Bill Text: CA SB268 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Income taxes: credit: dependent care.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Failed) 2016-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB268 Detail]

Download: California-2015-SB268-Amended.html

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BILL NUMBER: SB 268	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 23, 2015

INTRODUCED BY   Senator Nguyen

                        FEBRUARY 19, 2015

   An act to amend Section 17052.6 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 268, as amended, Nguyen. Income taxes: credit: dependent care.
   The Personal Income Tax Law, in modified conformity to federal
income tax law, authorizes a credit for household and dependent care
expenses necessary for gainful employment, as provided.
   This bill, for taxable years beginning on or after January 1,
2015, would increase the amount of employment-related expenses
incurred during a taxable year which may be taken into account in
determining the amount of the credit from $3,000 to $4,000 if there
is one qualifying dependent and from $6,000 to $12,000 if there are 2
or more qualifying dependents.
   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.  Section 17052.6 of the Revenue and Taxation Code is
amended to read:
   17052.6.  (a) For each taxable year beginning on or after January
1, 2000, there shall be allowed as a credit against the "net tax", as
defined in Section 17039, an amount determined in accordance with
Section 21 of the Internal Revenue Code, relating to expenses for
household and dependent care services necessary for gainful
employment, except that the amount of the credit shall be a
percentage, as provided in subdivision (b) of the allowable federal
credit without taking into account whether there is a federal tax
liability.
   (b) For the purposes of subdivision (a), the percentage of the
allowable federal credit shall be determined as follows:
   (1) For taxable years beginning before January 1, 2003:
                                  The percentage
  If the adjusted gross income          of
              is:                   credit is:
$40,000 or less..............         63%
Over $40,000 but not over             53%
$70,000......................
Over $70,000 but not over             42%
$100,000.....................
Over $100,000................          0%


   (2) For taxable years beginning on or after January 1, 2003:
                                  The percentage
  If the adjusted gross income          of
              is:                   credit is:
$40,000 or less..............         50%
Over $40,000 but not over             43%
$70,000......................
Over $70,000 but not over             34%
$100,000.....................
Over $100,000................          0%


   (c) For purposes of this section, "adjusted gross income" means
adjusted gross income as computed for purposes of paragraph (2) of
subdivision (h) of Section 17024.5.
   (d) The credit authorized by this section shall be limited, as
follows:
   (1) Employment-related expenses, within the meaning of Section 21
of the Internal Revenue Code, relating to expenses for household and
dependent care services necessary for gainful employment, shall be
limited to expenses for household services and care provided in this
state.
   (2) Earned income, within the meaning of Section 21(d) of the
Internal Revenue Code, relating to earned income limitation, shall be
limited to earned income subject to tax under this part. For
purposes of this paragraph, compensation received by a member of the
armed forces for active services as a member of the armed forces,
other than pensions or retired pay, shall be considered earned income
subject to tax under this part, whether or not the member is
domiciled in this state.
   (e) For purposes of this section, Section 21(b)(1) of the Internal
Revenue Code, relating to a qualifying individual, is modified to
additionally provide that a child, as defined in Section  152
(c)(3) of the Internal Revenue Code, relating to age requirements,
  152(f)(1) of the Internal Revenue Code, relating to
child defined,  shall be treated, for purposes of Section 152 of
the Internal Revenue Code, relating to dependent defined, as
applicable for purposes of this section, as receiving over one-half
of his or her support during the calendar year from the parent having
custody for a greater portion of the calendar year, that parent
shall be treated as a "custodial parent," within the meaning of
Section 152(e) of the Internal Revenue Code, relating to special rule
for divorced parents, etc., as applicable for purposes of this
section, and the child shall be treated as a qualifying individual
under Section 21(b)(1) of the Internal Revenue Code, relating to
qualifying individual, as applicable for purposes of this section, if
both of the following apply:
   (1) The child receives over one-half of his or her support during
the calendar year from his or her parents who never married each
other and who lived apart at all times during the last six months of
the calendar year.
   (2) The child is in the custody of one or both of his or her
parents for more than one-half of the calendar year.
   (f) For taxable years beginning on or after January 1, 2015:
   (1) The reference to "$3,000" in Section 21(c)(1) of the Internal
Revenue Code is modified to read "$4,000".
   (2) The reference to "$6,000" in Section 21(c)(2) of the Internal
Revenue Code is modified to read "$12,000".
   (g) The amendments to this section made by Section 1.5 of Chapter
824 of the Statutes of 2002 shall apply only to taxable years
beginning on or after January 1, 2002.
   (h) The amendments made to this section by Chapter 14 of the
Statutes of 2011 shall apply to taxable years beginning on or after
January 1, 2011.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.