Bill Text: CA SB140 | 2021-2022 | Regular Session | Amended
Bill Title: Personal Income Tax Law: Corporation Tax Law: exclusions from income: Paycheck Protection Program.
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2022-08-31 - Ordered to inactive file on request of Assembly Member Reyes. [SB140 Detail]
Download: California-2021-SB140-Amended.html
Amended
IN
Assembly
August 26, 2022 |
Amended
IN
Assembly
February 15, 2022 |
Amended
IN
Assembly
July 11, 2021 |
Amended
IN
Assembly
June 28, 2021 |
Introduced by Committee on Budget and Fiscal Review |
January 08, 2021 |
LEGISLATIVE COUNSEL'S DIGEST
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2022.
Digest Key
Vote: MAJORITY Appropriation:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.71 of the Revenue and Taxation Code is amended to read:17053.71.
(a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2022, there shall be allowed a small business hiring credit against the “net tax,” as defined in Section 17039, to a qualified small business employer that receives a tentative credit reservation under Section 6902.10, in an amount calculated pursuant to paragraph (2).SEC. 2.
Section 17053.75 is added to the Revenue and Taxation Code, to read:17053.75.
(a) For taxable years beginning on or after January 1, 2024, and except as provided in subdivision (b), there shall be allowed to a qualified taxpayer a credit against the “net tax,” as defined in Section 17039, in an amount equal to the greater of the following:SEC. 3.
Section 17131.8 of the Revenue and Taxation Code is amended to read:17131.8.
(a) For taxable years beginning on or after January 1, 2019, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142), pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260), or pursuant to the PPP Extension Act of 2021 (Public Law 117-6).SEC. 4.
Section 19551.3 of the Revenue and Taxation Code is repealed.Notwithstanding any other law, the State Department of Health Care Services shall exchange data with the Franchise Tax Board upon request, including, but not limited to, sufficient identifying information to allow the State Department of Health Care Services and the Franchise Tax Board to assess the extent to which the State Department of Health Care Services and the Franchise Tax Board can identify individuals enrolled in Medi-Cal who may be eligible for the California Earned Income Tax Credit and the federal Earned Income Tax Credit. The data provided pursuant to this section shall remain confidential and shall be used only for the following purposes:
(a)To analyze and develop a plan to increase the number of eligible claims of the California Earned Income
Tax Credit and the federal Earned Income Tax Credit.
(b)To reduce any barriers to tax filing for nonfilers of tax returns who may be eligible for the California Earned Income Tax Credit and the federal Earned Income Tax Credit.
(c)To develop an outline of the changes needed to increase collaboration and coordination among state agencies to inform the greatest number of individuals eligible for the California Earned Income Tax Credit or the federal Earned Income Tax Credit of their eligibility.
SEC. 5.
Section 19551.3 is added to the Revenue and Taxation Code, to read:19551.3.
(a) The State Department of Social Services and the State Department of Health Care Services shall exchange data with the Franchise Tax Board, including, but not limited to, the names, addresses, and contact information of individuals that may qualify for the California Earned Income Tax Credit. The data provided shall remain confidential and shall be used only for purposes directly connected with the federal Earned Income Tax Credit, the California Earned Income Tax Credit, and other federal and state antipoverty tax credits.SEC. 6.
Section 23628 of the Revenue and Taxation Code is amended to read:23628.
(a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2022, there shall be allowed a small business hiring credit against the “tax,” as defined in Section 23036, to a qualified small business employer that receives a tentative credit reservation under Section 6902.10, in an amount calculated pursuant to paragraph (2).SEC. 7.
Section 24308.6 of the Revenue and Taxation Code is amended to read:24308.6.
(a) For taxable years beginning on or after January 1, 2019, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142), pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260), or pursuant to the PPP Extension Act of 2021 (Public Law 117-6).SEC. 8.
Section 8161 of the Welfare and Institutions Code is amended to read:8161.
(a) TheSEC. 9.
Section 26 of Chapter 264 of the Statutes of 2020 is repealed.SEC. 10.
The sum of twenty thousand dollars ($20,000) is hereby appropriated from the General Fund to the Franchise Tax Board for the purpose of administering the data sharing provisions of Section 19551.3 of the Revenue and Taxation Code as added by Section 5 of this act.SEC. 11.
The Legislature hereby finds and declares that the application of the exclusion from gross income for loan amounts forgiven pursuant to the federal PPP Extension Act of 2021, as provided by Sections 17131.8 and 24308.6 of the Revenue and Taxation Code, to taxable years beginning on or after January 1, 2019, as provided by this act, serves the public purpose of securing the financial condition of businesses that were harmed by the COVID-19 pandemic, and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 12.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.SEC. 13.
This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2022.