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AB-248 Income taxes: credits: cleaning and sanitizing supplies: COVID-19.(2021-2022)

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Date Published: 01/03/2022 02:00 PM
AB248:v98#DOCUMENT

Amended  IN  Assembly  January 03, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 248

Introduced by Assembly Member Choi
(Coauthors: Assembly Members Chen, Davies, Lackey, Nguyen, Seyarto, and Villapudua)

January 14, 2021

An act to add and repeal Sections 17053.2 and 23664 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 248, as amended, Choi. Income taxes: credits: cleaning and sanitizing supplies: COVID-19.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, 2022, and before January 1, 2022, 2023, to a taxpayer that is a business with a physical location in the state in an amount equal to the costs paid or incurred by the qualified taxpayer during the taxable year for the purchase of cleaning and sanitizing supplies used at business locations in the state to prevent the transmission of the novel coronavirus (COVID-19). The bill would also include additional information required for any bill authorizing a new tax expenditure.
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 17053.2 is added to the Revenue and Taxation Code, to read:

17053.2.
 (a) For each taxable year beginning on or after January 1, 2021, 2022, and before January 1, 2022, 2023, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to the costs paid or incurred by the qualified taxpayer during the taxable year for the purchase of cleaning and sanitizing supplies used at business locations in the state to prevent the transmission of the novel coronavirus (COVID-19).
(b) For purposes of this section, “qualified taxpayer” means a taxpayer that is a business with a physical location in the state.
(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed under this section.
(d) 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 seven years as necessary, until the credit is exhausted.
(e) For purposes of complying with Section 41, the Legislature finds as follows:
(1) The purpose of the tax expenditures allowed by this section and Section 23664 is to help reimburse those businesses that incurred extra costs to protect their employees and the public and prevent the transmission of the novel coronavirus (COVID-19).
(2) Notwithstanding Section 19542, in order to provide information on the use of these tax expenditures, the Franchise Tax Board shall produce a report for the Legislature in compliance with Section 9795 of the Government Code. The report shall be filed by June 1, 2024, and shall contain both of the following:
(A) The number of taxpayers claiming the credit.
(B) The average credit amount on tax returns claiming the credit.
(f) This section shall remain in effect only until December 1, 2022, 2024, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (d), until the credit is exhausted.

SEC. 2.

 Section 23664 is added to the Revenue and Taxation Code, to read:

23664.
 (a) For each taxable year beginning on or after January 1, 2021, 2022, and before January 1, 2022, 2023, there shall be allowed a credit against the “tax,” as defined in Section 23036, to a qualified taxpayer in an amount equal to the costs paid or incurred by the qualified taxpayer during the taxable year for the purchase of cleaning and sanitizing supplies used at business locations in the state to prevent the transmission of the novel coronavirus (COVID-19).
(b) For purposes of this section, “qualified taxpayer” means a taxpayer that is a business with a physical location in the state.
(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed under this section.
(d) 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 seven years as necessary, until the credit is exhausted.
(e) This section shall remain in effect only until December 1, 2022, 2024, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (d), until the credit is exhausted.

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.