BILL NUMBER: AB 2171	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 18, 2010

    An act to amend Section 23040 of the Revenue and Taxation
Code, relating to taxation.   An act to add Section 39
to the Revenue and Taxation Code, relating   to taxation.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 2171, as amended, Charles Calderon.  Corporate income
tax.   Tax benefits.  
   Existing law imposes various taxes and allows specified credits,
deductions, exclusions, and exemptions in computing those taxes.
 
   This bill would condition the allowance of a tax benefit
established in a statute that takes effect on or after January 1,
2011, on the allowable amount of that tax benefit being determined in
a separate statute, as provided, and the tax benefit shall be paid
pursuant to an annual appropriation by the Legislature for that
purpose.  
   The Corporation Tax Law imposes a tax according to, or measured
by, income derived from or attributable to sources within this state.
 
   This bill would make technical, nonsubstantive changes to the
definition of income. 
   Vote: majority. Appropriation: no. Fiscal committee: no
  yes  . State-mandated local program: no.


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

   SECTION 1.    Section 39 is added to the  
Revenue and Taxation Code   , to read:  
   39.  (a) The allowance of any tax benefit established in a statute
that takes effect on or after January 1, 2011, is subject to both of
the following:
   (1) For each calendar year or any portion thereof to which it
pertains, the tax benefit shall be allowed to each eligible taxpayer
only in that amount, equal to or less than the amount of that benefit
as established in statute, that is annually determined in a separate
statute to be consistent with the ability of state government to
meet its expenditure obligations under law. A tax benefit established
in a statute that takes effect on or after January 1, 2011, is not
allowed for any year until the allowable amount of that tax benefit
is determined in a separate statute in accordance with this
subdivision.
   (2) In the amount determined to be allowable in accordance with
subdivision (a), a tax benefit established in a statute that takes
effect on or after January 1, 2011, shall be paid to each taxpayer
pursuant to an annual appropriation made by the Legislature for that
purpose.
   (b) For purposes of this section, "tax benefit" means a credit,
deduction, exclusion, exemption, or other tax advantage to a person
that has the effect of reducing the person's tax liability to the
state.  
  SECTION 1.   Section 23040 of the Revenue and
Taxation Code is amended to read:
   23040.  Income derived from or attributable to sources within this
state includes income from tangible or intangible property located
or having a situs in this State and income from any activities
carried on in this state, regardless of whether carried on in
intrastate, interstate or foreign commerce.