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

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Date Published: 04/30/2019 09:00 PM
AB1228:v97#DOCUMENT

Amended  IN  Assembly  April 30, 2019
Amended  IN  Assembly  April 04, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1228


Introduced by Assembly Member Calderon

February 21, 2019


An act to add and repeal Sections 17053.60 and 23660 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1228, as amended, Calderon. Income taxes: credits: reusable or compostable cutlery.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, 2020, and before January 1, 2025, to a qualified taxpayer, as defined, in an amount equal to 20% of the costs paid or incurred during the taxable year by the qualified taxpayer for reusable or the purchase of compostable cutlery.
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 17053.60 is added to the Revenue and Taxation Code, to read:

17053.60.
 (a) For each taxable year beginning on or after January 1, 2019, 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 reusable or the purchase of compostable cutlery.
(b) For purposes of this section, “qualified taxpayer” means a taxpayer that is a food service business with a gross income for the taxable year in which the credit is claimed of ____ dollars ($____) or less. 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, 2019, 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 reusable or the purchase of compostable cutlery.
(b) For purposes of this section, “qualified taxpayer” means a taxpayer that is a food service business with a gross income for the taxable year in which the credit is claimed of ____ dollars ($____) or less. 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.