Bill Text: CA AB1974 | 2011-2012 | Regular Session | Amended

California Assembly Bill 1974 (Prior Session Legislation)

CA State Legislature page for AB1974

Bill Title: Income taxes: credit: earned income.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-08-16 - In committee: Set, second hearing. Held under submission. [AB1974 Detail]

Download: California-2011-AB1974-Amended.html

BILL NUMBER: AB 1974	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 16, 2012
	AMENDED IN ASSEMBLY  MARCH 26, 2012

INTRODUCED BY   Assembly Member Dickinson
   (Coauthor: Assembly Member Allen)

                        FEBRUARY 23, 2012

   An act to add Section 17052.1 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1974, as amended, Dickinson. Income taxes: credit: earned
income.
   The Personal Income Tax Law  authorizes  
allows  various credits against the taxes imposed by that law,
including certain credits that are allowed in modified conformity to
credits allowed by federal income tax laws.
   This bill would, for taxable years beginning on or after January
1, 2012, allow a credit computed by multiplying the federal earned
income credit amount, as defined, by 15%. This bill would provide
that, in those years in which an appropriation is made by the
Legislature, the credit would be refundable.
   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 17052.1 is added to the Revenue and Taxation
Code, to read:
   17052.1.  (a) For each taxable year beginning on or after January
1, 2012, there shall be allowed  as   to a
qualified taxpayer  a credit against the "net tax," as defined
by Section 17039,  in  an amount determined under
subdivision (b).
   (b) Except as otherwise provided in this section, the amount of
the credit allowed under subdivision (a) shall be computed by
multiplying the "federal earned income credit amount," as defined in
subdivision (c), by 15 percent. 
   (c) For purposes of this section, "federal earned income credit
amount" means the amount determined under Section 32 of the Internal
Revenue Code as in effect on January 1, 2012.  
   (d) A credit shall not be allowed under this section to any of the
following:  
   (c) For purposes of this section:  
   (1) "Federal earned income credit amount" means the amount
determined under Section 32 of the Internal Revenue Code, as in
effect on January 1, 2012, with respect to the qualified taxpayer for
federal income tax purposes for the taxable year in which the credit
allowed under this section is claimed.  
   (2) (A) "Qualified taxpayer" means an individual who is a resident
of California who is eligible for a credit, for federal income tax
purposes, under Section 32 of the Internal Revenue Code, relating to
earned income, as in effect on January 1, 2012, for the taxable year
in which the credit allowed under this section is claimed.  

   (B) "Qualified taxpayer" shall not include:  
   (1) Any person 
    (i)     An individual  who is a
nonresident for any portion of the taxable year  in which the
credit allowed under this section is claimed  . 
   (2) Any person 
    (ii)     An individual  who is
married, within the meaning of Section 17021.5, and files a separate
return for the taxable year  in which the credit allowed under
this section is claimed  . 
   (e) 
    (d)  (1) Except as provided in paragraph (2), in the
case where the credit allowed under this section exceeds the "net
tax," the excess credit may be carried over to reduce the "net tax"
in the following taxable year, and succeeding taxable years, if
necessary, until the credit is exhausted.
   (2) (A) Notwithstanding paragraph (1), for taxable years beginning
on or after January 1, 2012, if the amount allowable as a credit
under this section exceeds the tax liability computed under this
part, the excess shall be credited against other amounts due, if any,
and the balance, if any, shall, upon appropriation by the
Legislature, be paid from the Tax Relief and Refund Account and
refunded to the taxpayer.
   (B) If the amounts refunded to taxpayers pursuant to this
paragraph exceed the amount available in the Tax Relief and Refund
Account, the Franchise Tax Board shall establish a wait list for
refunds, with an order of priority based on the date the taxpayer's
return was received by the Franchise Tax Board. The Franchise Tax
Board shall notify a taxpayer if he or she has been placed on the
wait list. 
   (3) The determinations of the Franchise Tax Board with respect to
the date a return has been received by the Franchise Tax Board for
purposes of this subdivision, may not be reviewed in any
administrative or judicial proceeding.  
   (f) 
    (e)  Any credit refunded to a taxpayer pursuant to this
section shall not be included in income subject to tax under this
part. 
   (g) 
    (f)  Notwithstanding any other state law, and to the
extent permitted by federal law, amounts refunded pursuant to
subdivision  (e)   (d)  shall be treated
the same as the federal earned income credit defined in subdivision
(c) for the purpose of determining eligibility to receive benefits
under Division 9 (commencing with Section 10000) of the Welfare and
Institutions Code or amounts of those benefits. 
   (g) 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 allocation of the
credit allowed under this section. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section. 
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.