Bill Text: CA AB1864 | 2017-2018 | Regular Session | Introduced


Bill Title: Personal income taxes: deductions: federal income tax paid.

Spectrum: Partisan Bill (Republican 8-0)

Status: (Introduced) 2018-01-13 - From printer. May be heard in committee February 12. [AB1864 Detail]

Download: California-2017-AB1864-Introduced.html


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1864


Introduced by Assembly Member Kiley
(Coauthors: Assembly Members Chen, Fong, Gallagher, Mayes, Obernolte, Steinorth, and Voepel)

January 12, 2018


An act to add Section 17210 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1864, as introduced, Kiley. Personal income taxes: deductions: federal income tax paid.
The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions in computing the income that is subject to the taxes imposed by that law, including miscellaneous itemized deductions that are allowed only to the extent that the aggregate amount of those deductions exceeds 2% of adjusted gross income.
This bill, on or after January 1, 2019, would allow as a deduction under that law in an amount equal to the amount of federal income tax paid, as defined, by a taxpayer on income that is attributable to a taxable year beginning on or after January 1, 2018, as specified.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17210 is added to the Revenue and Taxation Code, to read:

17210.
 (a) On or after January 1, 2019, there shall be allowed as a deduction in an amount equal to the amount of federal income tax paid by a taxpayer on income that is attributable to a taxable year beginning on or after January 1, 2018.
(b) For purposes of this section, “federal income tax paid” means the amount paid to the Internal Revenue Service for the taxpayer’s federal tax liability under Chapter 1 of the Internal Revenue Code after reduction for all credits allowed under Chapter 1 of the Internal Revenue Code, except for the credit for the payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credit allowed by Section 31 of the Internal Revenue Code, relating to taxes withheld on wages.
(c) Any additional federal income tax paid by a taxpayer on income that is attributable to a taxable year beginning on or after January 1, 2018, that may be assessed for federal income tax under Chapter 1 of the Internal Revenue Code after the filing of the original return by a taxpayer shall be allowed as a deduction in the year in which that amount is paid.
(d) Any refund of federal income tax paid by a taxpayer on income that is attributable to a taxable year beginning on or after January 1, 2018, that may be received after the filing of the original return by the taxpayer for which the taxpayer was allowed as a deduction pursuant to subdivision (a) shall be included as income in the taxable year in which the refund is received.
(e) This section shall be known, and may be cited to as, the Prosperous Economy and Payer Protection through Equitable Rates Act.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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