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AB-1878 Corporate income taxes: exclusion: space transportation companies.(2017-2018)

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Date Published: 01/17/2018 09:00 PM
AB1878:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 1878

Introduced by Assembly Member Lackey
(Coauthors: Assembly Members Cunningham and Fong)
(Coauthor: Senator Wilk)

January 17, 2018

An act to add Section 24308.8 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1878, as introduced, Lackey. Corporate income taxes: exclusion: space transportation companies.
Existing law, the Corporation Tax Law, provides for various exclusions from gross income in determining tax liability.
This bill, for space transportation companies, would exclude from gross income any business income attributable to sources within this state, as specified, for taxable years beginning on or after January 1, 2017.
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 24308.8 is added to the Revenue and Taxation Code, to read:

24308.8.
 (a) For each taxable year beginning on or after January 1, 2017, with regard to a space transportation company, gross income does not include the amount of business income attributable to sources within this state, as determined pursuant to Section 25137 and any regulations issued thereunder.
(b) For purposes of this section:
(1) “Space” means an altitude of 62 statute miles or more above the surface of the earth.
(2) “Space transportation activity” means the movement or attempted movement of people or property, including without limitation, launch vehicles, satellites, payloads, cargo, refuse, or any other property to space.
(3) “Space transportation company” means a taxpayer that generates more than 50 percent of its gross receipts from the provision of space transportation activities for compensation in a taxable year.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.