Bill Text: CA SB1025 | 2021-2022 | Regular Session | Amended
Bill Title: Income tax: credits: blood donation.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-04-28 - May 4 set for first hearing canceled at the request of author. [SB1025 Detail]
Download: California-2021-SB1025-Amended.html
|
Amended
IN
Senate
April 27, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1025
| Introduced by Senator Bates (Principal coauthor: Assembly Member Cooper) |
February 15, 2022 |
An act to add and repeal Sections 17053.3 and 23673.3 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1025, as amended, Bates.
Income tax: blood donation credit. credits: blood donation.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on or after January 1, 2022, and before January 1, 2027, would allow a credit against those taxes to specified business entities that hold blood drives, in coordination with a nonprofit blood bank organization, on the entity’s business premises, in an amount based on the number of blood drives organized by the taxpayer and the number of verified blood donations, not to exceed $10,000 $10,000, cumulatively,
per taxable year.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
The bill would include additional information required for any bill authorizing a new tax expenditure.
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 17053.3 is added to the Revenue and Taxation Code, to read:17053.3.
(a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, for a qualified taxpayer in(b) The credit allowed to a qualified taxpayer in subdivision (a) shall be equal to the sum of both of the following, not to exceed ten thousand dollars ($10,000), cumulatively:
(1) For every blood drive organized by the qualified taxpayer during the taxable year, five hundred dollars ($500).
(2) The product of twenty-three dollars ($23) by the number of verified blood donations made during blood drives organized by the qualified taxpayer, as verified by a nonprofit blood bank.
(b)
(c) For purposes of this section, the following definitions shall apply:
(1) “Blood donation” means the voluntary and uncompensated donation of whole blood or blood products drawn for use by a nonprofit blood bank organization.
(2) “Blood drive” means a function held at a specific date and time that is organized by a qualified taxpayer, in coordination with a nonprofit blood bank organization, on the qualified taxpayer’s business premises.
(3) “Qualified taxpayer” means a sole proprietor, general partnership, limited partnership, limited liability company, corporation, or other legally recognized business entity.
business entity taxable under this part that organizes a blood drive held on the business entity’s premises.
(4) “Verified blood donation” means a blood donation by a donor made during a blood drive that can be provided for use by a nonprofit blood bank organization. organization, as verified by the nonprofit blood bank organization.
(c)The credit allowed by this section may be claimed for multiple blood drives held by the qualified taxpayer in a taxable year but shall not exceed ten thousand dollars ($10,000), cumulatively, per taxable
year.
(d) (1) The nonprofit blood bank organization shall provide each qualified taxpayer with a verified count of the number of verified blood donations received at every blood drive organized by the qualified taxpayer.
(2) The qualified taxpayer shall retain a record of all information received by the nonprofit blood bank organization and shall provide the information and verified counts of verified blood donations to the Franchise Tax Board upon request.
(d)
(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 taxable year, and succeeding six years if necessary, until the credit is exhausted.
(e)
(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.
(f)
(g) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (d), until the credit is exhausted.
SEC. 2.
Section 23673.3 is added to the Revenue and Taxation Code, to read:23673.3.
(a) For each taxable year beginning on or after January 1, 2022, and before January 1, 2027, there shall be allowed as a credit against the “tax,” as defined in Section 23036, for a qualified taxpayer in(b) The credit allowed to a qualified taxpayer in subdivision (a) shall be equal to the sum of both of the following, not to exceed ten thousand dollars ($10,000), cumulatively:
(1) For every blood drive organized by the qualified taxpayer during the taxable year, five hundred dollars ($500).
(2) The product of twenty-three dollars ($23) by the number of verified blood donations made during blood drives organized by the qualified taxpayer, as verified by a nonprofit blood bank.
(b)
(c) For purposes of this section, the following definitions shall apply:
(1) “Blood donation” means the voluntary and uncompensated donation of whole blood or blood products drawn for use by a nonprofit blood bank organization.
(2) “Blood drive” means a function held at a specific date and time that is organized by a qualified taxpayer, in coordination with a nonprofit blood bank organization, on the qualified taxpayer’s business premises.
(3) “Qualified taxpayer” means a sole proprietor, general partnership, limited partnership, limited liability company, corporation, or other legally recognized business entity.
business entity taxable under this part that organizes a blood drive held on the business entity’s premises.
(4) “Verified blood donation” means a blood donation by a donor made during a blood drive that can be provided for use by a nonprofit blood bank organization. organization, as verified by the nonprofit blood bank organization.
(c)The credit allowed by this section may be claimed for multiple blood drives held by
the qualified taxpayer in a taxable year but shall not exceed ten thousand dollars ($10,000), cumulatively, per taxable year.
(d) (1) The nonprofit blood bank organization shall provide each qualified taxpayer with a verified count of the number of verified blood donations received at every blood drive organized by the qualified taxpayer.
(2) The qualified taxpayer shall retain a record of all information received by the nonprofit blood bank organization and shall provide the information and verified counts of verified blood donations to the Franchise Tax Board upon request.
(d)
(e) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding six years if necessary, until the credit is exhausted.
(e)
(f) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.
(f)
(g) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (d), until the credit is
exhausted.
SEC. 3.
For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares as follows:(a) The specific goals, purposes, and objectives of this bill are as follows:
(1) To incentivize organizations that partner with community-based nonprofit blood bank organizations.
(2) To increase the availability of blood and blood components available to help patients survive surgeries, cancer treatment, chronic illnesses, and traumatic injuries.
(3) To amplify the importance of organizations assisting in addressing their community blood shortages.
(4) To assure a continuing partnership with community nonprofit blood bank organizations.
(5) To provide financial relief for costs associated with the sponsorship of the blood drives.
(b) To measure whether the deduction achieves its intended purpose, the following detailed performance indicators shall be used:
(1) The number of qualified taxpayers that claim the credit.
(2)The increased number of sponsored blood drives over the five-year period.
(3)
(2) The average credit amount claimed by qualified taxpayers.
(4)
(3) Whether the number of qualified taxpayers claiming the credit increased each taxable year.
(c) (1) On or before January 1, 2028, 2029,
the Franchise Tax Board shall submit a report, in compliance with Section 9795 of the Government Code, to the Legislature using the performance indicators described in subdivision (b) to analyze whether the credit met the specific goals, purposes, and objectives described in subdivision (a).
(2) Any disclosures necessary for purposes of subparagraph (A) shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
