Bill Text: CA AB1735 | 2009-2010 | Regular Session | Amended
Bill Title: Income tax credits: education and training.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2010-05-10 - In committee: Set, final hearing. Held under submission. [AB1735 Detail]
Download: California-2009-AB1735-Amended.html
BILL NUMBER: AB 1735 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 4, 2010
INTRODUCED BY Assembly Member Harkey
( Coauthors: Assembly Members
Anderson, Jeffries, Miller,
Silva, and Villines )
FEBRUARY 4, 2010
An act to add Sections 17053.13 and 23623.2 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1735, as amended, Harkey. Income tax credits: education and
training.
The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws.
This bill would, for each taxable year beginning on or after
January 1, 2010, allow a credit under both laws in an amount equal to
50% of the amount of costs paid or incurred in connection with
additional education and training for purposes of career advancement
or retention, as specified.
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 1. This act shall be known and may be cited as the Back to
School Tax Credit.
SEC. 2. Section 17053.13 is added to the Revenue and Taxation
Code, to read:
17053.13. (a) There shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to 50 percent of
the costs paid or incurred by the taxpayer during the taxable year
for education and training.
(b) For purposes of this section "education and training" means
both of the following:
(1) Education or training provided to the taxpayer's employees to
maintain or improve a skill required for the taxpayer's trade or
business.
(2) Education and training provided to the taxpayer in order to
comply with the express requirements imposed by the taxpayer's
employer or by laws or regulations as a condition of the taxpayer's
retention of an established employment relationship, status, or rate
of compensation.
(c) In the case where the credit allowed by this section exceeds
the "next "net tax," the excess may be
carried over to reduce the "next "net
tax" in the following year, and succeeding years if necessary, until
the credit is exhausted.
(d) No deduction shall be allowed to a taxpayer for the amount of
qualified expenses for which a credit is allowed to that taxpayer
under this section.
SEC. 3. Section 23623.2 is added to the Revenue and Taxation Code,
to read:
23623.2. (a) There shall be allowed as a credit against the "tax,"
as defined in Section 23036, an amount equal to 50 percent of the
costs paid or incurred by the taxpayer during the taxable year for
the education and training.
(b) For purposes of this section "education and training" means
both of the following:
(1) Education or training provided to the taxpayer's employees to
maintain or improve a skill required for the taxpayer's trade or
business.
(2) Education and training provided to the taxpayer in order to
comply with the express requirements imposed by the taxpayer's
employer or by laws or regulations as a condition of the taxpayer's
retention of an established employment relationship, status, or rate
of compensation.
(c) 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 years if necessary, until the credit
is exhausted.
(d) No deduction shall be allowed to a taxpayer for the amount of
qualified expenses for which a credit is allowed to that taxpayer
under this section.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
