BILL NUMBER: AB 480	CHAPTERED  07/10/00

	CHAPTER   114
	FILED WITH SECRETARY OF STATE   JULY 10, 2000
	APPROVED BY GOVERNOR   JULY 7, 2000
	PASSED THE SENATE   JUNE 22, 2000
	PASSED THE ASSEMBLY   JUNE 22, 2000
	AMENDED IN SENATE   JUNE 22, 2000
	AMENDED IN SENATE   SEPTEMBER 3, 1999
	AMENDED IN SENATE   AUGUST 31, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 7, 1999
	AMENDED IN ASSEMBLY   APRIL 13, 1999

INTRODUCED BY   Assembly Member Ducheny

                        FEBRUARY 18, 1999

   An act to amend Section 17052.6 of the Revenue and Taxation Code,
relating to taxation, and making an appropriation therefor, to take
effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 480, Ducheny.   Personal income tax.
   Existing federal law authorizes a credit for household and
dependent care expenses necessary for gainful employment, as
provided.
   This bill would allow a similar, refundable credit under the
Personal Income Tax Law.
   The Tax Relief and Refund Account in the General Fund is
continuously appropriated to make all payments required to be made to
taxpayers or other persons, as specified.
   By authorizing a new, refundable income tax credit to be paid from
that account, this bill would make an appropriation.
   This bill would take effect immediately as a tax levy.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 17052.6 is added to the Revenue and Taxation
Code, 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, 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:


                                                    The percentage of

   If the California adjusted gross income is:          credit is:
$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%

   (c) In the case of a taxpayer whose credits provided under this
section exceed the taxpayer's tax liability computed under this part,
the excess shall be credited against other amounts due, if any, from
the taxpayer and the balance, if any, shall be paid from the Tax
Relief and Refund Account and refunded to the taxpayer.
   (d) For purposes of this section, California adjusted gross income
means California adjusted gross income as computed for purposes of
Section 17041.
   (e) The credit authorized by this section shall be limited to
those taxpayers who, during the taxable year, maintain a household,
within the meaning of Section 21(e)(1) of the Internal Revenue Code,
that is located within this state.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.