Bill Text: CA SB1272 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income taxes: credit: small business employee savings plan.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2016-11-30 - From committee without further action. [SB1272 Detail]

Download: California-2015-SB1272-Introduced.html

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BILL NUMBER: SB 1272	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Runner

                        FEBRUARY 18, 2016

   An act to add and repeal Sections 17053.50 and 23650 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1272, as introduced, Runner. Income taxes: credit: small
business employee savings plan.
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
   This bill would allow, for taxable years beginning on or after
January 1, 2016, and before January 1, 2021, a tax credit under both
laws in an amount equal to 50% of the qualified taxpayer's
contributions to a qualified employee savings plan, as provided.
   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 17053.50 is added to the Revenue and Taxation
Code, to read:
   17053.50.  (a) For taxable years beginning on or after January 1,
2016, and before January 1, 2021, there shall be allowed to a
qualified taxpayer a credit against the "net tax," as defined in
Section 17039, in an amount equal to 50 percent of the qualified
taxpayer's contributions to a qualified employee savings plan, not to
exceed two thousand dollars ($2,000) per employee per taxable year.
   (b) For purposes of this section:
   (1) "Qualified employee savings plan" means an employee savings
plan where at least half of the recipient employees earn less than
forty thousand dollars ($40,000) in wages received from the qualified
taxpayer per taxable year.
   (2) "Qualified taxpayer" means a taxpayer that is a small business
as defined in Section 14837 of the Government Code.
   (c) This section shall remain in effect only until December 1,
2021, and as of that date is repealed.
  SEC. 2.  Section 23650 is added to the Revenue and Taxation Code,
to read:
   23650.  (a) For taxable years beginning on or after January 1,
2016, and before January 1, 2021, there shall be allowed to a
qualified taxpayer a credit against the "net tax," as defined in
Section 17039, in an amount equal to 50 percent of the qualified
taxpayer's contributions to a qualified employee savings plan, not to
exceed two thousand dollars ($2,000) per employee per taxable year.
   (b) For purposes of this section:
   (1) "Qualified employee savings plan" means an employee savings
plan where at least half of the recipient employees earn less than
forty thousand dollars ($40,000) in wages received from the qualified
taxpayer per taxable year.
   (2) "Qualified taxpayer" means a taxpayer that is a small business
as defined in Section 14837 of the Government Code.
   (c) This section shall remain in effect only until December 1,
2021, and as of that date is repealed.
  SEC. 3.  (a) In accordance with Section 41 of the Revenue and
Taxation Code, the purpose of the credit allowed by Sections 17053.50
and 23650 of the Revenue and Taxation Code, as added by Sections 1
and 2 of this act is to promote savings for employees, especially
young and low-income workers who have no savings and no retirement
options other than Social Security. To measure whether the credit
achieves its intended purpose, on or before January 1, 2018, and each
January 1 thereafter, the Franchise Tax Board shall annually prepare
a written report to the Legislature of the following:
   (1) The percentage of employees under 30 years of age who are
receiving matching funds.
   (2) The percentage of employees earning less than forty thousand
dollars ($40,000) per annum who are receiving matching funds.
   (b) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.