BILL NUMBER: AB 2295	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Fletcher

                        FEBRUARY 24, 2012

   An act to amend Sections 17201 and 24357 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2295, as introduced, Fletcher. Income taxes: deduction:
charitable contributions.
   The Personal Income Tax Law and the Corporation Tax Law, in
specified conformity to federal income tax laws, allow a deduction
for charitable contributions, as defined, made during the taxable
year.
   This bill would make technical, nonsubstantive changes to those
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 17201 of the Revenue and Taxation Code is
amended to read:
   17201.  (a) Part VI of Subchapter B of Chapter 1 of Subtitle A of
the Internal Revenue Code, relating to itemized deductions for
individuals and corporations, shall apply, except as 
otherwise  provided.
   (b) Part VII of Subchapter B of Chapter 1 of Subtitle A of the
Internal Revenue Code, relating to additional itemized deductions for
individuals, shall apply, except as  otherwise 
provided.
   (c) Part IX of Subchapter B of Chapter 1 of Subtitle A of the
Internal Revenue Code, relating to items not deductible, shall apply,
except as  otherwise  provided.
  SEC. 2.  Section 24357 of the Revenue and Taxation Code is amended
to read:
   24357.  (a) There shall be allowed as a deduction any charitable
contribution  (as   , as  defined in
Section  24359)   24359,  payment of which
is made within the taxable year. A charitable contribution shall be
allowable as a deduction only if verified under regulations
prescribed by the Franchise Tax Board.
   (b) (1) In the case of a corporation reporting its income on the
accrual basis, the corporation may elect to treat the contribution as
paid during that taxable year if both of the following occur:
   (A) The board of directors authorizes a charitable contribution
during the taxable year.
   (B) Payment of the contribution is made after the close of that
taxable year and on or before the 15th day of the third month
following the close of the taxable year.
   (2) The election allowed by paragraph (1) may be made only at the
time of the filing of the return for the taxable year, and shall be
signified in the manner as the Franchise Tax Board shall by
regulations prescribe.
   (c) For purposes of this section, payment of a charitable
contribution that consists of a future interest in tangible personal
property shall be treated as made only when all intervening interests
in, and rights to the actual possession or enjoyment of, the
property have expired or are held by persons other than the taxpayer
or those standing in a relationship to the taxpayer described in
Section 24428. For purposes of the preceding sentence, a fixture
which is intended to be severed from the real property shall be
treated as tangible personal property.
   (d) No deduction shall be allowed under this section for traveling
expenses (including amounts expended for meals and lodging) while
away from home, whether paid directly or by reimbursement, unless
there is no significant element of personal pleasure, recreation, or
vacation in that travel.
   (e) (1) Section 170(f)(8) of the Internal Revenue Code, relating
to substantiation requirement for certain contributions, shall apply,
except as otherwise provided.
   (2) No deduction shall be denied under Section 170(f)(8) of the
Internal Revenue Code, relating to substantiation requirement for
certain contributions, upon a showing that the requirements in
Section 170(f)(8) of the Internal Revenue Code have been met with
respect to that contribution for federal purposes.
   (f) Section 170(f)(9) of the Internal Revenue Code, relating to
denial of deduction where contribution for lobbying activities, shall
apply, except as otherwise provided.
   (g) (1) Notwithstanding any other provision of law to the
contrary, for purposes of this section and Section 24341, Section 170
of the Internal Revenue Code, relating to charitable, etc.,
contributions and gifts, shall be applied to allow a taxpayer to
elect to treat any contribution described in paragraph (2) made in
January 2005, as if that contribution was made on December 31, 2004,
and not in January 2005.
   (2) A contribution is described in this paragraph if that
contribution is a cash contribution made for the relief of victims in
areas affected by the December 26, 2004, Indian Ocean tsunami for
which a charitable contribution deduction is allowable under this
section.
   (h) (1) Section 170(f)(11)(E) of the Internal Revenue Code,
relating to qualified appraisal and appraiser, shall apply, except as
otherwise provided.
   (2) This subdivision shall apply to appraisals prepared with
respect to returns or submissions filed on or after January 1, 2010.
   (i) (1) Section 170(f)(16) of the Internal Revenue Code, relating
to contributions of clothing and household items, shall apply, except
as otherwise provided.
   (2) This subdivision shall apply to contributions made on or after
January 1, 2010.
   (j) (1) Section 170(f)(17) of the Internal Revenue Code, relating
to recordkeeping, shall apply, except as otherwise provided.
   (2) This subdivision shall apply to contributions made on or after
January 1, 2010.
   (k) (1) Section 170(o) of the Internal Revenue Code, relating to
special rules for fractional gifts, shall apply, except as otherwise
provided.
   (2) This subdivision shall apply to contributions made on or after
January 1, 2010.