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AB-1990 Income taxes: credit: unemployed workers: child care costs.(2009-2010)

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Amended  IN  Assembly  April 05, 2010

CALIFORNIA LEGISLATURE— 2009–2010 REGULAR SESSION

Assembly Bill
No. 1990

Introduced  by  Assembly Member Anderson

February 17, 2010

An act relating to taxation. An act to add Section 17052.19 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1990, as amended, Anderson. Income taxes: reduction. credit: unemployed workers: child care costs.
The Personal Income Tax Law imposes taxes upon taxable income and Corporation Tax Law provide tax credits for startup expenses for child care programs or for constructing a child care facility, costs for child care information and referral services, and costs paid or incurred for contributions to a qualified child care plan. Under existing law, these credits are available for certain taxable years beginning before January 1, 2012.
This bill would declare the Legislature’s intent to enact legislation that wouldreduce personal income taxes, for each taxable year beginning on or after January 1, 2011, provide a tax credit for 100% of the costs paid or incurred by the taxpayer, as defined, for contributions, as defined, for child care, as specified.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION. 1.

 Section 17052.19 is added to the Revenue and Taxation Code, to read:

17052.19.
 (a) For each taxable year beginning on or after January 1, 2011, there shall be allowed as a credit against the “net tax” (as defined by Section 17039) an amount equal to the amount determined in subdivision (b).
(b) (1) The amount of the credit allowed by the section shall be 100 percent of the cost paid or incurred by the taxpayer for contributions for child care costs made on behalf of any qualified dependent of the taxpayer.
(2) The amount of the credit allowed by this section in any taxable year shall not exceed five hundred dollars ($500) for each qualified dependent.
(c) For purposes of this section:
(1) “Contributions” include direct payments to child care programs or providers.
(2) “Qualified child care” includes, but is not limited to, center-based service, in-home care, or home-provider care.
(3) “Qualified dependent” means any dependent of a taxpayer who is under 12 years of age.
(4) “Taxpayer” means an individual who is unemployed and who received unemployment insurance compensation benefits awarded pursuant to Chapter 5 (commencing with Section 1251) of Part 1 of Division 1 of the Unemployment Insurance Code.
(d) If 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 years if necessary until the credit has been exhausted.
(e) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under 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.
SECTION 1.

The Legislature declares its intent to enact legislation that would reduce personal income taxes.