BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Lois Wolk, Chair
AB 347 - Bass
Amended: January 27, 2010
Hearing: February 11, 2010 Tax Levy Fiscal: Yes
SUBJECT: Conforms California law to the recently enacted
federal law and to encourage contributions to
assist Haiti by allowing the option of deducting
the contribution on either the 2009 or 2010 state
tax return.
EXISTING LAW
Generally under federal and state law, individual taxpayers
who itemize deductions may deduct eligible charitable
contributions from their income for the taxable year in
which the contributions were made. Corporations are also
allowed to deduct eligible charitable contributions from
income for the taxable year in which the contributions are
made.
Congress passed and the President signed Public Law (PL)
111-126 to allow a taxpayer, whether an individual or a
corporation, that makes a contribution after January 11,
2010, and before March 1, 2010, to Haiti earthquake relief
efforts the option to treat the contribution as if it was
made during 2009, and not in 2010.
THIS BILL
Conforms to federal law by allowing taxpayers that made
contributions after January 11, 2010, and before March 1,
AB 347-Bass
Page 2
2010, to Haiti earthquake relief efforts the option of
treating those contributions as if they were made on
December 31, 2009, and not in 2010, thereby allowing
taxpayers to accelerate the tax benefits of making a cash
contribution to these victims.
FISCAL EFFECT:
Franchise Tax Board estimates that AB 347 results in
revenue losses of $80,000 in 2010-11.
COMMENTS:
A. Purpose of the bill
This bill allows people that contributed to Haiti
earthquake relief efforts to deduct the taxes in the 2009
tax year as allowed under federal law. As the 2010 tax
filing season has begun, it is imperative that the
Legislature enact a bill as soon as possible so that
taxpayers and practitioners have clear guidance on how to
treat cash contributions of Haiti earthquake relief and do
not have to adjust their state and federal taxes.
Support and Opposition
Support:Spidell Publishing, Inc.
---------------------------------
AB 347-Bass
Page 2
Consultant: Gayle Miller
02/10/10 16:54