Bill Text: CA SB1356 | 2011-2012 | Regular Session | Introduced

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

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Bill Title: Income taxes: credits: contributions to education funds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-08-16 - Set, second hearing. Held in committee and under submission. [SB1356 Detail]

Download: California-2011-SB1356-Introduced.html

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BILL NUMBER: SB 1356	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator De León

                        FEBRUARY 24, 2012

   An act to add and repeal Sections 17053.86 and 23686 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1356, as introduced, De León. Income taxes: credits:
contributions to education funds.
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
   This bill, under both laws, for taxable years beginning on or
after January 1, 2013, and before January 1, 2018, would allow a
credit equal to 65% of a contribution to the Higher Education
Investment Tax Credit Program Special Fund, established by this bill,
for specified education purposes, as provided. This bill would
specify that the aggregate amount of credit that may be allocated
under both laws shall not exceed $500,000,000 for each calendar year.

   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 17053.86 is added to the Revenue and Taxation
Code, to read:
   17053.86.  (a) (1) For each taxable year beginning on or after
January 1, 2013, and before January 1, 2018, there shall be allowed a
credit against the "net tax," as defined in Section 17039, an amount
equal to 65 percent of the amount contributed during the taxable
year to the Higher Education Investment Tax Credit Program Special
Fund.
   (2) Contributions shall be made only in cash.
   (b) (1) The aggregate amount of credit that may be allocated
pursuant to this section and Section 23686 shall not exceed five
hundred million dollars ($500,000,000) for the 2013 calendar year and
five hundred million dollars ($500,000,000) for each calendar year
thereafter.
   (2) (A) Credit under this section and Section 23686 shall be
allowed only for credits claimed on timely filed original returns
received by the Franchise Tax Board on or before the cut-off date
established by the Franchise Tax Board and shall be allocated on a
first-come-first-served basis. The date a return is received shall be
determined by the Franchise Tax Board.
   (B) For purposes of this subdivision, the cut-off date shall be
the last day of the calendar quarter within which the Franchise Tax
Board estimates it will have received timely filed original returns
claiming credits under this section and Section 23686 totaling five
hundred million dollars ($500,000,000) for the calendar year.
   (3) (A) The determinations of the Franchise Tax Board with respect
to the cut-off date, the date a return is received, and whether a
return has been timely filed for purposes of this subdivision shall
not be reviewed in any administrative or judicial proceeding.
   (B) Any disallowance of a credit claimed due to a determination
under this subdivision, including the application of the limitation
specified in paragraph (1), shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from such
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
   (4) The Franchise Tax Board shall periodically provide notice on
its Internet Web site with respect to the amount of credit under this
section and Section 23686 claimed on timely filed original returns
received by the Franchise Tax Board.
   (c) (1) 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 succeeding five years if
necessary, until the credit is exhausted.
   (2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
   (d) (1) The Higher Education Investment Tax Credit Program Special
Fund is hereby created as a special fund in the State Treasury. All
revenue in this special fund, upon appropriation by the Legislature,
shall be allocated to the Student Aid Commission for the
administration of the Cal Grant Program.
   (2) The tax credit allowed by subdivision (a) of this section and
subdivision (a) of Section 23686 for donations to the Higher
Education Investment Tax Credit Program Special Fund shall be known
as the Higher Education Investment Tax Credit Program.
   (e) (1) 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 limitation on
total credits allowable under this section and Section 23686.
   (2) 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
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (f) This section shall remain in effect only until December 1,
2018, and as of that date is repealed.
  SEC. 2.  Section 23686 is added to the Revenue and Taxation Code,
to read:
   23686.  (a) (1) For each taxable year beginning on or after
January 1, 2013, and before January 1, 2018, there shall be allowed a
credit against the "tax," as defined in Section 23036, an amount
equal to 65 percent of the amount contributed during the taxable year
to the Higher Education Investment Tax Credit Program Special Fund,
created by subdivision (d) of Section 17053.86.
   (2) Contributions shall be made only in cash.
   (b) (1) The aggregate amount of credit that may be allocated
pursuant to this section and Section 17053.86 shall not exceed five
hundred million dollars ($500,000,000) for the 2013 calendar year and
five hundred million dollars ($500,000,000) for each calendar year
thereafter.
   (2) (A) Credit under this section and Section 17053.86 shall be
allowed only for credits claimed on timely filed original returns
received by the Franchise Tax Board on or before the cut-off date
established by the Franchise Tax Board and shall be allocated on a
first-come-first-served basis. The date a return is received shall be
determined by the Franchise Tax Board.
   (B) For purposes of this subdivision, the cut-off date shall be
the last day of the calendar quarter within which the Franchise Tax
Board estimates it will have received timely filed original returns
claiming credits under this section and Section 17053.86 totaling
five hundred million dollars ($500,000,000) for the calendar year.
   (3) (A) The determinations of the Franchise Tax Board with respect
to the cut-off date, the date a return is received, and whether a
return has been timely filed for purposes of this subdivision shall
not be reviewed in any administrative or judicial proceeding.
   (B) Any disallowance of a credit claimed due to a determination
under this subdivision, including the application of the limitation
specified in paragraph (1), shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from such
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
   (4) The Franchise Tax Board shall periodically provide notice on
its Internet Web site with respect to the amount of credit under this
section and Section 17053.86 claimed on timely filed original
returns received by the Franchise Tax Board.
   (c) (1) 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 year, and succeeding five years if necessary, until
the credit is exhausted.
   (2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
   (d) (1) 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 limitation on
total credits allowable under this section and Section 17053.86.
   (2) 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
standard, criterion, procedure, determination, rule, notice, or
guideline established or issued by the Franchise Tax Board pursuant
to this section.
   (e) This section shall remain in effect only until December 1,
2018, and as of that date is repealed.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.