Today's Law As Amended


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AB-1597 Personal income tax: credit: loss of income.(2011-2012)



As Amends the Law Today


SECTION 1.

 Section 17054.6 is added to the Revenue and Taxation Code, to read:

17054.6.
 (a)  For each taxable year beginning on or after January 1, 2012, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 10 percent of the loss of income of a taxpayer.
(b) The credit under this section shall not exceed three hundred dollars ($300) per taxable year for a single individual or a married individual filing a separate return, and six hundred dollars ($600) per taxable year for a married couple filing a joint return.
(c) For purposes of this section, “loss of income” means a reduction in adjusted gross income in the current taxable year from the preceding taxable year of 10 percent or more.
(d) The credit under this section shall be allowed only if adjusted gross income for the taxable year is less than:
(1) Eighty thousand dollars ($80,000), if single.
(2) One hundred sixty thousand dollars ($160,000), if married.
(e) 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.
(f) (1) A credit under this section shall be allowed only if the loss of income is not the result of a dismissal or termination for cause or the result of a finding of guilt in a criminal proceeding or a pending criminal investigation.
(2) By signing a tax return in which this credit is claimed, the taxpayer shall affirmatively acknowledge the loss of income is not the result of a dismissal or termination for cause or a result of a finding of guilt in a criminal proceeding or a pending criminal investigation.
(g) The Franchise Tax Board may prescribe those regulations as may be necessary to administer and carry out the purposes of this section.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.