Bill Text: CA AB2656 | 2011-2012 | Regular Session | Amended

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

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Bill Title: California Transportation Financing Authority: tax

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-08-16 - In committee: Set, second hearing. Held under submission. [AB2656 Detail]

Download: California-2011-AB2656-Amended.html

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BILL NUMBER: AB 2656	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 11, 2012

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 24, 2012

   An act to  amend Section 17085   add and
repeal Division 4 (commencing with Section 64140) of Title 6.7 of the
Government Code, and to add and repeal Sections 17053.60 and 23660
 of the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2656, as amended, Charles Calderon.  Personal income
taxes: retirement plans: early distributions.  
California Transportation Financing Authority: tax credit
certificates for exporters and importers: income tax credit. 

   Existing law creates the California Transportation Financing
Authority, with various powers and duties relative to the financing
of transportation projects.  
   This bill would authorize the authority to award tax credit
certificates to exporters and importers, as defined, that demonstrate
to the satisfaction of the authority that they have increased their
cargo tonnage or value through California ports and airports by
specified amounts or have created and filled new cargo-moving jobs
for California residents or have invested capital into a cargo
facility. The bill would authorize $500 million in tax credit
certificates to be awarded by the authority for taxable years
beginning on or after January 1, 2013, and before January 1, 2018.
The bill would authorize the authority to impose fees to cover its
costs in that regard, with fees to be deposited in the Job and Trade
Competitiveness Fee Account, which the bill would create in the State
Treasury. The bill would authorize the authority to borrow money
until the time that sufficient fee revenue is available, with loans
made to the authority to be repayable solely from revenues in the
account.  
   The bill would make legislative findings and declarations. 

   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.  
   This bill would, for taxable years beginning on or after January
1, 2013, and before January 1, 2018, allow a credit in an amount not
to exceed $250,000 against the taxes imposed by those laws if a
taxpayer receives a tax credit certificate and increases its exports
or imports through California ports or airports, creates and fills a
new cargo-moving job in California, or makes a capital expenditure
for a cargo facility in California, as specified.  
   This bill would take effect immediately as a tax levy. 

   The Personal Income Tax Law, in modified conformity to federal
income tax laws, imposes an additional tax upon early distributions
from specified retirement plans, as provided.  
   This bill would, for taxable years beginning on or after January
1, 2013, not impose that additional tax on the first $50,000, or 50%
of value of the retirement account, whichever is less, distributed to
an individual for the purpose of paying qualified mortgage costs, as
defined.  
   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.    Division 4 (commencing with Section
64140) is added to Title 6.7 of the   Government Code 
 , to read:  

      DIVISION 4.  JOB AND TRADE COMPETITIVENESS ACT


   64140.  (a) The Legislature finds and declares all of the
following:
   (1) California is the international trade leader of the United
States as the gateway to the dynamic economies of the Pacific Rim.
International trade is one of the most important economic and job
creation drivers of the state and a key to the state's economic
recovery. Together, the three California customs districts of Los
Angeles, San Diego, and San Francisco led the nation by processing
approximately $500 billion in two-way trade value in 2010. The
combined California ports of Los Angeles, Long Beach, and Oakland are
the busiest seaports in the nation, handling approximately 45
percent of all the waterborne containerized cargo coming into the
United States.
   (2) California, however, must do more to ensure that California
ports remain competitive, as the Gulf, East Coast, and Mexican ports
work to attract business away from California seaports and
competition intensifies after the expansion of the Panama Canal in
2014. California ports are taking action to retain market share by
expanding terminal capacity and investing in other trade-related
infrastructure projects, but more needs to be done to protect
California's vitally important international trade sector, including
creating incentives to maintain and grow new business-,
manufacturing-, and trade-related jobs in the years ahead.
   (b) It is the intent of the Legislature to boost exports and
imports through California ports and airports by providing tax
incentives for California exporters and importers and by providing
tax incentives for increasing cargo-moving capacity.
   (c) Providing California tax credits to exporters and importers
through California ports and airports and increasing cargo-moving
capacity at California's ports and airports will support President
Obama's national export initiative.
   64141.  For the purposes of this division, the following terms
have the following meanings:
   (a) "Authority" means the California Transportation Financing
Authority established in Section 64101.
   (b) "Export cargo tonnage" means the weight of cargo exported
through California ports and airports by an exporter to destinations
outside the United States.
   (c) "Export cargo value" means the value of exported cargo as
certified by the applicant for a tax credit certificate.
   (d) "Exporter" means a California taxpayer that is the shipper of
record of agricultural products or manufactured  goods on an ocean
bill of lading or on an air waybill.
   (e) "Import cargo tonnage" means the weight of cargo imported by
an importer through California ports and airports by that importer
from outside the United States.
   (f) "Import cargo value" means the value of imported cargo as
certified by the applicant for a tax credit certificate.
   (g) "Importer" means a California taxpayer that is the consignee
of record of agricultural products or manufactured goods on an ocean
bill of lading or on an air waybill.
   (h) "New cargo-moving job" means a 40 hour or more per week
position, for one employee or a combination of employees, in
California, related to an increase in export or import cargo volume
through a port or airport in California, created and filled during a
taxable year beginning on or after January 1, 2013, and before
January 1, 2018, by an importer or exporter.
   (i) "Tax credit certificate" means a certificate awarded by the
authority to an exporter or importer evidencing the right of the
exporter or importer to claim the tax credits provided for in this
division in the amount specified in the certificate.
   64142.  (a) The authority may award a tax credit certificate to a
person that is an exporter or importer pursuant to subdivisions (b)
and (c) in an amount that is not greater than two hundred fifty
thousand dollars ($250,000) for a taxable year. The total amount of
tax credit certificates authorized to be awarded pursuant to
subdivision (b) is two hundred fifty million dollars ($250,000,000)
and pursuant to subdivision (c) is two hundred fifty million dollars
($250,000,000) for a total of five hundred million dollars
($500,000,000) to be awarded pro rata over the taxable years
beginning on or after January 1, 2013, and before January 1, 2018.
   (b) Subject to the limitations in subdivision (e), tax credit
certificates may be awarded by the authority to any of the following:

   (1) Exporters that demonstrate to the satisfaction of the
authority that they have increased their export cargo tonnage through
California ports in a taxable year beginning on or after January 1,
2013, and before January 1, 2018, by at least 5 percent over their
export cargo tonnage through California ports for the preceding
taxable year.
   (2) Importers that demonstrate to the satisfaction of the
authority that they have increased their import cargo tonnage through
California ports in a taxable year beginning on or after January 1,
2013, and before January 1, 2018, by at least 5 percent over their
import cargo tonnage through California ports for the preceding
taxable year.
   (3) Exporters that demonstrate to the satisfaction of the
authority that they have increased their export cargo value through
California airports in a taxable year beginning on or after January
1, 2013, and before January 1, 2018, by at least 5 percent over their
export cargo tonnage through California airports for the preceding
taxable year.
   (4) Importers that demonstrate to the satisfaction of the
authority that they have increased their import cargo value through
California airports in taxable year beginning on or after January 1,
2013, and before January 1, 2018, by at least 5 percent over their
import cargo tonnage through California airports for the preceding
taxable year.
   (5) Exporters or importers that demonstrate to the satisfaction of
the authority that they have exported or imported export or import
cargo tonnage through California ports in excess of 400,000 tons in a
taxable year beginning on or after January 1, 2013, and before
January 1, 2018, and that they did not export or import cargo through
California ports in the preceding taxable year.
   (6) Exporters and importers that demonstrate to the satisfaction
of the authority that they have exported or imported cargo through
California airports with export or import cargo value in excess of
two hundred fifty thousand dollars ($250,000) in a taxable year
beginning on or after January 1, 2013, and before January 1, 2018,
and that they did not export or import cargo through California
airports in the preceding taxable year.
   (c) (1) Subject to the limitations in subdivision (e), tax credit
certificates may be awarded by the authority to exporters and
importers that demonstrate to the satisfaction of the authority that
they have created and filled all new cargo-moving jobs in California
on account of an increase in the cargo volume of the exporter or
importer. The number of new cargo-moving jobs created and filled in a
taxable year shall be determined by subtracting the total number of
full-time cargo-moving jobs, defined as 2,000 paid hours per employee
per year, filled by the taxpayer in the preceding taxable year from
the total number of full-time cargo-moving jobs filled by the
taxpayer in the taxable year.
   (2) Subject to the limitations in subdivision (e), tax credit
certificates may be awarded by the authority to exporters and
importers that demonstrate to the satisfaction of the authority that
they have made capital expenditures on a cargo facility in
California.
   (d) The authority shall develop and provide application forms for
use by applicants for tax credit certificates. The application form
shall provide for inclusion of the applicant's taxpayer
identification number.
   (e) If the authority projects that requests for tax credit
certificates are likely to exceed the amount permitted by this
division to be awarded by the authority during any calendar year, the
authority shall defer its awards for that calendar year until the
end of the calendar year and allocate awards for that calendar year
pro rata, on the basis of total tax credits certificates that would
be awarded in the absence of a limitation on awards, among all
applicants approved pursuant to subdivisions (b) and (c).
   (f) (1) The authority shall establish and charge applicants fees
that it determines are reasonably sufficient to cover all of its
costs in carrying out its responsibilities under this division. The
fees shall be deposited in the Job and Trade Competitiveness Fee
Account, which is hereby established in the State Treasury. Moneys in
the account shall be available, upon appropriation by the
Legislature, to the authority for the purpose of implementing this
division.
   (2) Until the time that sufficient revenue is received by the
authority, the authority may borrow any money as may be required for
the purpose of meeting necessary expenses under this division, not to
exceed the amount appropriated. A loan made to the authority shall
be repayable solely from moneys appropriated to the authority from
the Job and Trade Competitiveness Fee Account and shall not
constitute a general obligation of the state for which the full faith
and credit of the state are pledged.
   (g) The authority shall determine the amount of each tax credit
pursuant to this division and Sections 17053.60 and 23660 of the
Revenue and Taxation Code, and the Franchise Tax Board shall not be
responsible for determining the amount of that tax credit. The
authority shall provide the Franchise Tax Board with an electronic
copy of each tax credit certification awarded by it. The tax credit
certificate shall include the amount of the tax credit, the name and
taxpayer identification number of the exporter or importer to which
the certificate was awarded.
   (h) A tax credit certificate awarded pursuant to this section
shall not be transferable.
   (i) This section shall remain in effect only until December 1,
2018, and as of that date is repealed. 
   SEC. 2.    Section 17053.60 is added to the 
 Revenue and Taxation Code   , to read:  
   17053.60.  (a) (1) For each taxable year beginning on or after
January 1, 2013, and before January 1, 2018, and subject to
subdivision (c), there shall be allowed as a credit against the "net
tax," as defined in Section 17039, the amount specified in paragraph
(2).
   (2) (A) (i) If an exporter or importer imported or exported during
the preceding taxable year, the credit amount will be determined as
follows:
   (I) The amount of credit allowed for an exporter or importer that
increases exports or imports through ports in California shall be
three dollars and twelve and one-half cents ($3.125) per ton of
increased exports and imports through ports in California in a
taxable year attributable to the exporter or importer.
   (II) The amount of credit allowed for an exporter or importer that
increases exports or imports through airports in California shall be
one thousand dollars ($1,000) for each ten thousand dollars
($10,000) of increased exports and imports through airports in
California in a taxable year attributable to the exporter or
importer.
   (ii) If an exporter or importer did not import or export during
the preceding taxable year, the credit amount shall be determined as
follows:
   (I) The amount of credit allowed for an exporter or importer that
exports or imports 400,000 or more tons through ports in California
in a taxable year shall be three dollars and twelve and one-half
cents ($3.125) per ton of exports and imports through ports in
California in a taxable year attributable to the exporter or
importer.
   (II) The amount of credit allowed for an exporter or importer that
exports or imports two hundred fifty thousand dollars ($250,000) or
more through airports in California shall be one thousand dollars
($1,000) for each ten thousand dollars ($10,000) of exports and
imports through airports in California in a taxable year attributable
to the exporter or importer.
   (B) The amount of the credit shall be three thousand dollars
($3,000) for each new cargo-moving job created and filled by an
exporter or importer in a taxable year or 2 percent of the amount of
capital expenditures for a cargo facility made by an exporter or
importer during a taxable year, whichever is greater.
   (b) For purposes of this section:
   (1) "Cargo facility" means a capital project at a port or airport
in California designed to increase cargo-moving capacity at that port
or airport and that is expended in a taxable year and has a useful
life of five years or more.
   (2) "Exporter" has the same meaning as provided in subdivision (d)
of Section 64141 of the Government Code.
   (3) "Importer" has the same meaning as provided in subdivision (g)
of Section 64141 of the Government Code.
   (4) "Increased exports or imports" means the difference between
the amount of exports and imports, whether measured by tons or
dollars, in a current taxable year and the preceding taxable year.
   (5) "New cargo-moving job" has the same meaning as provided in
subdivision (h) of Section 64141 of the Government Code.
   (c) The amount of the credit allowed to a taxpayer under this
section shall be no more than two hundred fifty thousand dollars
($250,000) for a taxable year and shall be limited to the amount
specified in the tax credit certificate issued to the taxpayer
pursuant to Section 64140 of the Government Code.
   (d) 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 nine years, if necessary,
until the credit is exhausted.
   (e) This section shall remain in effect only until December 1,
2018, and as of that date is repealed. 
   SEC. 3.    Section 23660 is added to the  
Revenue and Taxation Code   , to read:  
   23660.  (a) (1) For each taxable year beginning on or after
January 1, 2013, and before January 1, 2018, and subject to
subdivision (c), there shall be allowed as a credit against the "tax,"
as defined in Section 23036, an amount specified in paragraph (2).
   (2) (A) (i) If an exporter or importer imported or exported during
the preceding taxable year, the credit amount will be determined as
follows:
   (I) The amount of credit allowed for an exporter or importer that
increases exports or imports through ports in California shall be
three dollars and twelve and one-half cents ($3.125) per ton of
increased exports and imports through ports in California in a
taxable year attributable to the exporter or importer.
   (II) The amount of credit allowed for an exporter or importer that
increases exports or imports through airports in California shall be
one thousand dollars ($1,000) for each ten thousand dollars
($10,000) of increased exports and imports through airports in
California in a taxable year attributable to the exporter or
importer.
   (ii) If an exporter or importer did not import or export during
the preceding taxable year, the credit amount shall be determined as
follows:
   (I) The amount of credit allowed for an exporter or importer that
exports or imports 400,000 or more tons through ports in California
in a taxable year shall be three dollars and twelve and one-half
cents ($3.125) per ton of exports and imports through ports in
California in a taxable year attributable to the exporter or
importer.
   (II) The amount of credit allowed for an exporter or importer that
exports or imports two hundred fifty thousand dollars ($250,000) or
more through airports in California shall be one thousand dollars
($1,000) for each ten thousand dollars ($10,000) of exports and
imports through airports in California in a taxable year attributable
to the exporter or importer.
   (B) The amount of the credit shall be three thousand dollars
($3,000) for each new cargo-moving job created and filled by an
exporter or importer in a taxable year pursuant to Section 64142 of
the Government Code or 2 percent of the amount of capital
expenditures for a cargo facility made by an exporter or importer
during a taxable year, whichever is greater.
   (b) For purposes of this section:
   (1) "Cargo facility" means a capital project at a port or airport
in California designed to increase cargo-moving capacity at that port
or airport and that is expended in a taxable year and has a useful
life of five years or more.
   (2) "Exporter" has the same meaning as provided in subdivision (d)
of Section 64141 of the Government Code.
   (3) "Importer" has the same meaning as provided in subdivision (g)
of Section 64141 of the Government Code.
   (4) "Increased exports or imports" means the difference between
the amount of exports and imports, whether measured by tons or
dollars, in a current taxable year and the preceding taxable year.
   (5) "New cargo-moving job" has the same meaning as provided in
subdivision (h) of Section 64141 of the Government Code.
   (c) The amount of credit allowed to a taxpayer under this section
shall be no more than two hundred fifty thousand dollars ($250,000)
for a taxable year and shall be limited to the amount specified in
the credit certificate issued to the taxpayer pursuant to Section
64140 of the Government Code.
   (d) 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 nine years, if necessary, until the
credit is exhausted.
   (e) This section shall remain in effect only until December 1,
2018, and as of that date is repealed. 
   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 17085 of the Revenue and
Taxation Code is amended to read:
   17085.  Section 72 of the Internal Revenue Code, relating to
annuities; certain proceeds of endowment and life insurance
contracts, is modified as follows:
   (a) The amendments and transitional rules made by Public Law
99-514 shall be applicable to this part for the same transactions and
the same years as they are applicable for federal purposes, except
that the repeal of Section 72(d) of the Internal Revenue Code,
relating to repeal of special rule for employees' annuities, shall
apply only to the following:
   (1) Any individual whose annuity starting date is after December
31, 1986.
   (2) At the election of the taxpayer, any individual whose annuity
starting date is after July 1, 1986, and before January 1, 1987.
   (b) The amount of a distribution from an individual retirement
account or annuity or employee trust or employee annuity that is
includable in gross income for federal purposes shall be reduced for
purposes of this part by the lesser of either of the following:
   (1) An amount equal to the amount includable in federal gross
income for the taxable year.
   (2) An amount equal to the basis in the account or annuity allowed
by Section 17507 (relating to individual retirement accounts and
simplified employee pensions), the increased basis allowed by
Sections 17504 and 17506 (relating to plans of self-employed
individuals), the increased basis allowed by Section 17501, or the
increased basis allowed by Section 17551 that is remaining after
adjustment for reductions in gross income under this provision in
prior taxable years.
   (c) (1) Except as provided in paragraph (2), the amount of the
additional tax imposed under this part shall be computed in
accordance with Sections 72(m), (q), (t), and (v) of the Internal
Revenue Code, as applicable for federal income tax purposes for the
same taxable year, using a rate of 21/2 percent, in lieu of the rate
provided in those sections.
   (2) In the case where Section 72(t)(6) of the Internal Revenue
Code, relating to special rules for simple retirement accounts, as
applicable for federal income tax purposes for the same taxable year,
applies, the rate in paragraph (1) shall be 6 percent in lieu of the
21/2 percent rate specified therein.
   (3) (A) Notwithstanding paragraphs (1) and (2), for taxable years
beginning on or after January 1, 2013, an individual shall not pay
the additional tax described in paragraph (1) for early withdrawal of
a qualified principal residence mortgage payment distribution from
his or her retirement account when the moneys are used to reduce
qualified mortgage costs.
   (B) For the purposes of this paragraph:
   (i) "Qualified mortgage costs" means amounts paid as principal or
interest on acquisition indebtedness, as defined in Section 163(h)(3)
(B) of the Internal Revenue Code, except that the dollar limitation
in Section 163(h)(3)(B)(ii) of the Internal Revenue Code shall not
apply.
   (ii) "Qualified principal residence mortgage payment distribution"
means a payment or distribution received by an individual to the
extent that the payment or distribution is used by the individual
before the close of the 120th day after the day on which that payment
or distribution is received to pay qualified mortgage costs with
respect to a principal residence of the individual or spouse of the
individual.
   (C) The aggregate amount of qualified principal residence mortgage
payment distributions received by an individual for all taxable
years shall not exceed fifty thousand dollars ($50,000) or 50 percent
of the value of his or her retirement account on the day of the
withdrawal.
   (D) The Franchise Tax Board may promulgate regulations as
necessary or appropriate to carry out the purposes of this paragraph.

   (d) Section 72(f)(2) of the Internal Revenue Code shall be
applicable without applying the exceptions which immediately follow
that paragraph.
   (e) The amendments made by Section 844 of the Pension Protection
Act of 2006 (Public Law 109-280) to Section 72(e) of the Internal
Revenue Code, shall not apply.  
  SEC. 2.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.