Bill Text: CA AB1196 | 2011-2012 | Regular Session | Amended
Bill Title: Income taxes: rates: credit: earned income.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-02-01 - Died pursuant to Art. IV, Sec. 10(c) of the Constitution. From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1196 Detail]
Download: California-2011-AB1196-Amended.html
BILL NUMBER: AB 1196 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 10, 2011
AMENDED IN ASSEMBLY MARCH 31, 2011
INTRODUCED BY Assembly Member Allen
FEBRUARY 18, 2011
An act to add Section Sections 17044.2 and
17052.1 to the Revenue and Taxation Code, relating to
taxation, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1196, as amended, Allen. Income taxes: rates:
credit: earned income.
(1) The Personal Income Tax Law, which is administered by the
Franchise Tax Board, imposes taxes upon the taxable income of
individual taxpayers, at specified rates, based on the amount of the
taxpayer's taxable income.
This bill, for taxable years beginning on or after January 1,
2012, would impose an additional tax at the rate of 0.7% on the
taxpayer's taxable income that exceeds $1,000,000. This bill would
require all revenues received by the Franchise Tax Board from those
taxes be deposited in the Earned Income Tax Credit Fund, a
continuously appropriated fund established by this bill, for the
purposes of providing taxpayer refunds for the earned income tax
credit, as provided.
The
(2) The Personal Income Tax Law
authorizes various credits against the taxes imposed by that law,
including certain credits that are allowed in modified conformity to
credits allowed by federal income tax laws.
This bill would, for taxable years beginning on or after January
1, 2012, allow a credit computed by multiplying the federal credit
amount, as defined, by 15% and subtracting therefrom the alternative
minimum tax, as specified. This bill would provide that the credit
would be refundable and would make an appropriation therefor.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17044.2 is added to the
Revenue and Taxation Code , to read:
17044.2. (a) For each taxable year beginning on or after January
1, 2012, in addition to any other taxes imposed by this part, an
additional tax at the rate of 0.7 percent shall be imposed on the
portion of a taxpayer's taxable income that exceeds one million
dollars ($1,000,000).
(b) For purposes of applying Part 10.2 (commencing with Section
18401) of Division 2, the tax imposed under this section shall be
treated as if imposed under Section 17041.
(c) The following shall not apply to the tax imposed by this
section:
(1) The provisions of Section 17039, relating to the allowance of
credits.
(2) The provisions of Section 17041, relating to filing status and
recomputation of the income tax brackets.
(3) The provisions of Section 17045, relating to joint returns.
(d) Notwithstanding any other provision of this part, all
revenues, less refunds, derived from the tax imposed pursuant to this
section shall be deposited in the Earned Income Tax Credit Fund,
hereby established in the State Treasury. Notwithstanding Section
13340 of the Government Code, all moneys in the fund are hereby
continuously appropriated, without regard to fiscal year, to the
Franchise Tax Board for making refunds pursuant to subdivision (e) of
Section 17052.1.
SECTION 1. SEC. 2. Section 17052.1
is added to the Revenue and Taxation Code, to read:
17052.1. (a) For each taxable year beginning on or after January
1, 2012, there shall be allowed as a credit against the "net tax," as
defined by Section 17039, an amount determined under subdivision
(b).
(b) Except as otherwise provided in this section, the amount of
the credit allowed under subdivision (a) shall be computed by
multiplying the "federal credit amount," as defined in subdivision
(c), by 15 percent and subtracting therefrom the amount of tax
imposed by Section 17062, relating to the alternative minimum tax, if
any, for the same taxable year.
(c) For purposes of this section, "federal credit amount" means
the amount determined under Section 32 of the Internal Revenue Code
as in effect on January 1, 2011.
(d) A credit shall not be allowed under this section to any of the
following:
(1) Any person who is treated as a nonresident
for any portion of the taxable year.
(2) Any person who is married, within the meaning of Section
17021.5, and files a separate return for the taxable year.
(e) (1) If the amount allowable as a credit
under this section exceeds the tax liability computed under this
part, the excess shall be credited against other amounts due, if any,
and the balance, if any, shall be refunded to the taxpayer.
Notwithstanding Section 13340 of the Government Code, and without
regard to fiscal year, there is hereby continuously appropriated from
the General Fund those amounts necessary to make the refunds
pursuant to this subdivisions.
(2) If the amounts refunded to taxpayers pursuant to this section
exceed the amount available in the Earned Income Tax Credit Fund, the
Franchise Tax Board shall establish a wait list for refunds, with an
order of priority based on the date the taxpayer's return was
received by the Franchise Tax Board. The Franchise Tax Board shall
notify a taxpayer if he or she has been placed on the wait list.
(f) Notwithstanding any other state law, and to the extent
permitted by federal law, amounts refunded pursuant to subdivision
(e) shall be treated the same as the federal credit defined in
subdivision (c) for the purpose of determining eligibility to receive
benefits under Division 9 (commencing with Section 10000) of the
Welfare and Institutions Code or amounts of those benefits.
