BILL NUMBER: AB 2582 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Nestande
FEBRUARY 24, 2012
An act to add Sections 17053.83, 23683, and 23684 to the
Revenue and Taxation Code, relating to taxation , to take
effect immediately, tax levy .
LEGISLATIVE COUNSEL'S DIGEST
AB 2582, as amended, Nestande. Income taxes: credit:
contributions: educational organizations.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill would state the Legislature's intent to enact
legislation that would allow a credit against the taxes
imposed under the Personal Income Tax Law and the Corporation Tax Law
for monetary contributions to an educational
improvement organization or to a public school for
support of cocurricular activities or to an educational improvement
organization that supports innovative programs in public
schools, as specified, and would allow a credit against the taxes
imposed under the Corporation Tax Law for contributions to an
education scholarship-granting organization, as specified.
This bill would take effect immediately as a tax levy.
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 17053.83 is added to the
Revenue and Taxation Code , to read:
17053.83. (a) (1) There shall be allowed as a credit against the
"net tax," as defined in Section 17039, an amount equal to the
monetary amount contributed during the taxable year by a taxpayer to
a public school for support of cocurricular activities or to an
educational improvement organization that supports innovative
programs in public schools.
(2) The maximum amount of credit allowed under this section per
taxable year is as follows:
(A) Five hundred dollars ($500) for a person making a separate
return.
(B) One thousand dollars ($1,000) for persons making a joint
return.
(b) For purposes of this section, the following definitions shall
apply:
(1) "Cocurricular activities" means activities for students that
are optional, noncredit educational activities that supplement
education, including, but not limited to, career and technical
education, gifted programs, athletics, visual and performing arts,
classroom enrichment, educational field trips, outdoor education, and
tutoring. For purposes of this section, "support of cocurricular
activities" does not include administrative or overhead costs.
(2) "Educational improvement organization" or "EIO" means an
organization that meets all of the following:
(A) Is an organization that is exempt from federal income tax as
an organization described in Section 501(c)(3) of the Internal
Revenue Code.
(B) Is an organization that contributes at least 80 percent of the
contributions that it receives during a taxable year as grants to a
public school for innovative programs. Grants may include cash
payments to public schools to carry on innovative programs and may
include costs incurred by the EIO in providing innovative programs
to, or in conjunction with, public schools.
(3) "Innovative program" means a program that meets all of the
following:
(A) Is an advanced academic or similar program that is not part of
the regular program of a public school, but enhances the curriculum
of the public school.
(B) Is targeted towards supporting innovative programs in science,
technology, engineering, and math (STEM) literacy, and the arts for
public schools.
(C) Provides creative focus, delivery, including Internet-based
and distance learning technologies, methodology, or skill training
that is different than the academic program of the school.
(4) "Public school" means a public school, including a charter
school, that provides instruction in kindergarten and grades 1
through 12, inclusive. For purposes of this section, the amount
contributed for cocurricular activities must be made directly to the
public school or public schools of the taxpayer's choice.
(c) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and the succeeding four years if necessary,
until the credit is exhausted.
(d) The total amount of credit allowed under this section and
Section 23683 shall not exceed five hundred million dollars
($500,000,000). However, this amount may increase by 25 percent in
any taxable year after 90 percent of the total amount of credit
allowed under this subdivision, as adjusted, has been allowed.
(e) The credit under this section shall be in addition to any
deduction under this part to which the taxpayer may be entitled.
(f) The Franchise Tax Board shall promulgate rules and regulations
as necessary or appropriate to implement this section.
SEC. 2. Section 23683 is added to the
Revenue and Taxation Code , to read:
23683. (a) (1) There shall be allowed as a credit against the
"tax," as defined in Section 23036, an amount equal to the monetary
amount contributed during the taxable year by a taxpayer to a public
school for support of cocurricular activities or to an educational
improvement organization that supports innovative programs in public
schools.
(2) The maximum amount of credit allowed under this section per
taxable year is as follows:
(A) Fifty percent of the total tax liability of a taxpayer for the
taxable year under this part, before allowance of any credit under
this section, not to exceed three hundred thousand dollars
($300,000).
(B) Notwithstanding subparagraph (A), for contributions made after
the effective date of this section, up to 75 percent of the total
tax liability of a taxpayer for the taxable year under this part,
before allowance of any credit under this section, if the amount
contributed in the preceding taxable year and current taxable year
are at least an amount that is 80 percent of the amount contributed
in the taxable year two years prior to the current taxable year, not
to exceed three hundred thousand dollars ($300,000).
(b) For purposes of this section, the following definitions shall
apply:
(1) "Cocurricular activities" means activities for students that
are optional, noncredit educational activities that supplement
education, including, but not limited to, career and technical
education, gifted programs, athletics, visual and performing arts,
classroom enrichment, educational field trips, outdoor education, and
tutoring. For purposes of this section, "support of cocurricular
activities" does not include administrative or overhead costs.
(2) "Educational improvement organization" or "EIO" means an
organization that meets all of the following:
(A) Is an organization that is exempt from federal income tax as
an organization described in Section 501(c)(3) of the Internal
Revenue Code.
(B) Is an organization that contributes at least 80 percent of the
contributions that it receives during a taxable year as grants to a
public school for innovative programs. Grants may include cash
payments to public schools to carry on innovative programs and may
include costs incurred by the EIO in providing innovative programs
to, or in conjunction with, public schools.
(3) "Innovative program" means a program that meets all of the
following:
(A) Is an advanced academic or similar program that is not part of
the regular program of a public school, but enhances the curriculum
of the public school.
(B) Is targeted towards supporting innovative programs in science,
technology, engineering, and math (STEM) literacy, and the arts for
public schools.
(C) Provides creative focus, delivery, including Internet-based
and distance learning technologies, methodology, or skill training
that is different than the academic program of the school.
(4) "Public school" means a public school, including a charter
school, that provides instruction in kindergarten and grades 1
through 12, inclusive. For purposes of this section, the amount
contributed for cocurricular activities must be made directly to the
public school or public schools of the taxpayer's choice.
(c) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the succeeding four years if necessary, until the
credit is exhausted.
(d) The total amount of credit allowed under this section and
Section 17053.83 shall not exceed five hundred million dollars
($500,000,000). However, this amount may increase by 25 percent in
any taxable year after 90 percent of the total amount of credit
allowed under this subdivision, as adjusted, has been allowed.
(e) The credit under this section shall be in addition to any
deduction under this part to which the taxpayer may be entitled.
(f) The Franchise Tax Board shall promulgate rules and regulations
as necessary or appropriate to implement this section.
SEC. 3. Section 23684 is added to the
Revenue and Taxation Code , to read:
23684. (a) (1) There shall be allowed as a credit against the
"tax," as defined in Section 23036, an amount equal to the monetary
amount contributed during the taxable year by a taxpayer to an
education scholarship granting organization that provides qualified
tuition assistance to qualified students from moderate- to low-income
families who attend a qualified school.
(2) The maximum amount of credit allowed under this section per
taxable year is as follows:
(A) Fifty percent of the total tax liability of a taxpayer for the
taxable year under this part, before allowance of any credit under
this section, not to exceed three hundred thousand dollars
($300,000).
(B) Notwithstanding subparagraph (A), for contributions made after
the effective date of this section, 75 percent of the total tax
liability of a taxpayer for the taxable year under this part, before
allowance of any credit under this section, if the amount contributed
in the preceding taxable year and current taxable year are at least
an amount that is 80 percent of the amount contributed in the taxable
year two years prior to the current taxable year, not to exceed
three hundred thousand dollars ($300,000).
(c) For purposes of this section, the following definitions shall
apply:
(1) "Education scholarship granting organization" or "SGO" means
an organization that meets all of the following conditions:
(A) Is an organization that is exempt from federal income tax as
an organization described in Section 501(c)(3) of the Internal
Revenue Code.
(B) Uses at least 97 percent of amounts contributed during the
taxable year for education scholarships, or 100 percent of amounts
contributed during the taxable year for education scholarships if the
organization has less than three years of audits.
(C) Makes scholarships available for more than one school.
(D) Submits to the state the following:
(i) A financial and compliance audit performed by a certified
public accountant.
(ii) Quarterly reports on the number of scholarships to recipients
and the participating schools.
(2) "Qualified school" means a school that meets all of the
following:
(A) Is accredited.
(B) Complies with the Health and Safety Code.
(C) Complies with federal nondiscrimination requirements.
(D) Requires teachers and other school personnel to have a
background check.
(E) Requires scholarship students to take a nationally recognized
norm-referenced test or the state public school assessment.
(F) Posts standardized test scores.
(G) Provides financial reporting to the state.
(H) If the school is in operation for less than three years,
obtains a surety bond or letter of credit in an amount equal to the
value of the scholarship payments for one quarter.
(3) "Qualified student" means an individual who meets all of the
following conditions:
(A) Family income does not exceed 300 percent of federal poverty
guidelines.
(B) Attended public school in the preceding school year or is
entering kindergarten or first grade.
(C) Is in kindergarten or in grades 1 to 12, inclusive.
(D) "Qualified tuition" means that amount that is 65 percent of
the basic state per pupil funding, or selected school's tuition and
fees, whichever is less.
(d) The total amount of credit allowed under this section shall
not exceed five hundred million dollars ($500,000,000). However, this
amount may increase by 25 percent in any taxable year after 90
percent of the total amount of credit allowed under this subdivision,
as adjusted, has been allowed.
(e) The Franchise Tax Board shall promulgate rules and regulations
as necessary or appropriated to implement this section.
SEC. 4. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. (a) It is the intent of the
Legislature to enact legislation that would allow a credit against
the taxes imposed under the Personal Income Tax Law for monetary
contributions to a public school for support of cocurricular
activities or to an educational improvement organization (EIO) to
support innovative programs in science, technology, engineering, and
math (STEM), literacy, and arts for kindergarten and grades 1 through
12, inclusive.
(b) It is also the intent of the Legislature to enact legislation
that would allow a credit against the taxes imposed under the
Corporation Tax Law for contributions to an education
scholarship-granting organization (SGO) that provides tuition
assistance to students in kindergarten and grades 1 through 12,
inclusive, from moderate- to low- income families.