Bill Text: CA SB985 | 2009-2010 | Regular Session | Amended

---

Bill Title: Income tax credits: education and training.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2010-04-20 - Set for hearing May 12. Hearing postponed by committee. [SB985 Detail]

Download: California-2009-SB985-Amended.html

---

BILL NUMBER: SB 985	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator  Hollingsworth   Dutton


                        FEBRUARY 8, 2010

    An act to amend Section 218 of the Public Utilities Code,
relating to public utilities.   An act to add Sections
17053.13 and 23623.2 to the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 985, as amended,  Hollingsworth   Dutton
 .  Electrical corporations.   Income tax
credits: education and training.  
   The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws.  
   This bill would, for each taxable year beginning on or after
January 1, 2010, allow a credit under both laws in an amount equal to
50% of the amount of costs paid or incurred in connection with
additional education and training for purposes of career advancement
or retention, as specified.  
   This bill would take effect immediately as a tax levy. 

   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations,
as defined.  
   This bill would make a technical, nonsubstantive change to the
definition of an electrical corporation. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    This act shall be known and may be
cited as the Back to School Tax Credit. 
   SEC. 2.    Section 17053.13 is added to the 
 Revenue and Taxation Code   , to read:  
   17053.13.  (a) There shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to 50 percent of
the costs paid or incurred by the taxpayer during the taxable year
for education and training.
   (b) For purposes of this section "education and training" means
both of the following:
   (1) Education or training provided to the taxpayer's employees to
maintain or improve a skill required for the taxpayer's trade or
business.
   (2) Education and training provided to the taxpayer in order to
comply with the express requirements imposed by the taxpayer's
employer or by laws or regulations as a condition of the taxpayer's
retention of an established employment relationship, status, or rate
of compensation.
   (c) 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 years if necessary, until the
credit is exhausted.
   (d) No deduction shall be allowed to a taxpayer for the amount of
qualified expenses for which a credit is allowed to that taxpayer
under this section. 
   SEC. 3.    Section 23623.2 is added to the  
Revenue and Taxation Code   , to read:  
   23623.2.  (a) There shall be allowed as a credit against the "tax,"
as defined in Section 23036, an amount equal to 50 percent of the
costs paid or incurred by the taxpayer during the taxable year for
education and training.
   (b) For purposes of this section "education and training" means
both of the following:
   (1) Education or training provided to the taxpayer's employees to
maintain or improve a skill required for the taxpayer's trade or
business.
   (2) Education and training provided to the taxpayer in order to
comply with the express requirements imposed by the taxpayer's
employer or by laws or regulations as a condition of the taxpayer's
retention of an established employment relationship, status, or rate
of compensation.
   (c) 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 years if necessary, until the credit
is exhausted.
   (d) No deduction shall be allowed to a taxpayer for the amount of
qualified expenses for which a credit is allowed to that taxpayer
under this section. 
  SEC. 4.    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 218 of the Public Utilities
Code is amended to read:
   218.  (a) "Electrical corporation" includes every corporation or
person owning, controlling, operating, or managing any electric plant
for compensation within the state, except where electricity is
generated on or distributed by the producer through private property
solely for its own use or the use of its tenants and not for sale or
transmission to others.
   (b) "Electrical corporation" does not include a corporation or
person employing cogeneration technology or producing power from
other than a conventional power source for the generation of
electricity solely for any one or more of the following purposes:
   (1) Its own use or the use of its tenants.
   (2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated or on real property immediately adjacent thereto, unless
there is an intervening public street constituting the boundary
between the real property on which the electricity is generated and
the immediately adjacent property and one or more of the following
applies:
   (A) The real property on which the electricity is generated and
the immediately adjacent real property is not under common ownership
or control, or that common ownership or control was gained solely for
purposes of sale of the electricity so generated and not for other
business purposes.
   (B) The useful thermal output of the facility generating the
electricity is not used on the immediately adjacent property for
petroleum production or refining.
   (C) The electricity furnished to the immediately adjacent property
is not utilized by a subsidiary or affiliate of the corporation or
person generating the electricity.
   (3) Sale or transmission to an electrical corporation or state or
local public agency, but not for sale or transmission to others,
unless the corporation or person is otherwise an electrical
corporation.
   (c) "Electrical corporation" does not include a corporation or
person employing landfill gas technology for the generation of
electricity for any one or more of the following purposes:
   (1) Its own use or the use of not more than two of its tenants
located on the real property on which the electricity is generated.
   (2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated.
   (3) Sale or transmission to an electrical corporation or state or
local public agency.
   (d) "Electrical corporation" does not include a corporation or
person employing digester gas technology for the generation of
electricity for any one or more of the following purposes:
   (1) Its own use or the use of not more than two of its tenants
located on the real property on which the electricity is generated.
   (2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated.
   (3) Sale or transmission to an electrical corporation or state or
local public agency, if the sale or transmission of the electricity
service to a retail customer is provided through the transmission
system of the existing local publicly owned electric utility or
electrical corporation of that retail customer.
   (e) "Electrical corporation" does not include an independent solar
energy producer, as defined in Article 3 (commencing with Section
2868) of Chapter 9 of Part 2.
   (f) The amendments made to this section at the 1987 portion of the
1987-88 Regular Session of the Legislature do not apply to any
corporation or person employing cogeneration technology or producing
power from other than a conventional power source for the generation
of electricity that physically produced electricity prior to January
1, 1989, and furnished that electricity to immediately adjacent real
property for use thereon prior to January 1, 1989.