34for purposes of this section, as receiving over one-half of his or
35her support during the calendar year from the parent having custody
36for a greater portion of the calendar year, that parent shall be treated
37as a “custodial parent,” within the meaning of Section 152(e) of
38the Internal Revenue Code, relating to special rule for divorced
39parents, etc., as applicable for purposes of this section, and the
40child shall be treated as abegin delete qualifying individual under Section begin insert
dependent
P4 121(b)(1) of the Internal Revenue Code, relating to qualifying
2individual, as applicable for purposes of this section,end delete
3who has not attained 13 years of age,end insert if both of the following
4apply:
5(1) The child receives over one-half of his or her support during
6the calendar year from his or her parents who never married each
7other and who lived apart at all times during the last six months
8of the calendar year.
9(2) The child is in the custody of one or both of his or her parents
10for more than one-half of the calendar year.
11(f) The amendments to this section made by Section 1.5 of
12Chapter 824 of the Statutes of 2002 shall apply only to taxable
13years beginning on or after January 1, 2002.
14(g) The amendments made to this section by
Chapter 14 of the
15Statutes of 2011 shall apply to taxable years beginning on or after
16January 1, 2011.
Section 17052.17 is added to the Revenue and Taxation
18Code, to read:
(a) For each taxable year beginning on or after
20January 1, 2016, and before January 1, 2021, there shall be allowed
21as a credit against the “net tax,” as defined by Section 17039, an
22amount equal to the amount determined in subdivision (b).
23(b) (1) The amount of the credit allowed by this section shall
24be 30 percent of any of the following:
25(A) The cost paid or incurred by the taxpayer on or after January
261, 2016, for the startup expenses of establishing a child care
27program or constructing a child care facility in California, to
be
28used primarily by the children of the taxpayer’s employees.
29(B) For each taxable year beginning on or after January 1, 2016,
30the cost paid or incurred by the taxpayer for startup expenses of
31establishing a child care program or constructing a child care
32facility in California, to be used primarily by the children of
33employees of tenants leasing commercial or office space in a
34building owned by the taxpayer.
35(C) (i) The cost paid or incurred by the taxpayer on or after
36January 1, 2016, for contributions to California child care
37information and referral services, including, but not limited to,
38those that identify local child care services, offer information
39describing these resources to the taxpayer’s employees,
and make
P5 1referrals of the taxpayer’s employees to child care services where
2there are vacancies.
3(ii) In the case of a child care facility established by two or more
4taxpayers, the credit shall be allowed to each taxpayer if the facility
5is to be used primarily by the children of the employees of each
6of the taxpayers or the children of the employees of the tenants of
7each of the taxpayers.
8(2) The amount of the credit allowed by this section shall not
9exceed fifty thousand dollars ($50,000) for a taxable year.
10(c) For purposes of this section, “startup expenses” include, but
11are not limited to, feasibility studies, site preparation, and
12construction,
renovation, or acquisition of facilities for purposes
13of establishing or expanding onsite or nearsite centers by one or
14more employers or one or more building owners leasing space to
15employers.
16(d) If two or more taxpayers share in the costs eligible for the
17credit provided by this section, each taxpayer shall be eligible to
18receive a tax credit with respect to his, her, or its respective share
19of the costs paid or incurred.
20(e) (1) In the case where the credit allowed and limited under
21subdivision (b) for the taxable year exceeds the “net tax,” the
22excess may be carried over to reduce the “net tax” in the following
23year, and succeeding years if necessary, until the credit has been
24exhausted. However, the
excess from any one year shall not exceed
25fifty thousand dollars ($50,000).
26(2) If the credit carryovers from preceding taxable years allowed
27under paragraph (1) plus the credit allowed for the taxable year
28under subdivision (b) would exceed an aggregate total of fifty
29thousand dollars ($50,000), then the credit allowed to reduce the
30“net tax” under this section for the taxable year shall be limited to
31fifty thousand dollars ($50,000) and the amount in excess of the
32fifty-thousand-dollar ($50,000) limit may be carried over and
33applied against the “net tax” in the following year, and succeeding
34years if necessary, in an amount which, when added to the credit
35allowed under subdivision (b) for that succeeding taxable year,
36does not exceed fifty thousand dollars ($50,000).
37(f) A deduction shall not be allowed as otherwise provided in
38this part for that portion of expenses paid or incurred for the taxable
39year which is equal to the amount of the credit allowed under this
40section attributable to those expenses.
P6 1(g) In lieu of claiming the tax credit provided by this section,
2the taxpayer may elect to take depreciation pursuant to Section
317250. In addition, the taxpayer may take depreciation pursuant
4to that section for the cost of a facility in excess of the amount of
5the tax credit claimed under this section.
6(h) The basis for any child care facility for which a credit is
7allowed shall be reduced by the amount of the credit attributable
8to the
facility. The basis adjustment shall be made for the taxable
9year for which the credit is allowed.
10(i) A credit shall not be allowed under subparagraph (B) of
11paragraph (1) of subdivision (b) in the case of any taxpayer that
12is required by any local ordinance or regulation to provide a child
13care facility.
14(j) (1) In order to be eligible for the credit allowed under
15subparagraph (A) or (B) of paragraph (1) of subdivision (b), the
16taxpayer shall submit to the Franchise Tax Board upon request a
17statement certifying that the costs for which the credit is claimed
18are incurred with respect to the startup expenses of establishing a
19child care program or constructing a child care facility in California
20to be used
primarily by the children of the taxpayer’s employees
21or the children of the employees of tenants leasing commercial or
22office space in a building owned by the taxpayer and which will
23be in operation for at least 60 consecutive months after completion.
24(2) If the child care center for which a credit is claimed pursuant
25to this section is disposed of or ceases to operate within 60 months
26after completion, that portion of the credit claimed which represents
27the remaining portion of the 60-month period shall be added to
28the taxpayer’s tax liability in the taxable year of that disposition
29or nonuse.
30(k) In order to be allowed the credit under subparagraph (A) or
31(B) of paragraph (1) of subdivision (b), the taxpayer shall indicate,
32
in the form and manner prescribed by the Franchise Tax Board,
33the number of children that the child care program or facility will
34be able to legally accommodate.
35(l) (1) On or before January 1, 2018, the Franchise Tax Board
36shall submit to the Legislature a report on the following:
37(A) The dollar amount of credits claimed annually.
38(B) The number of child care facilities established or constructed
39by taxpayers claiming the credit.
40(C) The number of children served by these facilities.
P7 1(2) The report to be submitted by paragraph (1) shall be
2submitted in compliance with Section 9795 of the Government
3Code.
4(3) Section 41 does not apply to the credit allowed by this
5section.
6(m) This section shall remain in effect only until December 1,
72021, and as of that date is repealed.
Section 17052.18 is added to the Revenue and Taxation
9Code, to read:
(a) For each taxable year beginning on or after
11January 1, 2016, and before January 1, 2021, there shall be allowed
12as a credit against the “net tax,” as defined by Section 17039, an
13amount equal to the amount determined in subdivision (b).
14(b) (1) The amount of the credit allowed by this section shall
15be 30 percent of the cost paid or incurred by the taxpayer for
16contributions to a qualified care plan made on behalf of any
17qualified dependent of the taxpayer’s qualified employee.
18(2) The amount of the credit allowed by this section
in any
19taxable year shall not exceed three hundred sixty dollars ($360)
20for each qualified dependent.
21(c) For purposes of this section:
22(1) “Qualified care plan” means a plan providing qualified care.
23(2) “Qualified care” includes, but is not limited to, onsite service,
24center-based service, in-home care or home-provider care, and a
25dependent care center as defined by Section 21(b)(2)(D) of the
26Internal Revenue Code that is a specialized center with respect to
27short-term illnesses of an employee’s dependents. “Qualified care”
28must be provided in this state under the authority of a license when
29required by California law.
30(3) “Specialized center” means a facility that provides care to
31mildly ill children and that may do all of the following:
32(A) Be staffed by pediatric nurses and day care workers.
33(B) Admit children suffering from common childhood ailments
34(including colds, flu, and chickenpox).
35(C) Make special arrangements for well children with minor
36problems associated with diabetes, asthma, breaks or sprains, and
37recuperation from surgery.
38(D) Separate children according to their illness and symptoms
39in order to
protect them from cross-infection.
P8 1(4) “Contributions” include direct payments to child care
2programs or providers. “Contributions” do not include amounts
3contributed to a qualified care plan pursuant to a salary reduction
4agreement to provide benefits under a dependent care assistance
5program within the meaning of Section 129 of the Internal Revenue
6Code, as applicable, for purposes of Part 11 (commencing with
7Section 23001) and this part.
8(5) “Qualified employee” means any employee of the taxpayer
9who is performing services for the taxpayer in this state, within
10the meaning of Section 25133, during the period in which the
11qualified care is performed.
12(6) “Employee” includes an individual who is an employee
13within the meaning of Section 401(c)(1) of the Internal Revenue
14Code, relating to self-employed individual treated as employee.
15(7) “Qualified dependent” means any dependent of a qualified
16employee who is under 12 years of age.
17(d) If an employer makes contributions to a qualified care plan
18and also collects fees from parents to support a child care facility
19owned and operated by the employer, a credit shall not be allowed
20under this section for contributions in the amount, if any, by which
21the sum of the contributions and fees exceed the total cost of
22providing care. The Franchise Tax Board may require information
23about fees collected from parents of children served
in the facility
24from taxpayers claiming credits under this section.
25(e) If the duration of the child care received is less than 42
26weeks, the employer shall claim a prorated portion of the allowable
27credit. The employer shall prorate the credit using the ratio of the
28number of weeks of care received divided by 42 weeks.
29(f) If the credit allowed by this section exceeds the “net tax,”
30the excess may be carried over to reduce the “net tax” in the
31following year, and succeeding years if necessary, until the credit
32has been exhausted.
33(g) The credit shall not be available to an employer if the care
34provided on behalf of an employee is provided by
an individual
35who:
36(1) Qualifies as a dependent of that employee or that employee’s
37spouse under subdivision (d) of Section 17054.
38(2) Is, within the meaning of Section 17056, a son, stepson,
39daughter, or stepdaughter of that employee and is under 19 years
40of age at the close of that taxable year.
P9 1(h) The contributions to a qualified care plan shall not
2discriminate in favor of employees who are officers, owners, or
3highly compensated, or their dependents.
4(i) A deduction shall not be allowed as otherwise provided in
5this part for that portion of expenses
paid or incurred for the taxable
6year that is equal to the amount of the credit allowed under this
7section.
8(j) If the credit is taken by an employer for contributions to a
9qualified care plan that is used at a facility owned by the employer,
10the basis of that facility shall be reduced by the amount of the
11credit. The basis adjustment shall be made for the taxable year for
12which the credit is allowed.
13(k) In order to be allowed the credit authorized under this
14section, the taxpayer shall indicate, in the form and manner
15prescribed by the Franchise Tax Board, the number of children of
16employers served by the qualified child care plan.
17(l) (1) On or before January 1, 2018, the Franchise Tax Board
18shall submit to the Legislature a report on the following:
19(A) The dollar amount of credits claimed annually.
20(B) The number of children of employees served by the qualified
21child care plan for which the taxpayer claimed a credit.
22(2) The report to be submitted by paragraph (1) shall be
23submitted in compliance with Section 9795 of the Government
24Code.
25(3) Section 41 does not apply to the credit allowed by this
26section.
27(m) This
section shall remain in effect only until December 1,
282021, and as of that date is repealed.
Section 23617 is added to the Revenue and Taxation
30Code, to read:
(a) For each taxable year beginning on or after January
321, 2016, and before January 1, 2021, there shall be allowed as a
33credit against the “tax,” as defined by Section 23036, an amount
34equal to the amount determined in subdivision (b).
35(b) (1) The amount of the credit allowed by this section shall
36be 30 percent of any of the following:
37(A) The cost paid or incurred by the taxpayer on or after January
381, 2016, for the startup expenses of establishing a child care
39program or constructing a child care facility in California, to be
40used
primarily by the children of the taxpayer’s employees.
P10 1(B) For each taxable year beginning on or after January 1, 2016,
2the cost paid or incurred by the taxpayer for startup expenses of
3establishing a child care program or constructing a child care
4facility in California to be used primarily by the children of
5employees of tenants leasing commercial or office space in a
6building owned by the taxpayer.
7(C) (i) The cost paid or incurred by the taxpayer on or after
8January 1, 2016, for contributions to California child care
9information and referral services, including, but not limited to,
10those that identify local child care services, offer information
11describing these resources to the taxpayer’s employees, and make
12referrals
of the taxpayer’s employees to child care services where
13there are vacancies.
14(ii) In the case of a child care facility established by two or more
15taxpayers, the credit shall be allowed to each taxpayer if the facility
16is to be used primarily by the children of the employees of each
17of the taxpayers or the children of the employees of the tenants of
18each of the taxpayers.
19(2) The amount of the credit allowed by this section shall not
20exceed fifty thousand dollars ($50,000) for a taxable year.
21(c) For purposes of this section, “startup expenses” include, but
22are not limited to, feasibility studies, site preparation, and
23construction, renovation,
or acquisition of facilities for purposes
24of establishing or expanding onsite or nearsite centers by one or
25more employers or one or more building owners leasing space to
26employers.
27(d) If two or more taxpayers share in the costs eligible for the
28credit provided by this section, each taxpayer shall be eligible to
29receive a tax credit with respect to its respective share of the costs
30paid or incurred.
31(e) (1) In the case where the credit allowed and limited under
32subdivision (b) for the taxable year exceeds the “tax,” the excess
33may be carried over to reduce the “tax” in the following year, and
34succeeding years if necessary, until the credit has been exhausted.
35However, the excess from any one year shall
not exceed fifty
36thousand dollars ($50,000).
37(2) If the credit carryovers from preceding taxable years allowed
38under paragraph (1) plus the credit allowed for the taxable year
39under subdivision (b) would exceed an aggregate total of fifty
40thousand dollars ($50,000), then the credit allowed to reduce the
P11 1“tax” under this section for the taxable year shall be limited to fifty
2thousand dollars ($50,000) and the amount in excess of the
3fifty-thousand-dollar ($50,000) limit may be carried over and
4applied against the “tax” in the following year, and succeeding
5years if necessary, in an amount which, when added to the credit
6allowed under subdivision (b) for that succeeding taxable year,
7does not exceed fifty thousand dollars ($50,000).
8(f) A deduction shall not be allowed as otherwise provided in
9this part for that portion of expenses paid or incurred for the taxable
10year which is equal to the amount of the credit allowed under this
11section attributable to those expenses.
12(g) The basis for any child care facility for which a credit is
13
allowed shall be reduced by the amount of the credit attributable
14to the facility. The basis adjustment shall be made for the taxable
15year for which the credit is allowed.
16(h) A credit shall not be allowed under subparagraph (B) of
17paragraph (1) of subdivision (b) in the case of any taxpayer that
18is required by any local ordinance or regulation to provide a child
19care facility.
20(i) (1) In order to be eligible for the credit allowed under
21subparagraph (A) or (B) of paragraph (1) of subdivision (b), the
22taxpayer shall submit to the Franchise Tax Board upon request a
23statement certifying that the costs for which the credit is claimed
24are incurred with respect to the startup expenses of establishing a
25
child care program or constructing a child care facility in California
26to be used primarily by the children of the taxpayer’s employees
27or the children of the employees of tenants leasing commercial or
28office space in a building owned by the taxpayer and which will
29be in operation for at least 60 consecutive months after completion.
30(2) If the child care center for which a credit is claimed pursuant
31to this section is disposed of or ceases to operate within 60 months
32after completion, that portion of the credit claimed which represents
33the remaining portion of the 60-month period shall be added to
34the taxpayer’s tax liability in the taxable year of that disposition
35or nonuse.
36(j) In order to be allowed the credit under
subparagraph (A) or
37(B) of paragraph (1) of subdivision (b), the taxpayer shall indicate,
38in the form and manner prescribed by the Franchise Tax Board,
39the number of children that the child care program or facility will
40be able to legally accommodate.
P12 1(k) (1) On or before January 1, 2018, the Franchise Tax Board
2shall submit to the Legislature a report on the following:
3(A) The dollar amount of credits claimed annually.
4(B) The number of child care facilities established or constructed
5by taxpayers claiming the credit.
6(C) The number of children served by these facilities.
7(2) The report to be submitted by paragraph (1) shall be
8submitted in compliance with Section 9795 of the Government
9Code.
10(3) Section 41 does not apply to the credit allowed by this
11section.
12(l) This section shall remain in effect only until December 1,
132021, and as of that date is repealed.
Section 23618 is added to the Revenue and Taxation
15Code, to read:
(a) For each taxable year beginning on or after January
171, 2016, and before January 1, 2021, there shall be allowed as a
18credit against the “tax,” as defined by Section 23036, an amount
19equal to the amount determined in subdivision (b).
20(b) (1) The amount of the credit allowed by this section shall
21be 30 percent of the cost paid or incurred by the taxpayer for
22contributions to a qualified care plan made on behalf of any
23qualified dependent of the taxpayer’s qualified employee.
24(2) The amount of the credit allowed by this section in any
25taxable
year shall not exceed three hundred sixty dollars ($360)
26
for each qualified dependent.
27(c) For purposes of this section:
28(1) “Qualified care plan” means a plan providing qualified care.
29(2) “Qualified care” includes, but is not limited to, onsite service,
30center-based service, in-home care or home-provider care, and a
31dependent care center as defined by Section 21(b)(2)(D) of the
32Internal Revenue Code that is a specialized center with respect to
33short-term illnesses of an employee’s dependents. “Qualified care”
34must be provided in this state under the authority of a license when
35required by California law.
36(3) “Specialized center” means a facility that provides care to
37mildly ill children and that may do all of the following:
38(A) Be staffed by pediatric nurses and day care workers.
39(B) Admit children suffering from common childhood ailments
40(including colds, flu, and chickenpox).
P13 1(C) Make special arrangements for well children with minor
2problems associated with diabetes, asthma, breaks or sprains, and
3recuperation from surgery.
4(D) Separate children according to their illness and symptoms
5in order to protect them from cross-infection.
6(4) “Contributions” include direct payments to child care
7programs or providers. “Contributions” do not include amounts
8contributed to a qualified care plan pursuant to a salary reduction
9agreement to provide benefits under a dependent care assistance
10program within the meaning of Section 129 of the Internal Revenue
11Code, as applicable, for purposes of Part 10 (commencing with
12Section 17001) and this part.
13(5) “Qualified employee” means any employee of the taxpayer
14who is performing services for the taxpayer in this state, within
15the meaning of Section 25133, during the period in which the
16qualified care is performed.
17(6) “Employee” includes an individual who is an
employee
18within the meaning of Section 401(c)(1) of the Internal Revenue
19Code, relating to self-employed individual treated as employee.
20(7) “Qualified dependent” means any dependent of a qualified
21employee who is under 12 years of age.
22(d) If an employer makes contributions to a qualified care plan
23and also collects fees from parents to support a child care facility
24owned and operated by the employer, a credit shall not be allowed
25under this section for contributions in the amount, if any, by which
26the sum of the contributions and fees exceed the total cost of
27providing care. The Franchise Tax Board may require information
28about fees collected from parents of children served in the facility
29from taxpayers claiming credits
under this section.
30(e) If the duration of the child care received is less than 42
31weeks, the employer shall claim a prorated portion of the allowable
32credit. The employer shall prorate the credit using the ratio of the
33number of weeks of care received divided by 42 weeks.
34(f) If the credit allowed under this section exceeds the “tax,”
35the excess may be carried over to reduce the “tax” in the following
36year, and succeeding years if necessary, until the credit has been
37exhausted.
38(g) The credit shall not be available to an employer if the care
39provided on behalf of an employee is provided by an individual
40who:
P14 1(1) Qualifies as a dependent of that employee or that employee’s
2spouse under subdivision (d) of Section 17054.
3(2) Is, within the meaning of Section 17056, a son, stepson,
4daughter, or stepdaughter of that employee and is under 19 years
5of age at the close of that taxable year.
6(h) The contributions to a qualified care plan shall not
7discriminate in favor of employees who are officers, owners, or
8highly compensated, or their dependents.
9(i) A deduction shall not be allowed as otherwise provided in
10this part for that portion of expenses paid or incurred for the taxable
11year that is
equal to the amount of the credit allowed under this
12section.
13(j) If the credit is taken by an employer for contributions to a
14qualified care plan that is used at a facility owned by the employer,
15the basis of that facility shall be reduced by the amount of the
16credit. The basis adjustment shall be made for the taxable year for
17which the credit is allowed.
18(k) In order to be allowed the credit authorized under this
19section, the taxpayer shall indicate, in the form and manner
20prescribed by the Franchise Tax Board, the number of children of
21employers served by the qualified child care plan.
22(l) (1) On or before January 1,
2018, the Franchise Tax Board
23shall submit to the Legislature a report on the following:
24(A) The dollar amount of credits claimed annually.
25(B) The number of children of employees served by the qualified
26child care plan for which the taxpayer claimed a credit.
27(2) The report to be submitted by paragraph (1) shall be
28submitted in compliance with Section 9795 of the Government
29Code.
30(3) Section 41 does not apply to the credit allowed by this
31section.
32(m) This section shall remain in effect only until December 1,
332021,
and as of that date is repealed.
This act provides for a tax levy within the meaning of
35Article IV of the Constitution and shall go into immediate effect.
O
97