Bill Text: CA AB831 | 2017-2018 | Regular Session | Amended
Bill Title: Personal income and corporation taxes: credits: compliance.
Sponsorship: Strong Partisan Bill (Republican 10-1)
Status: (Failed) 2018-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB831 Detail]
Download: California-2017-AB831-Amended.html
|
Amended
IN
Assembly
April 25, 2017 |
|
Amended
IN
Assembly
March 20, 2017 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 831 |
| Introduced by Assembly Member Patterson (Coauthors: Assembly Members Acosta, Baker, Chávez, Gallagher, Kiley, Lackey, Mathis, Mayes, Voepel, and Waldron) |
February 16, 2017 |
An act to add Sections 17053.91 and 23686.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 831, as amended, Patterson.
Personal income and corporation taxes: credits: compliance.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2017, for qualified small businesses, microbusinesses, as defined, for costs paid or incurred during the taxable year with regard to compliance with state laws and regulations in an amount equal to $25 for each person-hour spent on compliance with state regulations and laws, or $5,000,
not to exceed $1,200, or $1,200, as provided.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.91 is added to the Revenue and Taxation Code, to read:17053.91.
(a) (1) For each taxable year beginning on or after January 1, 2017, there shall be allowed to a(2) The credit allowed by this section shall either be five thousand dollars ($5,000) one thousand two hundred dollars ($1,200) or an amount equal to twenty-five dollars ($25) per each person-hour spent on compliance with state laws and regulations, as elected by the taxpayer. taxpayer, not to exceed one thousand two hundred dollars ($1,200).
(b) For purposes of this section:
(2)“Qualified small business” means a business that:
(A)Is independently owned and operated.
(B)Is not dominant in its field of operation.
(C)Has fewer than 100 employees.
(D)Averages annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three taxable years.
(c) 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 the six succeeding years if necessary, until the credit is exhausted.
(d) Section 41 does not apply to the credit allowed by this section.
SEC. 2.
Section 23686.1 is added to the Revenue and Taxation Code, to read:23686.1.
(a) (1) For each taxable year beginning on or after January 1, 2017, there shall be allowed to a(2) The credit allowed by this section shall either be five thousand dollars ($5,000) one thousand two hundred dollars ($1,200) or an amount equal to twenty-five dollars ($25) per each person-hour spent on compliance with state laws and regulations, as elected by the taxpayer. taxpayer, not to exceed one thousand two hundred dollars ($1,200).
(b) For purposes of this section:
(2)“Qualified small business” means a business that:
(A)Is independently owned and operated.
(B)Is not dominant in its field of operation.
(C)Has fewer than 100 employees.
(D)Averages annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three taxable years.
(c) 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 the six succeeding years if necessary, until the credit is exhausted.
(d) Section 41 does not apply to the credit allowed by this section.
