BILL NUMBER: SB 1356 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 29, 2012
AMENDED IN SENATE MAY 1, 2012
AMENDED IN SENATE APRIL 9, 2012
INTRODUCED BY Senator De León
FEBRUARY 24, 2012
An act to add and repeal Sections 17053.86 and 23686 of the
Revenue and Taxation Code, relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 1356, as amended, De León. Income taxes: credits: contributions
to education funds.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill, under both laws, for taxable years beginning on or
after January 1, 2013, and before January 1, 2016, would allow a
credit equal to a certain percentage of a contribution to the Higher
Education Investment Tax Credit Program Special Fund, established by
this bill, for the General Fund and specified education
purposes, as provided. This bill would specify that the aggregate
amount of credit that may be allocated under both laws shall not
exceed $500,000,000 $100,000,000 for
each calendar year, and would require the Treasurer to perform
certain duties with regard to allocating and certifying the tax
credits allowed under these provisions.
This bill would become operative only if SB 1466 of the 2011-12
Regular Session is enacted and takes effect on or before January 1,
2013.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17053.86 is added to the Revenue and Taxation
Code, to read:
17053.86. (a) (1) For each taxable year beginning on or after
January 1, 2013, and before January 1, 2016, there shall be allowed a
credit against the "net tax," as defined in Section 17039, an amount
equal to the following:
(A) For taxable years on and after January 1, 2013, and before
January 1, 2014, 60 percent of the amount contributed by the taxpayer
during the 2013 taxable year to the Higher Education Investment Tax
Credit Program Special Fund, as allocated and certified by the
Treasurer.
(B) For taxable years on and after January 1, 2014, and before
January 1, 2015, 55 percent of the amount contributed by the taxpayer
during the 2014 taxable year to the Higher Education Investment Tax
Credit Program Special Fund, as allocated and certified by the
Treasurer.
(C) For taxable years on and after January 1, 2015, and before
January 1, 2016, 50 percent of the amount contributed by the taxpayer
during the 2015 taxable year to the Higher Education Investment Tax
Credit Program Special Fund, as allocated and certified by the
Treasurer.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 23686 shall not exceed
five one hundred million dollars
($500,000,000) ($100,000,000) for the
2013 calendar year and five one hundred
million dollars ($500,000,000)
($100,000,000) for each calendar year thereafter.
(2) (A) For purposes of this section, the Treasurer shall do all
of the following:
(i) On or after January 1, 2013, and before January 1, 2016,
allocate and certify tax credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
Higher Education Investment Tax Credit Program Special Fund and to
obtain from the Treasurer a certification for the credit allowed by
this section.
(iii) On or after January 1, 2013, and before January 1, 2015,
notify the taxpayer within seven days of receipt of a contribution of
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five one hundred million dollar
($500,000,000) ($100,000,000) cap set
forth in paragraph (1) of subdivision (b) has been reached, the
Treasurer shall offer the taxpayer a choice between either the return
of the contribution or the receipt of the certification for the next
taxable year.
(iv) On or after January 1, 2015, and before January 1, 2016,
notify the taxpayer within seven days of receipt of a contribution,
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five one hundred million dollar
($500,000,000) ($100,000,000) cap set
forth in paragraph (1) of subdivision (b) has been reached, the
Treasurer shall offer the taxpayer the option of a return of all of
the contribution or the portion of the contribution that would be
limited, as applicable.
(v) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(3) (A) The determinations of the Franchise Tax Board with respect
to the disallowance of a credit, the date a return is received, and
whether a return has been timely filed for purposes of this
subdivision shall not be reviewed in any administrative or judicial
proceeding.
(B) Any disallowance of a credit claimed due to a determination
under this subdivision shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from such
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(c) (1) 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 succeeding five years if
necessary, until the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) (1) The Higher Education Investment Tax Credit Program Special
Fund is hereby created as a special fund in the State Treasury. All
revenue in this special fund, upon appropriation by the
Legislature, shall be allocated to the Student Aid Commission for
purposes of awarding Cal Grants to students pursuant to Section
69432.75 of the Education Code. fund shall be
allocated as follows:
(A) First, to the General Fund in an amount equal to the amount of
certified credits allowed pursuant to this section and Section 23686
for the taxable year.
(B) Second, revenues shall be allocated, upon appropriation by the
Legislature:
(i) To the Franchise Tax Board, the Treasurer, the Controller, and
the Student Aid Commission for reimbursement of all administrative
costs incurred by these agencies in connection with their duties
under this section, Section 23686, and Section 69432.75 of the
Education Code.
(ii) To the Student Aid Commission for purposes of awarding Cal
Grants to students pursuant to Section 69432.75 of the Education
Code.
(2) The tax credit allowed by subdivision (a) of this section and
subdivision (a) of Section 23686 for donations to the Higher
Education Investment Tax Credit Program Special Fund shall be known
as the Higher Education Investment Tax Credit Program.
(e) (1) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes of
this section, including any guidelines regarding the limitation on
total credits allowable under this section and Section 23686.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
(f) This section shall remain in effect only until December 1,
2016, and as of that date is repealed.
SEC. 2. Section 23686 is added to the Revenue and Taxation Code,
to read:
23686. (a) (1) For each taxable year beginning on or after
January 1, 2013, and before January 1, 2016, there shall be allowed a
credit against the "tax," as defined in Section 23036, an amount
equal to the following:
(A) For taxable years on and after January 1, 2013, and before
January 1, 2014, 60 percent of the amount contributed by the taxpayer
during the 2013 taxable year to the Higher Education Investment Tax
Credit Program Special Fund, as allocated and certified by the
Treasurer.
(B) For taxable years on and after January 1, 2014, and before
January 1, 2015, 55 percent of the amount contributed by the taxpayer
during the 2014 taxable year to the Higher Education Investment Tax
Credit Program Special Fund, as allocated and certified by the
Treasurer.
(C) For taxable years on and after January 1, 2015, and before
January 1, 2016, 50 percent of the amount contributed by the taxpayer
during the 2015 taxable year to the Higher Education Investment Tax
Credit Program Special Fund, as allocated and certified by the
Treasurer.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 17053.86 shall not
exceed five one hundred million dollars
($500,000,000) ($100,000,000) for the
2013 calendar year and five one hundred
million dollars ($500,000,000)
($100,000,000) for each calendar year thereafter.
(2) (A) For purposes of this section, the Treasurer shall do all
of the following:
(i) On or after January 1, 2013, and before January 1, 2016,
allocate and certify tax credits to taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
Higher Education Investment Tax Credit Program Special Fund and to
obtain from the Treasurer a certification for the credit allowed by
this section.
(iii) On or after January 1, 2013, and before January 1, 2015,
notify the taxpayer within seven days of receipt of a contribution of
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five one hundred million dollar
($500,000,000) ($100,000,000) cap set
forth in paragraph (1) of subdivision (b) has been reached, the
Treasurer shall offer the taxpayer a choice between either the return
of the contribution or the receipt of the certification for the next
taxable year.
(iv) On or after January 1, 2015, and before January 1, 2016,
notify the taxpayer within seven days of receipt of a contribution,
the contribution amount that is eligible for a credit. If the
allocation and certification would be limited or denied because the
five one hundred million dollar
($500,000,000) ($100,000,000) cap set forth in
paragraph (1) of subdivision (b) has been reached, the Treasurer
shall offer the taxpayer the option of a return of all of the
contribution or the portion of the contribution that would be
limited, as applicable.
(v) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(3) (A) The determinations of the Franchise Tax Board with respect
to the disallowance of a credit, the date a return is received, and
whether a return has been timely filed for purposes of this
subdivision shall not be reviewed in any administrative or judicial
proceeding.
(B) Any disallowance of a credit claimed due to a determination
under this subdivision shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from such
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(c) (1) 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 succeeding five years if necessary, until
the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) (1) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes of
this section, including any guidelines regarding the limitation on
total credits allowable under this section and Section 17053.86.
(2) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
(e) This section shall remain in effect only until December 1,
2016, and as of that date is repealed.
SEC. 3. This act shall become operative only if Senate Bill 1466
of the 2011-12 Regular Session is enacted and takes effect on or
before January 1, 2013.