BILL NUMBER: SB 295 INTRODUCED
BILL TEXT
INTRODUCED BY Senator De León
FEBRUARY 23, 2015
An act to amend Sections 17053.86 and 23686 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 295, as introduced, De León. College Access Tax Credit Fund.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws, including,
for taxable years beginning on or after January 1, 2014, and before
January 1, 2017, a credit equal to a certain percentage of a
contribution to the College Access Tax Credit Fund for specified
education purposes, as provided.
This bill would extend the allowance of these credits to taxable
years beginning before January 1, 2018.
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 17053.86 of the Revenue and Taxation Code is
amended to read:
17053.86. (a) (1) For each taxable years
year beginning on or after January 1, 2014, and
before January 1, 2017, 2018, there
shall be allowed as a credit against the "net tax," as defined in
Section 17039, an amount equal to the following:
(A) For each taxable year beginning on and after January 1, 2014,
and before January 1, 2015, 2016, 60
percent of the amount contributed by the taxpayer for the 2014
or 2015 taxable year to the College Access Tax Credit Fund, as
allocated and certified by the California Educational Facilities
Authority.
(B) For each taxable year beginning on and after January 1,
2015, 2016, and before January 1,
2016, 2017, 55 percent of the amount
contributed by the taxpayer for the 2015 2016
taxable year to the College Access Tax Credit Fund, as
allocated and certified by the California Educational Facilities
Authority.
(C) For each taxable year beginning on and after January 1,
2016, 2017, and before January 1,
2017, 2018, 50 percent of the amount
contributed by the taxpayer for the 2016 2017
taxable year to the College Access Tax Credit Fund, as
allocated and certified by the California Educational Facilities
Authority.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 23686 shall be an
amount equal to the sum of all of the following:
(A) Five hundred million dollars ($500,000,000) in credits for the
2014 calendar year and each calendar year thereafter.
(B) The amount of previously unallocated and uncertified credits.
(2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
(i) On or after January 1, 2014, and before January 1,
2017, 2018, allocate and certify tax credits to
taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
(iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
(c) (1) 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 five years if
necessary, until the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) (1) The College Access Tax Credit Fund is hereby created as a
special fund in the State Treasury. All revenue in this special fund
shall be allocated as follows:
(A) First to the General Fund in an amount equal to the aggregate
amount of certified credits allowed pursuant to this section and
Section 23686 for the taxable year. Funds allocated to the General
Fund shall be considered General Fund revenues for purposes of
Sections 8 and 8.5 of Article XVI of the California Constitution.
(B) Second, upon appropriation, as follows:
(i) To the Franchise Tax Board, the California Educational
Facilities Authority, the Controller, and the Student Aid Commission
for reimbursement of all administrative costs incurred by those
agencies in connection with their duties under this section, Section
23686, and Section 69432.7 of the Education Code.
(ii) To the Student Aid Commission for purposes of awarding Cal
Grants to students pursuant to Section 69431.7 of the Education Code.
(2) The tax credit allowed by subdivision (a) of this section and
subdivision (a) of Section 23686 for donations to the College Access
Tax Credit Fund shall be known as the College Access Tax Credit.
(e) This section shall remain in effect only until December 1,
2017, 2018, and as of that date is
repealed.
SEC. 2. Section 23686 of the Revenue and Taxation Code is amended
to read:
23686. (a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2017,
2018, there shall be allowed as a credit against the "tax," as
defined in Section 23036, an amount equal to the following:
(A) For taxable years each taxable year
beginning on and after January 1, 2014, and before January 1,
2015, 2016, 60 percent of the amount
contributed by the taxpayer for the 2014 or 2015 taxable
year to the College Access Tax Credit Fund, as allocated and
certified by the California Educational Facilities Authority.
(B) For taxable years each taxable year
beginning on and after January 1, 2015,
2016, and before January 1, 2016,
2017, 55 percent of the amount contributed by the taxpayer for
the 2015 2016 taxable year to the
College Access Tax Credit Fund, as allocated and certified by the
California Educational Facilities Authority.
(C) For taxable years each taxable year
beginning on and after January 1, 2016,
2017, and before January 1, 2017,
2018, 50 percent of the amount contributed by the taxpayer for
the 2016 2017 taxable year to the
College Access Tax Credit Fund, as allocated and certified by the
California Educational Facilities Authority.
(2) Contributions shall be made only in cash.
(b) (1) The aggregate amount of credit that may be allocated and
certified pursuant to this section and Section 17053.86 shall be an
amount equal to the sum of all of the following:
(A) Five hundred million dollars ($500,000,000) in credits
for the 2014 calendar year and each calendar year thereafter.
(B) The amount of previously unallocated and uncertified credits.
(2) (A) For purposes of this section, the California Educational
Facilities Authority shall do all of the following:
(i) On or after January 1, 2014, and before January 1,
2017, 2018, allocate and certify tax credits to
taxpayers under this section.
(ii) Establish a procedure for taxpayers to contribute to the
College Access Tax Credit Fund and to obtain from the California
Educational Facilities Authority a certification for the credit
allowed by this section. The procedure shall require the California
Educational Facilities Authority to certify the contribution amount
eligible for credit within 45 days following receipt of the
contribution.
(iii) Provide to the Franchise Tax Board a copy of each credit
certificate issued for the calendar year by March 1 of the calendar
year immediately following the year in which those certificates are
issued.
(B) (i) The California Educational Facilities Authority shall
adopt any regulations necessary to implement this paragraph.
(ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
regulation adopted by the California Educational Facilities Authority
pursuant to clause (i).
(c) (1) 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 five years if necessary, until
the credit is exhausted.
(2) A deduction shall not be allowed under this part for amounts
taken into account under this section in calculating the credit
allowed by this section.
(d) This section shall remain in effect only until December 1,
2017, 2018, and as of that date is
repealed.
SEC. 3. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.