Today's Law As Amended


Add To My Favorites | print page

AB-1990 Income taxes: credit: unemployed workers: child care costs.(2009-2010)



As Amends the Law Today


SECTION. 1.

 Section 17052.19 is added to the Revenue and Taxation Code, to read:

17052.19.
 (a) For each taxable year beginning on or after January 1, 2011, there shall be allowed as a credit against the “net tax” (as defined by Section 17039) an amount equal to the amount determined in subdivision (b).
(b) (1) The amount of the credit allowed by the section shall be 100 percent of the cost paid or incurred by the taxpayer for contributions for child care costs made on behalf of any qualified dependent of the taxpayer.
(2) The amount of the credit allowed by this section in any taxable year shall not exceed five hundred dollars ($500) for each qualified dependent.
(c) For purposes of this section:
(1) “Contributions” include direct payments to child care programs or providers.
(2) “Qualified child care” includes, but is not limited to, center-based service, in-home care, or home-provider care.
(3) “Qualified dependent” means any dependent of a taxpayer who is under 12 years of age.
(4) “Taxpayer” means an individual who is unemployed and who received unemployment insurance compensation benefits awarded pursuant to Chapter 5 (commencing with Section 1251) of Part 1 of Division 1 of the Unemployment Insurance Code.
(d) If the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding years if necessary until the credit has been exhausted.
(e) No deduction shall be allowed as otherwise provided in this part for that portion of expenses paid or incurred for the taxable year that is equal to the amount of the credit allowed under this section.
SEC. 2.
 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.