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AB-1442 Income taxes: credits: Share Our Values Tax Credit.(2019-2020)

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Date Published: 06/12/2019 09:00 PM
AB1442:v97#DOCUMENT

Amended  IN  Senate  June 12, 2019
Amended  IN  Senate  May 20, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 1442


Introduced by Assembly Member Luz Rivas
(Coauthors: Assembly Members Chiu, Limón, and Smith)
(Coauthor: Senator Leyva)

February 22, 2019


An act to add and repeal Sections 17053.99 and 23699 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1442, as amended, Luz Rivas. Income taxes: credits: Share Our Values Tax Credit.
The Personal Income Tax Law and the Corporation Tax Law allow a motion picture credit for taxable years beginning on or after January 1, 2020, to be allocated by the California Film Commission on or after July 1, 2020, and before July 1, 2025, in an amount equal to 20% or 25% of qualified expenditures for the production of a qualified motion picture in this state, with additional credit amounts allowed, including for amounts equal to specified qualified expenditures and qualified wages relating to original photography outside the Los Angeles zone, as specified.
This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, would allow an additional tax credit, in an unspecified amount, amount equal to 5% of qualified expenditures, described above, to qualified taxpayers allocated the tax credits described above, that either relocated to California from, or chose not to pay or incur qualified expenditures for a qualified motion picture in, a state that has pending legislation or existing law that prohibits access to, criminalizes the provision of, or otherwise restricts a woman’s access to abortion services after 6 8 weeks from the beginning of the pregnancy or earlier. The bill would further provide that the tax credits be allocated by the California Film Commission on or after July 1, 2020, and before July 1, 2025, in the same manner and time period as the motion picture credit. The bill would limit the aggregate amount of these new credits to be allocated in each fiscal year to $100,000,000, plus additional specified amounts. The bill would require these credits to be allocated 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 17053.99 is added to the Revenue and Taxation Code, to read:

17053.99.
 (a) For each taxable year beginning on or after January 1, 2020, and before January 1, 2026, there shall be allowed against the “net tax,” as defined by Section 17039, a tax credit to a qualified taxpayer in an amount equal to ____. 5 percent of the qualified expenditures for the production of a qualified motion picture in California.
(b) (1) For purposes of this section, the definitions found in Section 17053.98 shall apply except as provided in paragraph (2).
(2) (A) “Qualified taxpayer” means a qualified taxpayer, as defined in Section 17053.98, allocated tax credits pursuant to Section 17053.98 that provides additional information to the California Film Commission, in addition to the statement required pursuant to clause (x) of subparagraph (A) of paragraph (2) of subdivision (g) of Section 17053.98, demonstrating either of the following:

(A)

(i) The qualified motion picture relocated to California from a state that has pending legislation or existing law that prohibits access to, criminalizes the provision of, or otherwise restricts a woman’s access to abortion services after six eight weeks from the beginning of the pregnancy or earlier.

(B)

(ii) The qualified taxpayer chose to pay or incur qualified expenditures in California rather than in a state that has pending legislation or existing law that prohibits access to, criminalizes the provision of, or otherwise restricts a woman’s access to abortion services after six eight weeks from the beginning of the pregnancy or earlier.
(B) A qualified taxpayer shall also provide the California Film Commission with a narrative summary, in addition to the information provided pursuant to subparagraph (A) and the narrative summary provided pursuant to Section 17053.98, describing how the qualified taxpayer, and any relevant activities during the production period, shares California’s values with regard to women’s reproductive rights.
(c) For purposes of this section, the California Film Commission shall allocate tax credits to qualified taxpayers on or after July 1, 2020, and before July 1, 2025, in the same allocation periods per fiscal year as provided in Sections 17053.98 and 23698.
(d) (1) (A) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 23699 is one hundred million dollars ($100,000,000), plus any amount described in subparagraph (B), for the 2020–21 fiscal year and each fiscal year thereafter, through and including the 2024–25 fiscal year. These credits shall be allocated on a first-come-first-served basis.
(B) The unused allocation credit amount, if any, for the preceding fiscal year.

(c)

(2) (A) The amount of credit allowed by this section shall be in addition to any tax credit amount allocated to a qualified taxpayer pursuant to Section 17053.98 and shall not not, in any manner, reduce the aggregate amount of tax credit that may be allocated pursuant to subdivision (i) of Sections 17053.98 and 23698.
(B) A determination of eligibility for the tax credit allowed pursuant to this section or Section 23699 shall not impact a taxpayer’s ranking or tax credit allocation amount determined by the California Film Commission pursuant to Sections 17053.98 and 23698.

(d)

(e) The Franchise Tax Board and the California Film Commission may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board and the California Film Commission pursuant to this section.

(e)

(f) The credit in this section shall be known as the Share Our Values Tax Credit.
(g) This section shall remain in effect only until December 1, 2026, and as of that date is repealed.

SEC. 2.

 Section 23699 is added to the Revenue and Taxation Code, to read:

23699.
 (a) For each taxable year beginning on or after January 1, 2020, and before January 1, 2026, there shall be allowed against the “tax,” as defined by Section 23036, a tax credit to a qualified taxpayer in an amount equal to ____. 5 percent of the qualified expenditures for the production of a qualified motion picture in California.
(b) (1) For purposes of this section, the definitions found in Section 23698 shall apply except as provided in paragraph (2).
(2) (A) “Qualified taxpayer” means a qualified taxpayer, as defined in Section 23698, allocated tax credits pursuant to Section 23698 that provides additional information to the California Film Commission, in addition to the statement required pursuant to clause (x) of subparagraph (A) of paragraph (2) of subdivision (g) of Section 23698, demonstrating either of the following:

(A)

(i) The qualified motion picture relocated to California from a state that has pending legislation or existing law that prohibits access to, criminalizes the provision of, or otherwise restricts a woman’s access to abortion services after six eight weeks from the beginning of the pregnancy or earlier.

(B)

(ii) The qualified taxpayer chose to pay or incur qualified expenditures in California rather than in a state that has pending legislation or existing law that prohibits access to, criminalizes the provision of, or otherwise restricts a woman’s access to abortion services after six eight weeks from the beginning of the pregnancy or earlier.
(B) A qualified taxpayer shall also provide the California Film Commission with a narrative summary, in addition to the information provided pursuant to subparagraph (A) and the narrative summary provided pursuant to Section 17053.98, describing how the qualified taxpayer, and any relevant activities during the production period, shares California’s values with regard to women’s reproductive rights.
(c) For purposes of this section, the California Film Commission shall allocate tax credits to qualified taxpayers on or after July 1, 2020, and before July 1, 2025, in the same allocation periods per fiscal year as provided in Sections 17053.98 and 23698.
(d) (1) (A) The aggregate amount of credits that may be allocated for a fiscal year pursuant to this section and Section 17053.99 is one hundred million dollars ($100,000,000), plus any amount described in subparagraph (B), for the 2020–21 fiscal year and each fiscal year thereafter, through and including the 2024–25 fiscal year. These credits shall be allocated on a first-come-first-served basis.
(B) The unused allocation credit amount, if any, for the preceding fiscal year.

(c)

(2) (A) The amount of credit allowed by this section shall be in addition to any tax credit amount allocated to a qualified taxpayer pursuant to Section 23698 and shall not not, in any manner, reduce the aggregate amount of tax credit that may be allocated pursuant to subdivision (i) of Sections 17053.98 and 23698.
(B) A determination of eligibility for the tax credit allowed pursuant to this section or Section 17053.99 shall not impact a taxpayer’s ranking or tax credit allocation amount determined by the California Film Commission pursuant to Sections 17053.98 and 23698.

(d)

(e) The Franchise Tax Board and the California Film Commission may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board and the California Film Commission pursuant to this section.

(e)

(f) The credit in this section shall be known as the Share Our Values Tax Credit.
(g) This section shall remain in effect only until December 1, 2026, 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.