Bill Text: CA SB425 | 2009-2010 | Regular Session | Amended
Bill Title: Personal and corporate income taxes: deductions:
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB425 Detail]
Download: California-2009-SB425-Amended.html
BILL NUMBER: SB 425 AMENDED
BILL TEXT
AMENDED IN SENATE JULY 23, 2009
AMENDED IN SENATE JULY 15, 2009
AMENDED IN SENATE JUNE 11, 2009
AMENDED IN SENATE MAY 4, 2009
AMENDED IN SENATE APRIL 16, 2009
AMENDED IN SENATE APRIL 13, 2009
INTRODUCED BY Senator Simitian
FEBRUARY 26, 2009
An act to add Sections 17053.58, 17284, 23658, and 24343.1 to the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 425, as amended, Simitian. Personal and corporate income taxes:
deductions: parking: credits: ridesharing expenses.
The Personal Income Tax Law and the Corporation Tax Law allow
various deductions in computing the income that is subject to the
taxes imposed by those laws. Existing law allows an employer to
deduct its expenses in carrying out a parking subsidy and a parking
cash-out program, as defined, for employees.
This bill would disallow a deduction for expenses of specified
employers for parking subsidies unless all employees provided with a
parking subsidy are offered a parking cash-out program in accordance
with a specified statute.
The Personal Income Tax Law and Corporation Tax Law authorize
various credits against the taxes imposed by those laws.
This bill would authorize a credit under both those laws, for
taxable years beginning on or after January 1, 2009, in an amount not
to exceed specified amounts for qualified commute reduction
expenditures, as defined, for specified small business taxpayers.
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 17053.58 is added to the Revenue and Taxation
Code, to read:
17053.58. (a) For taxable years beginning on or after January 1,
2009, there shall be allowed to a taxpayer as a credit against the
"net tax," as defined in Section 17039, an amount equal to 80 percent
of the costs paid or incurred during the taxable year by the
taxpayer for qualified commute reduction expenditures, not to exceed
the following:
(1) One hundred sixty-three dollars ($163) for taxable years
beginning on or after January 1, 2009, and before January 1, 2010.
(2) One hundred sixty-eight dollars ($168) for taxable years
beginning on or after January 1, 2010, and before January 1, 2011.
(3) One hundred seventy-three dollars ($173) for taxable years
beginning on or after January 1, 2011, and before January 1, 2012.
(4) One hundred eighty-three dollars ($183) for taxable years
beginning on or after January 1, 2012.
(b) For purposes of this section:
(1) "Buspool" means 16 or more persons commuting on a daily basis
to and from work by means of a vehicle with a seating arrangement
designed to carry more than 15 adult passengers.
(2) "Carpool" means two or more persons commuting on a daily basis
to and from work by means of a vehicle with a seating arrangement
designed to carry fewer than seven adults, including the driver.
(3) "Employee" means a person employed by the taxpayer on a
full-time basis who, at a minimum, works 30 hours per week for
compensation.
(4) "Private commuter bus" means a highway vehicle which meets all
of the following criteria:
(A) Has a seating capacity of at least seven adults, including the
driver.
(B) At least 50 percent of the mileage of which can be reasonably
expected to be used for the purpose of transporting employees to and
from work.
(C) Is acquired by the taxpayer on or after the date of enactment
of this section.
(D) With respect to which the taxpayer makes an election under
this section on his or her return for the taxable year in which the
vehicle is placed in service.
(5) "Qualified commute reduction expenditure" means costs paid or
incurred by the taxpayer for any of the following:
(A) Subsidizing employees commuting in vanpools.
(B) Subsidizing employees commuting in private commuter buses or
buspools.
(C) Subsidizing the use of transit by its employees or for use by
the employee's dependents, except that no deduction shall be allowed
to subsidize the cost of transit for elementary and secondary school
students.
(D) Subsidizing employees commuting in subscription taxipools.
(E) Subsidizing employees commuting in a carpool.
(F) Subsidizing employees commuting on a ferry.
(G) Providing free or subsidized parking to carpools, vanpools, or
any other vehicle used in a ridesharing arrangement within
California.
(H) Making facility improvements to encourage employees to use, or
subsidizing employees who already use, an alternative transportation
method other than a transportation method specified in this
paragraph, that reduces the use of a motor vehicle by a single
occupant to travel to or from that employee's place of employment.
(I) Making facility improvements to encourage employees, for the
purpose of commuting to or from that employee's place of employment,
to participate in ridesharing arrangements, to bicycle, or to walk.
These facility improvements may include, but are not limited to, any
of the following:
(i) The construction of bus shelters.
(ii) The installation of bicycle racks and other bicycle-related
facilities, such as showers and locker rooms.
(iii) The modifications of parking lots to provide carpools,
vanpools, or buspools with preferential treatment.
(J) Subsidizing employees who travel to or from a telecommuting
facility.
(6) "Subscription taxipool" means a type of service in which
employers or groups of employees contract with a public or private
taxi operator to provide daily commuter service for a group of
preassembled subscribers on a prepaid or daily fare basis following a
relatively fixed route and schedule tailored to meet the needs of
the subscribers.
(7) "Taxpayer" means a person or entity engaged in a trade or
business within California who employs a maximum of 20 employees as
of June 30 of the taxable year.
(8) "Transit" means transportation service for use by the general
public that utilizes buses, railcars, or ferries with a seating
capacity of 16 or more persons.
(9) "Vanpool" means seven or more persons commuting on a daily
basis to and from work by means of a vehicle with a seating
arrangement designed to carry 7 to 15 adults, including the driver,
that is used to transport those persons who commute to and from work
on a regular basis.
(c) This credit shall be in lieu of any other deduction which the
taxpayer may otherwise claim pursuant to this part with respect to
the costs paid or incurred during the taxable year by the taxpayer
for qualified commute reduction expenditures.
(d) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section.
(e) In the case where a credit allowed under this section exceeds
the "net tax," the excess credit may be carried over to reduce the
"net tax" in the following taxable year, and succeeding taxable
years, if necessary, until the credit has been exhausted.
SEC. 2. Section 17284 is added to the Revenue and Taxation Code,
to read:
17284. (a) For taxable years beginning on or after January 1,
2009, no deduction is allowed under this part for amounts paid or
incurred by an employer subject to Section 43845 of the Health and
Safety Code for parking subsidies unless all employees of the
employer provided with a parking subsidy are offered a parking
cash-out program in accordance with Section 43845 of the Health and
Safety Code.
(b) For purposes of this section, "parking subsidy" and "parking
cash-out program" have the same meanings as defined in Section 43845
of the Health and Safety Code.
SEC. 3. Section 23658 is added to the Revenue and Taxation Code,
to read:
23658. (a) For taxable years beginning on or after January 1,
2009, there shall be allowed to a taxpayer as a credit against the
"tax," as defined in Section 23036, an amount equal to 80 percent of
the costs paid or incurred during the taxable year by the taxpayer
for qualified commute reduction expenditures, not to exceed the
following:
(1) One hundred sixty-three dollars ($163) for taxable years
beginning on or after January 1, 2009, and before January 1, 2010.
(2) One hundred sixty-eight dollars ($168) for taxable years
beginning on or after January 1, 2010, and before January 1, 2011.
(3) One hundred seventy-three dollars ($173) for taxable years
beginning on or after January 1, 2011, and before January 1, 2012.
(4) One hundred eighty-three dollars ($183) for taxable years
beginning on or after January 1, 2012.
(b) For purposes of this section:
(1) "Buspool" means 16 or more persons commuting on a daily basis
to and from work by means of a vehicle with a seating arrangement
designed to carry more than 15 adult passengers.
(2) "Carpool" means two or more persons commuting on a daily basis
to and from work by means of a vehicle with a seating arrangement
designed to carry fewer than seven adults, including the driver.
(3) "Employee" means a person employed by the taxpayer on a
full-time basis who, at a minimum, works 30 hours per week for
compensation.
(4) "Private commuter bus" means a highway vehicle which meets all
of the following criteria:
(A) Has a seating capacity of at least seven adults, including the
driver.
(B) At least 50 percent of the mileage of which can be reasonably
expected to be used for the purpose of transporting employees to and
from work.
(C) Is acquired by the taxpayer on or after the date of enactment
of this section.
(D) With respect to which the taxpayer makes an election under
this section on his or her return for the taxable year in which the
vehicle is placed in service.
(5) "Qualified commute reduction expenditure" means costs paid or
incurred by the taxpayer for any of the following:
(A) Subsidizing employees commuting in vanpools.
(B) Subsidizing employees commuting in private commuter buses or
buspools.
(C) Subsidizing monthly transit passes for
the use of transit by its employees or for use by the employee'
s dependents, except that no deduction shall be allowed for
transit passes issued for the use of to subsidize the
cost of transit for elementary and secondary school students.
(D) Subsidizing employees commuting in subscription taxipools.
(E) Subsidizing employees commuting in a carpool.
(F) Subsidizing employees commuting on a ferry.
(G) Providing free or preferential parking to carpools, vanpools,
or any other vehicle used in a ridesharing arrangement within
California.
(H) Making facility improvements to encourage employees to use, or
subsidizing employees who already use, an alternative transportation
method other than a transportation method specified in this
paragraph, that reduces the use of a motor vehicle by a single
occupant to travel to or from that employee's place of employment.
(I) Making facility improvements to encourage employees, for the
purpose of commuting to or from that employee's place of employment,
to participate in ridesharing arrangements, to bicycle, or to walk.
These facility improvements may include, but are not limited to, any
of the following:
(i) The construction of bus shelters.
(ii) The installation of bicycle racks and other bicycle-related
facilities, such as showers and locker rooms.
(iii) The modifications of parking lots to provide carpools,
vanpools, or buspools with preferential treatment.
(J) Subsidizing employees who travel to or from a telecommuting
facility.
(6) "Subscription taxipool" means a type of service in which
employers or groups of employees contract with a public or private
taxi operator to provide daily commuter service for a group of
preassembled subscribers on a prepaid or daily fare basis following a
relatively fixed route and schedule tailored to meet the needs of
the subscribers.
(7) "Taxpayer" means a person or entity engaged in a trade or
business within California who employs a maximum of 20 employees as
of June 30 of the taxable year.
(8) "Transit" means transportation service for use by the general
public that utilizes buses, railcars, or ferries with a seating
capacity of 16 or more persons.
(9) "Transit pass" means any purchase of transit rides that
entitles the holder to any number of transit rides to and from the
workplace, whether at a discount rate or the base fare rate.
(10)
(9) "Vanpool" means seven or more persons commuting on
a daily basis to and from work by means of a vehicle with a seating
arrangement designed to carry 7 to 15 adults, including the driver,
that is used to transport those persons who commute to and from work
on a regular basis.
(c) This credit shall be in lieu of any other deduction which the
taxpayer may otherwise claim pursuant to this part with respect to
the costs paid or incurred during the taxable year by the taxpayer
for qualified commute reduction expenditures.
(d) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section.
(e) In the case where a credit allowed under this section exceeds
the "tax," the excess credit may be carried over to reduce the "tax"
in the following taxable year, and succeeding taxable years, if
necessary, until the credit has been exhausted.
SEC. 4. Section 24343.1 is added to the Revenue and Taxation Code,
to read:
24343.1. (a) For taxable years beginning on or after January 1,
2009, no deduction is allowed under this part for amounts paid or
incurred by an employer subject to Section 43845 of the Health and
Safety Code for parking subsidies unless all employees of the
employer provided with a parking subsidy are offered a parking
cash-out program in accordance with Section 43845 of the Health and
Safety Code.
(b) For purposes of this section, "parking subsidy" and "parking
cash-out program" have the same meanings as defined in Section 43845
of the Health and Safety Code.
SEC. 5. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
