Bill Text: CA AB1634 | 2023-2024 | Regular Session | Amended
Bill Title: Income taxes: deduction: childcare.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1634 Detail]
Download: California-2023-AB1634-Amended.html
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Amended
IN
Assembly
March 30, 2023 |
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Amended
IN
Assembly
March 23, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1634
| Introduced by Assembly Member Bauer-Kahan |
February 17, 2023 |
An act to add and repeal Sections 17215.2 and 24343.6 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1634, as amended, Bauer-Kahan.
Income taxes: deduction: childcare.
The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to tax imposed under those laws.
This bill, for taxable years beginning on or after January 1, 2023, 2024, and before January 1, 2030, 2029, would allow a deduction in computing income for any cost paid or incurred by a taxpayer for qualified childcare provided by the taxpayer to a
dependent, under 6 years of age, of the taxpayer’s employee, not to exceed $5,000 per taxable year per qualified dependent. The bill would define qualified childcare for these purposes as a licensed childcare facility or program that is owned or operated by the taxpayer and is intended to be used primarily by dependents of employees of the taxpayer.
Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17215.2 is added to the Revenue and Taxation Code, to read:17215.2.
(a) For taxable years beginning on or after January 1,(b) For purposes of this section, the following shall apply:
(1) “Qualified childcare” means a licensed childcare facility or program that is owned or operated by the taxpayer and is intended to be used primarily by dependents of employees of the taxpayer.
(2) “Qualified dependent” means an individual who meets both of the following:
(A) Is a dependent of an employee of the taxpayer.
(B) Is under six years of age at the start on the first day of the taxable year.
(c) A deduction shall only be allowed under this section if qualified childcare
is made equally available by the taxpayer to each of the taxpayer’s employees.
(d) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).
(e)It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
(e) (1) For purposes of complying with Section 41, as it applies to the deduction allowed by
this section or Section 24343.6, the Legislature finds and declares as follows:
(A) The specific goal, purpose, and objective of the deduction is to incentivize businesses to offer childcare to their employees.
(B) The performance indicator for the Legislature to use in determining if the deduction achieves its stated purpose is the number of taxpayers allowed a deduction pursuant to this section or Section 24343.6.
(2) (A) By May 1, 2026, and annually thereafter, the Franchise Tax Board shall submit a report to the Legislature, in accordance with Section 9795 of the Government Code, detailing the number of taxpayers allowed a deduction pursuant to this section and Section 24343.6.
(B) The disclosure provisions of this paragraph
shall be treated as an exception to Section 19542.
(f) This section shall remain in effect only until December 1, 2030, 2029, and as of that date is repealed.
SEC. 2.
Section 24343.6 is added to the Revenue and Taxation Code, to read:24343.6.
(a) For taxable years beginning on or after January 1,(b) For purposes of this section, the following shall apply:
(1) “Qualified childcare”
means a licensed childcare facility or program that is owned or operated by the taxpayer and is intended to be used primarily by dependents of employees of the taxpayer.
(2) “Qualified dependent” means an individual who meets both of the following:
(A) Is a dependent of an employee of the taxpayer.
(B) Is under six years of age at the start of the taxable year.
(c) A deduction shall only be allowed under this section if qualified childcare is made equally available by the taxpayer to each of the taxpayer’s employees.
(d) Any deduction otherwise allowed under this part for any amount paid or
incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).
(e)It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
(e) For purposes of complying with Section 41, the goal, purpose, objective, performance indicators, and data collection requirements for the deduction allowed by this section shall be as specified in subdivision (e) of Section 17215.2.
(f) This
section shall remain in effect only until December 1, 2030,
2029, and as of that date is repealed.
