Bill Text: CA AB1990 | 2009-2010 | Regular Session | Amended

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Bill Title: Income taxes: credit: unemployed workers: child care

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-05-10 - In committee: Set, second hearing. Held under submission. [AB1990 Detail]

Download: California-2009-AB1990-Amended.html

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BILL NUMBER: AB 1990	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly Member Anderson

                        FEBRUARY 17, 2010

    An act relating to taxation.   An act to add
Section 17052.19 to the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1990, as amended, Anderson. Income taxes:  reduction.
  credit: unemployed workers: child care costs. 
   The Personal Income Tax Law  imposes taxes upon taxable
income   and Corporation Tax Law provide tax credits for
startup expenses for child care programs or for constructing a child
care facility, costs for child care information and referral
services, and costs paid or incurred for contributions to a qualified
child care plan. Under existing law, these credits are available for
certain taxable years beginning before January 1, 2012  .
   This bill would  declare the Legislature's intent to enact
legislation that wouldreduce personal income taxes   ,
for each taxable year   beginning on or after January 1,
2011, provide a tax credit for 100% of the costs paid or incurred by
the taxpayer, as defined, for contributions, as defined, for child
care, as specified  . 
   This bill would take effect immediately as a tax levy. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION. 1.    Section 17052.19 is added to the 
 Revenue and Taxation Code   , to read:  
   17052.19.  (a) For each taxable year beginning on or after January
1, 2011, there shall be allowed as a credit against the "net tax"
(as defined by Section 17039) an amount equal to the amount
determined in subdivision (b).
   (b) (1) The amount of the credit allowed by the section shall be
100 percent of the cost paid or incurred by the taxpayer for
contributions for child care costs made on behalf of any qualified
dependent of the taxpayer.
   (2) The amount of the credit allowed by this section in any
taxable year shall not exceed five hundred dollars ($500) for each
qualified dependent.
   (c) For purposes of this section:
   (1) "Contributions" include direct payments to child care programs
or providers.
   (2) "Qualified child care" includes, but is not limited to,
center-based service, in-home care, or home-provider care.
   (3) "Qualified dependent" means any dependent of a taxpayer who is
under 12 years of age.
   (4) "Taxpayer" means an individual who is unemployed and who
received unemployment insurance compensation benefits awarded
pursuant to Chapter 5 (commencing with Section 1251) of Part 1 of
Division 1 of the Unemployment Insurance Code.
   (d) If 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 years if necessary until the credit
has been exhausted.
   (e) No deduction shall be allowed as otherwise provided in this
part for that portion of expenses paid or incurred for the taxable
year that is equal to the amount of the credit allowed under 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.  
  SECTION 1.    The Legislature declares its intent
to enact legislation that would reduce personal income taxes.