Today's Law As Amended

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AB-1864 Personal income taxes: deductions: federal income tax paid. (2017-2018)



SECTION 1.

 Section 17210 is added to the Revenue and Taxation Code, to read:

17210.
 (a) For taxable years beginning on or after January 1, 2018, there shall be allowed as a deduction an amount equal to the amount of federal income tax paid by an individual for that taxable year.
(b) For purposes of this section, “federal income tax paid” means the amount paid to the Internal Revenue Service for the individual’s federal income tax liability under Chapter 1 of the Internal Revenue Code for that taxable year after reduction for all credits allowed under Chapter 1 of the Internal Revenue Code, except for the credit for payments of federal estimated tax, the credit for the overpayment of any federal tax, and the credit allowed by Section 31 of the Internal Revenue Code, relating to taxes withheld on wages.
(c) Any additional federal income tax paid by an individual on income for that individual’s federal tax liability for that taxable year beginning on or after January 1, 2018, that may be assessed for federal income tax under Chapter 1 of the Internal Revenue Code after the filing of the original return by an individual shall be allowed as a deduction for the taxable year in the year in which the amount is paid.
(d) Any refund or credit of federal income tax previously paid by an individual for a taxable year beginning on or after January 1, 2018, that is received or credited after the filing of the original return by the individual for which the individual was previously allowed as a deduction pursuant to subdivision (a) shall be included as income for the taxable year during which the refund is received.
(e) This section shall be known, and may be cited as, the Prosperous Economy and Payer Protection through Equitable Rates Act.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.