California Assembly Bill AB242 Amended / Bill

 BILL NUMBER: AB 242AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 14, 2011 INTRODUCED BY Committee on Revenue and Taxation (Perea (Chair), Beall, Charles Calderon, Fuentes, and Gordon) FEBRUARY 3, 2011 An act to  amend Section 17220 of, and to  add Sections 17131.10, 17131.11, 17131.12, 17131.13, 17131.14, 17134.1,  17202.1, 24304,  and 24343.6  to,   to  the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 242, as amended, Committee on Revenue and Taxation. Income taxes: conformity: federal health care. The Personal Income Tax Law and the Bank and Corporation Tax Law, among other things, allow various exclusions, deductions, and credit in modified conformity to federal income tax laws. This bill would provide additional modified conformity to specified provisions of the federal Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 relating to simple cafeteria plans for small businesses, health care benefits of  indian   Indian  tribe members, free choice vouchers, therapeutic discovery project grants,  and  student loan repayment programs  , and deduction for self-employment taxes  . This bill would take effect immediately as a tax levy. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 17131.10 is added to the Revenue and Taxation Code, to read: 17131.10.  (a   )    For taxable years beginning on or after January 1, 2011, Section 125(j) of the Internal Revenue Code, relating to simple cafeteria plans for small businesses, as added by Section 9022 of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided.  (b) For taxable years beginning on or after January 1, 2014, Section 125(f) of the Internal Revenue Code, relating to qualified benefits defined, as amended by Section 1515 of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided.  SEC. 2. Section 17131.11 is added to the Revenue and Taxation Code, to read: 17131.11. For taxable years beginning on or after January 1, 2010, Section 137 of the Internal Revenue Code, relating to adoption assistance programs, as amended by Section 10909(a)(2) of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided. SEC. 3. Section 17131.12 is added to the Revenue and Taxation Code, to read: 17131.12. (a) Section 139D of the Internal Revenue Code, relating to Indian health care benefits, as added by Section 9021 of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided. (b) This section shall apply to benefits and coverage provided after March 23, 2010.  (c) No inference shall be made with respect to the enactment the act adding this section with respect to the exclusion from gross income of benefits provided by either an Indian tribe or tribal organization that are not within the scope of this section or were provided prior to March 23, 2010.   (c) This section shall not be construed to create an inference with respect to the exclusion from gross income of either of the following:   (1) Benefits provided by an Indian tribe or tribal organization that are not within the scope of this section.   (2) Benefits provided prior to the effective date of the act adding this section.  SEC. 4. Section 17131.13 is added to the Revenue and Taxation Code, to read: 17131.13. For  taxable years beginning   vouchers provided  on or after January 1, 2014, Section 139D of the Internal Revenue Code, relating to free choice vouchers, as added by Section 10108(f) of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided. SEC. 5. Section 17131.14 is added to the Revenue and Taxation Code, to read: 17131.14. (a) Any grant made in any year by the Secretary of the Treasury under Section 9023(e) of the Patient Protection and Affordable Care Act (Public Law 111-148), to a person that places in service qualified therapeutic discovery project property, shall not be includable in the gross income or the alternative minimum taxable income of the taxpayer. (b) This section shall apply in the same manner and to the same periods as  the provisions of federal law referred to in subdivision (a) apply   Section 48D(f)(3) of the Internal Revenue Code, as   added by Section 9023(a) of the Patient Protection and Affordable Care Act (Public Law 111-148), relating to treatment of grants, applies  for federal purposes, except as otherwise provided. SEC. 6. Section 17134.1 is added to the Revenue and Taxation Code, to read: 17134.1. For taxable years beginning on or after January 1, 2010, Section 108(f)(4) of the Internal Revenue Code, relating to payments under the National Health Service Corps loan repayment program and certain state loan repayment programs, as amended by Section 10908 of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided.  SEC. 7.   Section 17220 of the Revenue and Taxation Code is amended to read: 17220. (a) Section 164(a)(3) of the Internal Revenue Code, relating to the deductibility of state, local, and foreign income, war profits, and excess profits taxes, shall not apply. (b) Section 164(b)(5) of the Internal Revenue Code, relating to general sales taxes, shall not apply. (c) In addition to the provisions of Section 164(c) of the Internal Revenue Code, relating to deduction denied in case of certain taxes, no deduction shall be allowed for any tax imposed under Chapter 10.5 (commencing with Section 17935), Chapter 10.6 (commencing with Section 17941), or Chapter 10.7 (commencing with Section 17948) of this part or under Part 11 (commencing with Section 23001). (d) For taxable years beginning on or after January 1, 2013, Section 164(f) of the Internal Revenue Code, relating to deduction for one-half of self-employment taxes, as amended by Sections 9015(b) and 10906(b) of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided.   SEC. 7.   Section 17202.1 is added to the   Revenue and Taxation Code   , to read:   17202.1. For taxable years beginning on or after January 1, 2014, Section 162(a) of the Internal Revenue Code, as amended by Section 10108(g) of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided.   SEC. 8.   Section 24304 is added to the   Revenue and Taxation Code   , to read:   24304. (a) Any grant made in any year by the Secretary of the Treasury under Section 9023(e) of the Patient Protection and Affordable Care Act (Public Law 111-148), to a person that places in service qualified therapeutic discovery project property, shall not be includable in the gross income or the alternative minimum taxable income of the taxpayer. (b) This section shall apply in the same manner and to the same periods as Section 48D(f)(3) of the Internal Revenue Code, as added by Section 9023(a) of the Patient Protection and Affordable Care Act (Public Law 111-148), relating to treatment of grants, applies for federal purposes, except as otherwise provided.   SEC. 8.   SEC. 9.  Section 24343.6 is added to the Revenue and Taxation Code, to read: 24343.6. For  taxable years beginning   vouchers provided  on or after January 1, 2014, Section 162(a) of the Internal Revenue Code, as amended by Section 10108(g) of the Patient Protection and Affordable Care Act (Public Law 111-148), shall apply, except as otherwise provided.  SEC. 9.   SEC. 10.  This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.