AB 1745, as introduced, Morrell. Personal income tax: credits: charitable contributions.
The Personal Income Tax Law allows various credits against the tax imposed by that law.
This bill would allow a credit against that tax for each taxable year beginning on or after January 1, 2014, in an amount equal to the amount donated to a qualified charitable organization, as defined, not to exceed a specified amount per taxable year. This bill would require the Franchise Tax Board to certify that the organization is a qualified charitable organization and post a list of the certified qualified charitable organizations on its Internet Web site.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17052.7 is added to the Revenue and
2Taxation Code, to read:
(a) (1) For taxable years beginning on or after
4January 1, 2014, there shall be allowed as a credit against the “net
P2 1tax,” as defined by Section 17039, an amount equal to the amount
2donated by the taxpayer during the taxable year to a qualified
3charitable organization, subject to paragraph (2).
4(2) In the case of a single individual, a head of household, or a
5married individual making a separate return, a credit allowed under
6this section shall not exceed two hundred fifty dollars ($250). In
7the case of a surviving spouse, as defined in Section 17046, or a
8married couple making a joint return, a credit allowed under this
9section shall not exceed five hundred dollars ($500).
10(b) For purposes of this section, a “qualified charitable
11organization” means an organization that meets all of the following
12requirements:
13(1) Is an organization that is exempt from federal income taxes
14as an organization described in Section 501(c)(3) of the Internal
15Revenue Code or is a designated community action agency that
16receives community services block grant moneys pursuant to
17Section 9901 of Title 42 of the United States Code.
18(2) Spends at least 50 percent of its budget on services to
19individuals in California who either receive CalWORKS benefits,
20are low- income individuals whose household income is less than
21150 percent of the poverty guidelines updated periodically in the
22Federal Register by the U.S. Department of Health and Human
23Services under the authority of 42 U.S.C. 9902(2), or are
24chronically ill or
physically disabled children.
25(3) Demonstrates that the organization plans to continue to spend
26at least 50 percent of its budget on services to those persons
27described in paragraph (2).
28(4) Applies to, and receives from, the Franchise Tax Board
29certification that the organization meets all of the requirements of
30paragraphs (1) to (3), inclusive.
31(c) The Franchise Tax Board shall post on its Internet Web site
32the names of the qualified charitable organizations.
33(d) The Franchise Tax Board may prescribe rules, guidelines,
34or procedures necessary or appropriate to carry out the purposes
35of this section, including any guidelines regarding the certification
36of qualified charitable organizations pursuant to this section.
37(e) In the case where the credit allowed by this section exceeds
38the “net tax,” the excess may be carried over to reduce the “net
39tax” in the following year, and succeeding four years if necessary,
40until the credit is exhausted.
P3 1(f) A credit allowed by this section shall be in lieu of any
2charitable deduction otherwise allowed by this part.
This act provides for a tax levy within the meaning of
4Article IV of the Constitution and shall go into immediate effect.
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