March 25, 2021|
|Introduced by Assembly Members |
(Coauthors: Assembly Members Carrillo, Jones-Sawyer, and Wicks)
February 19, 2021
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. (a)An estate shall be allowed a credit of ten dollars ($10) against the tax imposed by Section 17041, less any amounts imposed 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
by Section 17041, less any amounts imposed 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).