Today's Law As Amended


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AB-1228 Income taxes: credits: compostable cutlery.(2019-2020)



As Amends the Law Today


SECTION 1.

 Section 17053.60 is added to the Revenue and Taxation Code, to read:

17053.60.
 (a) For each taxable year beginning on or after January 1, 2020, and before January 1, 2025, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to 20 percent of the costs paid or incurred by the qualified taxpayer during the taxable year for the purchase of compostable cutlery.
(b) For purposes of this section, “qualified taxpayer” means a taxpayer that is a food service business.
(c) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.
(d) (1) It is the intent of the Legislature to comply with Section 41.
(2) The intent of this measure is to encourage the food service industry to lessen single-use plastic cutlery waste by opting for compostable cutlery as a solution in combating waste.
(e) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.

SEC. 2.

 Section 23660 is added to the Revenue and Taxation Code, to read:

23660.
 (a) For each taxable year beginning on or after January 1, 2020, and before January 1, 2025, there shall be allowed a credit against the “tax,” as defined in Section 23036, to a qualified taxpayer in an amount equal to 20 percent of the costs paid or incurred by the qualified taxpayer during the taxable year for the purchase of compostable cutlery.
(b) For purposes of this section, “qualified taxpayer” means a taxpayer that is a food service business.
(c) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.
(d) (1) It is the intent of the Legislature to comply with Section 41.
(2) The intent of this measure is to encourage the food service industry to lessen single-use plastic cutlery waste by opting for compostable cutlery as a solution in combating waste.
(e) This section shall remain in effect only until December 1, 2025, and as of that date is repealed.
SEC. 3.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.