Bill Text: CA AB1745 | 2013-2014 | Regular Session | Introduced

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Bill Title: Personal income tax: credits: charitable contributions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-04-07 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1745 Detail]

Download: California-2013-AB1745-Introduced.html

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BILL NUMBER: AB 1745	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Morrell

                        FEBRUARY 14, 2014

   An act to add Section 17052.7 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   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 1.  Section 17052.7 is added to the Revenue and Taxation
Code, to read:
   17052.7.  (a) (1) For taxable years beginning on or after January
1, 2014, there shall be allowed as a credit against the "net tax," as
defined by Section 17039, an amount equal to the amount donated by
the taxpayer during the taxable year to a qualified charitable
organization, subject to paragraph (2).
   (2) In the case of a single individual, a head of household, or a
married individual making a separate return, a credit allowed under
this section shall not exceed two hundred fifty dollars ($250). In
the case of a surviving spouse, as defined in Section 17046, or a
married couple making a joint return, a credit allowed under this
section shall not exceed five hundred dollars ($500).
   (b) For purposes of this section, a "qualified charitable
organization" means an organization that meets all of the following
requirements:
   (1) Is an organization that is exempt from federal income taxes as
an organization described in Section 501(c)(3) of the Internal
Revenue Code or is a designated community action agency that receives
community services block grant moneys pursuant to Section 9901 of
Title 42 of the United States Code.
   (2) Spends at least 50 percent of its budget on services to
individuals in California who either receive CalWORKS benefits, are
low- income individuals whose household income is less than 150
percent of the poverty guidelines updated periodically in the Federal
Register by the U.S. Department of Health and Human Services under
the authority of 42 U.S.C. 9902(2), or are chronically ill or
physically disabled children.
   (3) Demonstrates that the organization plans to continue to spend
at least 50 percent of its budget on services to those persons
described in paragraph (2).
   (4) Applies to, and receives from, the Franchise Tax Board
certification that the organization meets all of the requirements of
paragraphs (1) to (3), inclusive.
   (c) The Franchise Tax Board shall post on its Internet Web site
the names of the qualified charitable organizations.
   (d) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines regarding the certification of
qualified charitable organizations pursuant to this section.
   (e) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding four years if necessary, until
the credit is exhausted.
   (f) A credit allowed by this section shall be in lieu of any
charitable deduction otherwise allowed by this part.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.