Bill Text: CA SB425 | 2009-2010 | Regular Session | Amended

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

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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

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BILL NUMBER: SB 425	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 13, 2009

INTRODUCED BY   Senator Simitian

                        FEBRUARY 26, 2009

    An act to add Section 39611 to the Health and Safety
Code, relating to air resources.   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.  Vehicle trip reduction.
  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 $1,500 for qualified commute reduction expenditures, as
defined, for specified small-business taxpayers.  
   This bill would take effect immediately as a tax levy. 

   Existing law creates the State Air Resources Board, with various
powers and duties relative to reduction of air pollution. Existing
law creates the Department of Transportation, with various powers and
duties relative to transportation planning.  
   This bill would require the State Air Resources Board, in
coordination with the Department of Transportation, to develop a
program for employers employing more than 100 individuals to reduce
the number of single-occupant vehicle trips, as specified. 

   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
one thousand five hundred dollars ($1,500).
   (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 less than seven adults, including the driver.
   (3) "Employee" means a person employed by the taxpayer on a
full-time basis, who performs, at a minimum, 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 paragraph 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 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 elementary and
secondary school students.
   (D) Subsidizing employees commuting in subscription taxipools.
   (E) Subsidizing employees commuting in a carpool.
   (F) Subsidizing employees commuting in 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, for the
purpose of commuting from their homes, to use bicycles.
   (I) Making facility improvements to encourage employees to, or
subsidizing employees who already use, an alternative transportation
method, other than a 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.
   (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.
"Taxpayer" shall not include the state, a county, a city, a city and
county, a special district as defined in Section 12712 of the
Government Code, a school district, a community college district, the
California State University system, or the University of California.

   (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) "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 aggregate amount of credit that may be allowed in any
fiscal year pursuant to this section and Section 23658 shall be an
amount equal to the aggregate revenue increase attributable in that
same fiscal year to Sections 17284 and 24343.1.
   (e) (1) The Franchise Tax Board shall allocate the credit to the
taxpayer on a first-come, first-served basis.
   (2) The taxpayer shall claim the credit on a timely filed original
return.
   (3) The date a return is received shall be determined by the
Franchise Tax Board.
   (4) The determinations of the Franchise Tax Board with respect to
the date a return is received for purposes of this subdivision may
not be reviewed in any administrative or judicial proceeding.
   (f) 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 allocation of the
credit allowed under this section. 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 rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
   (g) 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 meaning 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 one
thousand five hundred dollars ($1,500).
   (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 less than seven adults, including the driver.
   (3) "Employee" means a person employed by the taxpayer on a
full-time basis, who performs, at a minimum, 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 paragraph 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 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 elementary and
secondary school students.
   (D) Subsidizing employees commuting in subscription taxipools.
   (E) Subsidizing employees commuting in a carpool.
   (F) Subsidizing employees commuting in 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, for the
purpose of commuting from their homes, to use bicycles.
   (I) Making facility improvements to encourage employees to, or
subsidizing employees who already use, an alternative transportation
method, other than a 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.
   (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.
"Taxpayer" shall not include the state, a county, a city, a city and
county, a special district as defined in Section 12712 of the
Government Code, a school district, a community college district, the
California State University system, or the University of California.

   (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) "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 aggregate amount of credit that may be allowed in any
fiscal year pursuant to this section and Section 17053.58 shall be an
amount equal to the aggregate revenue increase attributable in that
same fiscal year to Sections 17284 and 24343.1.
   (e) (1) The Franchise Tax Board shall allocate the credit to the
taxpayer on a first-come, first-served basis.
   (2) The taxpayer shall claim the credit on a timely filed original
return.
   (3) The date a return is received shall be determined by the
Franchise Tax Board.
   (4) The determinations of the Franchise Tax Board with respect to
the date a return is received for purposes of this subdivision may
not be reviewed in any administrative or judicial proceeding.
   (f) 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 allocation of the
credit allowed under this section. 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 rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
   (g) 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 meaning 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.  
  SECTION 1.    Section 39611 is added to the Health
and Safety Code, to read:
   39611.  The state board shall, in coordination with the Department
of Transportation, develop a program for employers employing more
than 100 individuals to do all of the following:
   (a) Collect information from employers and regional transportation
agencies on existing programs designed to reduce the number of
single-occupant vehicle trips.
   (b) Evaluate the effectiveness of the programs described in
subdivision (a).
   (c) Make information about the programs in subdivision (a) that
are effective available to employers and the general public on an
Internet Web site.
   (d) Develop additional incentives for employers to adopt programs
and practices that will help achieve a goal of reduction from current
levels of single-occupant vehicle trips by 25 percent in 2015 and 33
percent in 2020.