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AB-624 Income taxes: credit: robotics club donation.(2017-2018)

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Date Published: 04/25/2017 09:00 PM
AB624:v98#DOCUMENT

Amended  IN  Assembly  April 25, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 624


Introduced by Assembly Member Maienschein
(Coauthors: Assembly Members Cunningham, Lackey, Mathis, Waldron, Acosta, Chávez, Chen, Patterson, and Voepel)
(Coauthor: Senator Anderson)

February 14, 2017


An act to add and repeal Sections 17053.45 and 23645 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 624, as amended, Maienschein. Income taxes: credit: robotics club donation.
The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws.
This bill, under both laws, for taxable years beginning on or after January 1, 2018, and before January 1, 2023, would allow as a credit against those taxes an amount equal to 50% of the qualified amount paid or incurred, not to exceed $10,000, to a robotics club at a school in California during the taxable year. The bill would limit the aggregate amount of these credits to be allocated in each calendar year to up to $1,000,000. The bill would require the Franchise Tax Board to allocate and certify these tax credits to taxpayers on a first-come-first-served basis.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 17053.45 is added to the Revenue and Taxation Code, to read:

17053.45.
 (a) For each taxable year beginning on or after January 1, 2018, and before January 1, 2023, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the qualified amount paid or incurred, not to exceed ten thousand dollars ($10,000), to a robotics club during the taxable year.
(b) For purposes of this section:
(1) “Qualified amount” means the amount paid or incurred for robotics club competition entry fees and associated travel and amounts for the acquisition of materials and equipment.
(2) “Robotics club” means a STEM club at a kindergarten or any of grades 1 to 12, inclusive, at a public, charter charter, or private school in California. California that competes in robotics competitions.
(c) The aggregate amount of credits that may be allocated pursuant to this section and Section 23645 shall be an amount equal to the sum of the following:
(1) One million dollars ($1,000,000) in credits for each calendar year.
(2) The unused allocation credit amount, if any, for the preceding calendar year.
(d) For the purposes of this section, the Franchise Tax Board shall do both of the following:
(1) On or after January 1, 2018, and before January 1, 2023, allocate and certify tax credits to taxpayers on a first-come-first-served basis by determining and designating applicants who meet the requirements of this section.
(2) Once the credits allocated exceed the limit established in subdivision (c), the Franchise Tax Board shall cease to allocate and certify tax credits to taxpayers.

(c)

(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 taxable year, and succeeding years if necessary, until the credit is exhausted.

(d)

(f) A deduction shall not be allowed under Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 for any contribution made pursuant to subdivision (a).
(g) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.

SEC. 2.

 Section 23645 is added to the Revenue and Taxation Code, to read:

23645.
 (a) For each taxable year beginning on or after January 1, 2018, and before January 1, 2023, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 50 percent of the qualified amount paid or incurred, not to exceed ten thousand dollars ($10,000), to a robotics club during the taxable year.
(b) For purposes of this section:
(1) “Qualified amount” means the amount paid or incurred for robotics club competition entry fees and associated travel and amounts for the acquisition of materials and equipment.
(2) “Robotics club” means a STEM club at a kindergarten or any of grades 1 to 12, inclusive, at a public, charter charter, or private school in California. California that competes in robotics competitions.
(c) The aggregate amount of credits that may be allocated pursuant to this section and Section 17053.45 shall be an amount equal to the sum of the following:
(1) One million dollars ($1,000,000) in credits for each calendar year.
(2) The unused allocation credit amount, if any, for the preceding calendar year.
(d) For the purposes of this section, the Franchise Tax Board shall do both of the following:
(1) On or after January 1, 2018, and before January 1, 2023, allocate and certify tax credits to taxpayers on a first-come-first-served basis by determining and designating applicants who meet the requirements of this section.
(2) Once the credits allocated exceed the limit established in subdivision (c), the Franchise Tax Board shall cease to allocate and certify tax credits to taxpayers.

(c)

(e) 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 taxable year, and succeeding years if necessary, until the credit is exhausted.

(d)

(f) A deduction shall not be allowed under Article 1 (commencing with Section 24341) of Chapter 7 of Part 11 for any contribution made pursuant to subdivision (a).
(g) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.

SEC. 3.

 It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.

SEC. 4.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.