CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1253

Introduced by Assembly Members Santiago and Lee

February 19, 2021

An act to amend Section 17733 of the Revenue and Taxation Code, relating to taxation.


LEGISLATIVE COUNSEL'S DIGEST


AB 1253, as introduced, Santiago. Personal Income Tax: credits: trusts and estates.
The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a credit for estates for $10 and trusts for $1.
This bill would make nonsubstantive changes to those provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17733 of the Revenue and Taxation Code is amended to read:

17733.
 (a) An estate shall be allowed a credit of ten dollars ($10) against the tax imposed under by Section 17041, less any amounts imposed under by paragraph (1) of subdivision (d) or paragraph (1) of subdivision (e), or both, of Section 17560.
(b) (1) Except as provided in paragraph (2), a trust shall be allowed a credit of one dollar ($1) against the tax imposed under by Section 17041, less any amounts imposed under by paragraph (1) of subdivision (d) or paragraph (1) of subdivision (e), or both, of Section 17560.
(2) (A) A disability trust, as defined in Section 642(b)(2)(C) of the Internal Revenue Code, shall be allowed a credit in an amount equal to the personal exemption credit authorized for a single individual pursuant to subdivision (a) of Section 17054.
(B) The credit authorized by subparagraph (A) shall be subject to the credit reduction provisions of Section 17054.1. For purposes of making the adjustments required by Section 17054.1, the adjusted gross income of the disability trust shall be computed in accordance with Section 67(e) of the Internal Revenue Code, relating to determination of adjusted gross income in case of estates and trusts.
(C) This paragraph applies to taxable years beginning on or after January 1, 2004.
(c) The credits allowed by this section shall be in lieu of the credits allowed under Section 17054 (relating to credit for personal exemption).