Today's Law As Amended


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AB-489 Income and bank and corporation taxes: credit: taxes.(1999-2000)



As Amends the Law Today


SECTION 1.

 Section 17052.26 is added to the Revenue and Taxation Code, to read:

17052.26.
 (a) For each taxable year beginning on or after January 1, 2000, and before January 1, 2007, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to the costs paid or incurred during the
taxable year by the taxpayer on tips reported by his or her employees pursuant to Section 13055 of the Unemployment Insurance Code for unemployment insurance taxes and employment training taxes.
(b) For purposes of this section:
(1) “Unemployment insurance taxes” means employer contributions to the Unemployment Fund pursuant to Section 977 of the Unemployment Insurance Code.
(2) “Employment training taxes” means employer contributions to the Employment Training Fund pursuant to Section 976.6 of the Unemployment Insurance Code.
(3) “Tips” has the meaning provided in Section 927 of the Unemployment Insurance Code.
(c) In the case where the credit allowed under this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” for the succeeding 15 years, or until the credit is exhausted, whichever occurs first.
(d) No deduction shall be allowed as otherwise provided in this part for that portion of any costs paid or incurred for the taxable year which is equal to the amount of the credit allowed under this section attributable to those costs.
(e) This section remain in effect only until December 1, 2007, and as of that date is repealed.

SEC. 2.

 Section 23616 is added to the Revenue and Taxation Code, to read:

23616.
 (a) For each income year beginning on or after January 1, 2000, and before January 1, 2007, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to the costs paid or incurred during the income year
by the taxpayer on tips reported by his or her employees pursuant to Section 13055 of the Unemployment Insurance Code for unemployment insurance taxes and employment training taxes.
(b) For purposes of this section:
(1) “Unemployment insurance taxes” means employer contributions to the Unemployment Fund pursuant to Section 977 of the Unemployment Insurance Code.
(2) “Employment training taxes” means employer contributions to the Employment Training Fund pursuant to Section 976.6 of the Unemployment Insurance Code.
(3) “Tips” has the meaning provided in Section 927 of the Unemployment Insurance Code.
(c) In the case where the credit allowed under this section exceeds the “tax,” the excess may be carried over to reduce the “tax” for the succeeding 15 years, or until the credit is exhausted, whichever occurs first.
(d) No deduction shall be allowed as otherwise provided in this part for that portion of any costs paid or incurred for the income year which is equal to the amount of the credit allowed under this section attributable to those costs.
(e) This section shall remain in effect only until December 1, 2007, and as of that date is repealed.
SEC. 3.
 The Franchise Tax Board shall report to the Legislature by January 1, 2006, on the annual number of taxpayers claiming the credits allowed by this act and the value of the credits claimed for each year. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.