Bill Text: CA AB1634 | 2023-2024 | Regular Session | Amended

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

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Bill Title: Income taxes: deduction: childcare.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2024-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1634 Detail]

Download: California-2023-AB1634-Amended.html

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Amended  IN  Assembly  March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1634

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Introduced by Assembly Member Bauer-Kahan

February 17, 2023

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An act to amend Section 5846 of the Welfare and Institutions Code, relating to mental health. An act to add and repeal Sections 17215.2 and 24343.6 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

AB 1634, as amended, Bauer-Kahan. Mental Health Services Oversight and Accountability Commission. Income taxes: deduction: childcare.

The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to tax imposed under those laws.

This bill, for taxable years beginning on or after January 1, 2023, and before January 1, 2030, would allow a deduction in computing income for any cost paid or incurred by a taxpayer for qualified childcare provided by the taxpayer to a dependent, under 6 years of age, of the taxpayer’s employee, not to exceed $5,000 per taxable year per qualified dependent. The bill would define qualified childcare for these purposes as a licensed childcare facility or program that is owned or operated by the taxpayer and is intended to be used primarily by dependents of employees of the taxpayer.

This bill would take effect immediately as a tax levy.

Existing law, the Mental Health Services Act, an initiative statute enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the Mental Health Services Oversight and Accountability Commission, and requires the commission to adopt regulations for programs and expenditures for innovative programs and prevention and early intervention programs established by the act. Existing law requires regulations adopted by the State Department of Health Care Services to be consistent with the commission’s regulations. Existing law authorizes the commission to provide technical assistance to a county mental health plan, as specified.

This bill would make technical, nonsubstantive changes to these provisions.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 17215.2 is added to the Revenue and Taxation Code, to read:

17215.2.

 (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2030, a deduction shall be allowed for any cost paid or incurred by a taxpayer for qualified childcare provided by the taxpayer to a qualified dependent of the taxpayer’s employee, not to exceed five thousand dollars ($5,000) per taxable year per qualified dependent.

(b) For purposes of this section, the following shall apply:

(1) “Qualified childcare” means a licensed childcare facility or program that is owned or operated by the taxpayer and is intended to be used primarily by dependents of employees of the taxpayer.

(2) “Qualified dependent” means an individual who meets both of the following:

(A) Is a dependent of an employee of the taxpayer.

(B) Is under six years of age at the start of the taxable year.

(c) A deduction shall only be allowed under this section if qualified childcare is made equally available by the taxpayer to each of the taxpayer’s employees.

(d) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).

(e) It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.

(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.

SEC. 2.

 Section 24343.6 is added to the Revenue and Taxation Code, to read:

24343.6.

 (a) For taxable years beginning on or after January 1, 2023, a deduction shall be allowed for any cost paid or incurred by a taxpayer for qualified childcare provided by the taxpayer to a qualified dependent of the taxpayer’s employee, not to exceed five thousand dollars ($5,000) per taxable year per qualified dependent.

(b) For purposes of this section, the following shall apply:

(1) “Qualified childcare” means a licensed childcare facility or program that is owned or operated by the taxpayer and is intended to be used primarily by dependents of employees of the taxpayer.

(2) “Qualified dependent” means an individual who meets both of the following:

(A) Is a dependent of an employee of the taxpayer.

(B) Is under six years of age at the start of the taxable year.

(c) A deduction shall only be allowed under this section if qualified childcare is made equally available by the taxpayer to each of the taxpayer’s employees.

(d) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).

(e) It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.

(f) This section shall remain in effect only until December 1, 2030, and as of that date is repealed.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

SECTION 1.Section 5846 of the Welfare and Institutions Code is amended to read:

5846.

(a)The commission shall adopt regulations for programs and expenditures pursuant to Part 3.2 (commencing with Section 5830) for innovative programs and Part 3.6 (commencing with Section 5840) for prevention and early intervention programs.

(b)Regulations adopted by the department pursuant to Section 5898 shall be consistent with the commission’s regulations.

(c)The commission may provide technical assistance to a county mental health plan, as needed, to address concerns or recommendations of the commission or if local programs could benefit from technical assistance for improvement of their plans.

(d)The commission shall ensure that the perspective and participation of diverse community members reflective of California populations and others suffering from severe mental illness and their family members is a significant factor in all of its decisions and recommendations.